Category Archives: Index

234. Automate the Picking of Your Losing, Small-Dollar SKUs

Many distributors assume that they can handle one more warehouse order for free. Aren’t – all warehouse operational-costs fixed in the moment? And, isn’t – keeping people busier good? Alas, no! Let’s look at the cold statistics for a contractor-supply distributor’s monster, Central Distribution Center (CDC).

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232. 15-Year, Margin-Trend Insights for: Grainger, Genuine Parts, Fastenal

Questions & Steps to WOW Charts!

What do the trends for three percentages of sales – gross margin, op. profit, and net profit -do for: GWW, GPC and FAST?

  1. Go to macrotrends.net (cool, free tool)
  2. Search for each of the three companies
  3. For each, select the first option: “revenue”.
  4. Once to the “2006-2020 Revenue” page click on: “margins”.
  5. Then, slide the cursor bar over the trend dots to see how percentages track or don’t!

Continue reading 232. 15-Year, Margin-Trend Insights for: Grainger, Genuine Parts, Fastenal

229. Distributors Create a 3PL, Systems Division

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.

Continue reading 229. Distributors Create a 3PL, Systems Division