Home Depot is acquiring SRS Distribution, a supplier for roofing, landscaping and pool contractors, in an $18.25 billion cash-and-debt deal that would be Home Depot's largest acquisition to date. The deal, expected to close by January 2025, is part of the home improvement retailer's ongoing quest to capture more business from contractors, roofers and other professional contractors who work on large projects and buy supplies through wholesale or specialty distributors.

Distributors should work with manufacturers to segment inventory based on how quickly products move, which will help right-size inventory through working capital and SKU count. "Nine times out of 10 when we help distributors do this, they're reducing the amount of inventory they have in slow-moving SKUs and they're reallocating that capital to faster-moving SKUs. That's an opportunity for both sides to work together," says James Dorn of the Dorn Group, a distributor and manufacturer consultant firm.

GDP expanded at a 3.4% annualized rate in the fourth quarter, above the prior estimate of 3.2%, according to the Bureau of Economic Analysis at the Commerce Department. Meanwhile, a separate report showed that initial jobless claims were measured at 210,000 last week.

Many businesses are tapping into advanced AI technology to bolster day-to-day logistics operations, such as Mars' use of the technology to combine truckloads, reduce shipping costs and speed deliveries. Tech firms are also tapping into the growing appeal and functionality of AI, including Uber Freight and FourKites, which have designed chatbots to support shipping operations.

As GenAI becomes more ubiquitous in the procurement process, leaders must learn how to work the technology to provide oversight for when the technology "hallucinates" or misclassifies data, according to David Schultz, VP, Chief Supply Chain Executive at Westfall Technik Inc. He argues AI cannot achieve desired results without human supervision of relevant data, checks for accuracy and intervention.

Form a genuine connection with customers by actively listening to their concerns, expressing empathy, offering genuine compliments and balancing friendliness with professionalism, writes Ian Miller. "Good rapport is not just about resolving the immediate issue at hand; it's about creating an emotional connection that can lead to a long-term relationship," Miller notes.

Leaders can better connect with their teams and inspire their success by ditching hedging phrases such as "seems like" or "I believe," asking thoughtful questions and using pronouns such as "we" to build collaboration and "you" to increase engagement, says Wharton School marketing professor Jonah Berger. Using words to become a persuasive and inspiring leader is something anyone can learn, and Berger suggests recording yourself to catch verbal ticks that may be undermining your leadership.

Data show that Friday workdays in the US are becoming more leisurely, with many employees signing off early or working from home at the end of the week. Evidence suggests it is not detrimental, however, as taking Friday afternoons off can help people feel recharged, less stressed because they have time for errands and appointments, and more productive during the rest of the week.

Research shows the benefits are clear: Companies that invest in their employees' professional development experience increased employee retention, improved performance and enhanced innovation. Join a select group of high-caliber professionals for an exclusive program designed to accelerate your career in wholesale distribution. This intensive, 5-day certificate program, led by seven expert faculty members from The Ohio State University, will equip students with the strategic skills and knowledge to navigate industry challenges, drive growth and lead with confidence. The Spring Session is April 29 - May 3, 2024. Learn More.

The difference between leading and lagging distribution companies often rests on the performance of their sales teams. Join Doug Wyatt (SPARXiQ) and industry sales leaders Joe Velleman (Mid-City Supply) and Jeff Weiss (Livingston & Haven) in this panel discussion as they provide insights to help you bridge this gap through strategic upskilling. Register here.

The NAW Company Roundtables are an exclusive community of thought leaders from Billion Dollar and Large Company distribution enterprises who congregate to network with non-competing peers in multiple lines of trade on key issues. Learn more about the many Roundtable event opportunities we offer, and how your leaders can get involved. Learn more.