Producer prices approach record growth in May | Survey: Economy, workers among distributors' concerns | MSC Industrial: Omnichannel now standard for B2B buyers
The producer price index increased by 0.8% in May from April and by 10.8% from a year ago, with the latter figure approaching the record of 11.5% set in March. Core PPI grew by 0.5% for the month and 6.8% for the year.
Almost half of distributors responding to Industrial Distribution's Survey of Distributor Operations said that economic conditions are their top business concern, followed by higher operating costs at 42%, keeping and finding quality workers at 41% each and inflation at 41%. Nearly 70% said they plan to pursue growth by increasing sales among current customers, with 54% planning to recruit new customers and 24% targeting competitors' customers.
Business-to-business e-commerce customers have come to expect that distributors will provide a common experience across multiple channels, said Mark Pickett, vice president of cross-channel growth at MSC Industrial Supply. Personalization, live chat and collaboration between sales and marketing are all key to a positive omnichannel experience, Pickett added.
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Distributors should ask enterprise resource planning system vendors about their understanding of a distributor's industry, their distinguishing characteristics and their metrics for evaluating success, writes Stephanie Clark of Enavate. Clark also recommends asking about available ongoing support and help with employee training and communication.
The need for space to store containers near ports is causing a surge in demand for suitable properties, with logistics companies and port operators eager to sign leases. "In Los Angeles, unless you dig up some more ocean, you don't have any more terminals, and it's the same thing in New York and New Jersey," says Curtis Spencer, CEO of IMS Worldwide.
Understanding your ideal customer -- what they want and need -- is key to expanding your customer base and growing sales, writes Ryann Dowdy, CEO and founder of Uncensored Consulting: Be in the Room. "Building connections should be at the heart of your marketing strategy," Dowdy notes.
Find what makes your company or product special, such as cost or quality, and you can hone in on that "competitive advantage" in your pitch, writes Jay Fuchs, editor of the HubSpot Sales Blog. "Having a feel for why real customers picked you over your competitors will give you a sincere, human perspective on your product or service's value," Fuchs adds.
Creating core values that link both customers and employees to a company's overall mission can provide the purpose and meaning necessary to keep them both engaged, says Denise Lee Yohn in this video. Yohn provides examples of how companies such as LinkedIn and Southwest Airlines have successfully combined both customer and employee needs.
Some leaders create adult-to-adult workplaces that treat employees with maturity, while others may default to parent-child management styles that assume that executives have all the answers. Leaders know they've created an adult-to-adult workplace when they have a team that can deal with the truth, collaborates on problem-solving, sees mistakes as an opportunity to learn and shares power, writes Scott Eblin.
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