August sales for MSC Industrial Supply declined nearly 10% against a year ago but improved from July, including with products not related to safety or janitorial. "These results reflect the continuing impact of COVID-19 and significant year-over-year declines in manufacturing activity," the company said.
Sellers who miss Fulfillment by Amazon shipping deadlines face possible suspension, regardless of whether the shipping delay is their fault or the fault of the carrier, according to an Amazon statement. Amazon is asking for at least 24 hours' notice if a shipment faces delay, but many sellers say they aren't always privy to that information.
Many distributors know their top stock-keeping units or customers from a revenue standpoint, but fewer are able to reliably and easily track the highest profit margins among customers and SKUs, writes Robert Sabath, who offers a model for assessing and tracking such data. "The more distributor teams review the practical information that is collected with this model, the better its results," he writes.
Supply chain technology is likely to attract more investors, according to Dave Dolan, managing director at investment bank DC Advisory, as the pandemic reveals opportunities for digital transformation. "If you think about a new normal where there are tighter margins and not as much capital expenditure to buy new trucks or equipment, software that helps you run that more efficiently is going to be a lot more relevant," Dolan says.
Make your business-to-business e-commerce site appeal to modern buyers by ensuring it's responsive, mobile-optimized and fosters trust with a secure payment gateway, James Warner writes. Create a superior user experience with fast navigation design and personalize content for business users, he recommends.
Expertise, knowledge and experience are what customers are looking for, so distributors should treat their cultivated information as a powerful resource for driving revenue, writes Robert Kelley. Technology is usually needed to augment salespeople's knowledge, he argues, while "other areas of opportunity are high-quality documentation including detailed specifications, solution briefs and example blueprints."
Managers can be empathetic and accommodating without breaking rules and ethical guidelines, even during a pandemic that's causing many difficult circumstances, writes Karin Hurt. "The more clear you can be about who owns the decision, and calibrate on what a compassionate response actually looks like, the easier it will be for your managers to make the right, and more consistent, call," she writes.
The question "Have I provided you with what you need to achieve a successful outcome?" helps managers convey that they care about employees and want to empower them with the right resources, writes Tanveer Naseer. The question also invites the employee to speak up about the situation, especially if something is lacking.
Old school distribution is about stocking inventory, taking orders and serving demand. New school distribution is about innovating through customer services and working side-by-side with customers in the real world. The future of distribution is about solving problems in your customer's business -- often before your customer even knows a problem exists. Innovate to Dominate provides breakthrough ideas, lessons from leading distributors who are innovating and inspiration to help you lead your customers into the future and sustain your competitive advantage.
In his Chairman's Column, NAW 2020 Chairman of the Board Doug York of Ewing Irrigation & Landscape Supply talks about the importance, now more than ever as distributors operate their businesses during a global pandemic, to identify and partner with the right service providers to create greater efficiencies and help distributors protect their margins and improve their cash flow. Read his Chairman's Column.
Are you well-informed about different best practices and knowledge in our industry? If not, NAW's Top 10 E-book List can help get you up-to-speed quickly so you and your business can stay competitive in these challenging times.
