Industrial distributors are facing increased competition and pressure on margins as demand softens. One-fifth of distributors cited "aggressive competitive behavior" as the biggest risk for the second half of the year in a second-quarter Baird-MDM survey. Respondents noted intensified competition, leading to price cuts and margin erosion across sectors like electrical, plumbing, HVAC and building products. However, margin recovery is largely expected in late 2024 as the market stabilizes.

Supply chain leaders have grown more pessimistic about revenue growth, with the 12% now expecting it to slow compared to 6% in March, according to an Accenture report. "Digital capabilities are key to reinventing supply chains, so they become sustainable, resilient, and competitive long-term despite geopolitical uncertainties," said Patty Riedl, Accenture's North American supply chain lead.

One Equity Partners has sold its Oklahoma-based MRO supplies master wholesaler ORS Nasco to Wynnchurch Capital. ORS has customers in the US, Canada and the Middle East and has 13 distribution centers.

Distributors can gain a competitive edge by harnessing AI and automation in their sales and marketing strategies. Effective use of CRM systems, marketing automation platforms, sales engagement tools, conversational intelligence and predictive intelligence can streamline processes, improve customer engagement and boost sales, writes Carly Cais, a business-to-business consultant.

Businesses must consider IT outages as significant a threat to the supply chain as natural disasters, writes Mihir Patel, pointing to the disruptions the recent global IT outage caused by a faulty software update from Crowdstrike created in aviation, retail, health care and other sectors. Incorporating IT risk into supply chain strategy should be approached holistically, writes Patel, urging "comprehensive strategies that blend traditional supply chain principles with modern IT resilience practices."

Boosting efficiency shouldn't be the only focus of salespeople, advises David Brock, author of "Sales Manager Survival Guide," because sending more emails that nobody reads or more phone calls that aren't returned doesn't boost sales. "Our jobs are not to be efficient for efficiency's sake," Brock writes. "Our jobs are to produce the outcomes we need to grow and scale."

Finance chiefs are increasingly issuing commercial paper to cut interest costs and prepare for potential Federal Reserve rate cuts. The short-term debt allows companies to quickly benefit from falling interest rates and provides a cheaper alternative to bank loans. Issuance of commercial paper has surged in recent years, with Prologis, Colgate-Palmolive and BXP among the firms that have recently used commercial paper to manage debt.

Leaders can promote career development with employees by cultivating personal relationships on a daily basis, writes Julie Winkle Giulioni, author of "Promotions Are So Yesterday." Leaders should take time to engage employees year round with honesty, curiosity, empathy and patience instead of merely checking off boxes during annual performance reviews, Winkle Giulioni writes.

Join us in Washington, D.C., January 27 -29, for NAW's Executive Summit, bringing together the best and brightest leaders from the wholesale distribution industry. Learn more 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.

Attending the Innovators Summit lets you stay updated with the latest industry developments and remain ahead of your competitors. By being aware of emerging trends and disruptive technologies, you can proactively adapt your business strategies, identify new revenue streams, and gain a competitive edge in the market. Learn more here.