Problem: Most Distributors Can’t Do Needle-Moving Change
B2B Cloud Commerce will be shaking business models in most channels by 2021. But, many distributors can only fine tune their past. Why? Check the fuzz factor on these four vitals: vision; strategy; innovation metrics; and can-do culture.
A Vision That Engages All Employees (and Stakeholder Groups)
What would employees think if you told them that: Continue reading 111. Re-Tune Your Vision, Strategy, Analytics, and Culture
Have you considered a warehouse robot for your distribution business? This is becoming an increasingly attractive cost-saving solution, especially for high-volume, small-pick areas. Take a look at these two references for breakthrough news:
- This Bloomberg article from June 29th talking about a robot arms race in the distribution world
- This short video and other informative articles on the Locus Robotics site
Continue reading 34. A Warehouse Robot Model for Every Distributor?
Analysis: 62% of Small Order Are Money Losers
Looking for Larger-Order Solutions? Here’s an eye opener. Calculate the average cost of processing an order at your distributorship. (Annual operating expenses divided by all transactions.) Then, skim the daily transaction log for all orders with gross margin dollars less than your average dollar-cost per order.
Don’t panic at the number you see! The average Waypoint Analytics’ client starts out with 62% of all orders being losers. But, don’t comfort yourself by using incremental cost per order logic. Sixty percent of your orders isn’t “just one more order”; overhead costs must be assigned! Continue reading 33. Getting to Win-Win: Larger-Order Solutions
The changing objectives of supply chain buyers and the Internet have combined to erode the value of traditional, product-pushing, channel reps. In today’s world, the challenge for reps will be in adapting and acquiring new skills before they fade away.
The Trends and Current Realities
Since 1980, there has been a huge and ongoing reduction in and consolidation of factory reps in all major channels. The 1990s first saw the behemoth Wal-Mart change the game when it requested that suppliers switch out area reps working on commission for executive-led supply chain teams with the power to enter into new collaborative supply chain solutions.
Continue reading 26. Channel Reps: It’s Time to Reinvent Your Cost/Benefit Value!
2020 is 5+ years away. Do you have a 2020 Company Plan? What are you doing to prepare for a world going exponentially digital?
Our personal shopping and education starts with Google or Amazon. YouTube currently uploads 20 hours of new video clips per minute: and increasing! Our kids (and many globally) learn whatever they want to on their mobile devices. In poor countries, they then use social media to organize protest-riots.
Continue reading 5. Your 2020 Company Plan
The news on AmazonSupply.com (AS) will continue to accelerate. AS has recently increased its items for sale into 17 (and climbing?) “vertical” distribution channels in pursuit of “business-to-business” (B2B) sales. On May 8, 2014 Forbes Magazine published an article: “Amazon’s Wholesale Slaughter”, which was long on short-term hype, but short on long-term vision.
Because Amazon (AMZ) is the most: innovative and channel-changing juggernaut ever, what we see today at AS is just a beginning. Their mission statement suggests more to come: “to sell everything needed to rebuild civilization”. How will AS pressure your 100-year-old channel’s service-model and rules? What other right, best questions about AS have you written down to think about?
Continue reading AmazonSupply (AS): New Competitor and Role Model