229. Distributors Create a 3PL, Systems Division

Distribution Industry Sales, Index, Service Value Innovation Guidelines

Why Do Distributors Economically Exist?

Most “merchant” distributors cannot answer this question effectively. So, they fear the unknown, economic boundaries for:

  1. Suppliers selling more customers direct.
  2. Suppliers selling (partial) lines through Amazon.
  3. Integrated Supply distributors taking over their biggest accounts.
  4. Digital disruptors stealing both spot and big, commodity orders with lower prices.

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228. Disrupt Your Own Business and Selling Models in 2021

Core Renewal, Index

Survey: 80% of McKinsey Clients Fret Business-Model Risk

So much for global-2000 CEOs. What are distributor CEOs thinking?    

  1. What percent of distributors – with commissioned, field-sales reps- have business-model worries?
  2. What percent believe the results (from multiple surveys) that: a majority of millennial B2B buyers don’t want regular sales calls; or, to pay for them in higher prices?  
  3. How many CEOs are “well-informed” about their key suppliers’ plans for: digital engagement of end-user customers along with new, omnichannel journeys for them?
  4. What are the dis- and re-intermediation realities of suppliers’ digital plans?

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227. In 2021, do the Numbers, Strategy and Catalytic

Core Renewal, Index

Beginning of the year Planning Questions:

Does your firm set target “numbers”: budgets and financial, in the form of “stretch” goals?

  1. If so, what will you do differently to fill the stretch gap? And, any specifics for digital transformation necessities?
  2. Will your “strategy changes” threaten the status quo? Or,
  3. Will they fine-tune what you know and have been doing?
  4. Will debates be only about choosing and prioritizing the type of lipstick or dresses to put on the same old activity bundle?
  5. Has this process achieved stretch goals in each of the past five years?

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226. Your VP for Customer-Value-Innovation’s Questions

Concierge Customer Service, Index

High-ROI, Sales-Management Calls?

You should only make calls:

  1. With top caliber reps who can: listen, take notes and follow with extra, new tasks.
  2. On three, high-leverage types of accounts.
  3. With the goal of taking all three groups – profit-core, target and big losers – to a next level by collaborating with the customers on improving how they buy.

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225. New Business-Models for Post-Corona?

Distribution Industry Sales, Index

Mask-Free, Likely Date: November ’21!

At Mckinsey.com, take a look at their 11/23/20 “Insight” entitled: “When Will the Covid-19 Pandemic End?” Given the recent vaccine news, their back-to-new-normal date is one year out – 11/21 – along with other less-probable-scenario dates. By 11/21, what new business-models must distributors have in place considering these…

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