Distributors are increasingly offering value-added services like light assembly, kitting, equipment installation and quality assurance to enhance customer experience and differentiate themselves from competitors, write John Nantz and Sabrina Franco of Redwood Advisors. Some distributors report margins of up to 40% on these services, which also include postpurchase offerings like repair and maintenance, and the services showcase their expertise and deep customer knowledge.
Border States has started construction on a branch in Bemidji, Minn., that will serve the electrical and industrial sectors and is expected to open later in the year. The facility aims to enhance capabilities and customer experiences, including an improved City Desk, allowing for more efficient operations and faster response times.
Ocean shipping costs are falling, providing relief to US importers as tariffs and spending concerns persist. Rates from Shanghai to the US West Coast declined nearly 27% from a week earlier, fueling a 6.8% drop in the global index. The National Retail Federation expects US imports to peak earlier than usual this year, with a sharp drop anticipated in the fall.
Sam's Club is contemplating price increases on discretionary items like air fryers, coffee makers and outdoor decor due to costs from new tariffs. The Walmart-owned retailer said it will maintain stable prices on over 1,000 summer products until July 22, with promotions to follow, and it expects to avoid price increases on food by leveraging packaging improvements and demand forecasting.
Nearshoring offers manufacturers potential benefits such as reduced lead times, simplified logistics and improved regional trade opportunities by shifting production to geographically closer, lower-cost countries, writes Eddy Azad, the CEO of Parsec Automation. However, it also presents challenges, including adapting to different regulatory environments and supply chain ecosystems. Manufacturers must weigh these factors to align nearshoring strategies with their long-term business goals.
Purpose-driven communication is evolving as organizations navigate a challenging political environment, writes Cortney Stapleton of The Bliss Group. Some are focusing on measurable actions and tangible outcomes to avoid legal scrutiny and political backlash, while others are engaging in "green hushing" by continuing sustainability efforts quietly.
Effective communication is a company's "nervous system" that coordinates actions and aligns strategic objectives, writes Lance Mortlock, a managing partner with EY Canada, who recommends using storytelling to help teams understand strategy, being consistent, encouraging feedback and monitoring the effectiveness of messages. "It's essential to keep your figure on the pulse, gather feedback regularly and be willing to adjust strategies based on what's resonating," Mortlock writes.
Prioritize your organization's greatest asset — your people. NAW's premier education programs, such as the online Management Academy and the in-depth Distribution Leadership Program at THE Ohio State University, are designed to equip your high-potential employees with the skills and insights they need to lead and succeed. Ensure your rising stars are prepared to drive your business forward by investing in their growth today. Learn more about how NAW can help you develop the leaders of tomorrow.
The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more.
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