As electrical distributors launch, or prepare to launch, their eCommerce sites, they need to be aware of a key customer dynamic that is changing...the expectation of accuracy. While many have talked about Amazon Business being a key competitor (or threat), their biggest impact may be on customer expectations ... and the expectation that the inventory information on the website … [Read more...] about Amazon Business Isn\’t the Greatest Threat, Customer Expectations Is
Profitability
Does your warehouse make you money?
There are two ways to make money. Either you sell more material / services for a profit or you need to reduce your loss (operating costs) in your warehouse (support services). The only ways to make your warehouse a profit contributor is to reduce costs by reducing people, reducing delivery costs or increasing output without increasing expenses. Alternatively you can seek ways … [Read more...] about Does your warehouse make you money?
Service Agreements / Extended Warranties – Revenue Generator & Potential Differentiator
Distributors have been seeking opportunities to generate, or increase, their service revenue. While traditionally a complementary service for industrially-oriented distributors, construction-oriented distributors are also seeing opportunities. Some distributors have defined revenue goals, others look at this opportunistically (or give the service away to capture the product … [Read more...] about Service Agreements / Extended Warranties – Revenue Generator & Potential Differentiator
Channel Marketing and Funding … but for eCommerce Initiatives?
The essence of “channel marketing” infers that members within a channel (manufacturer, rep and distributor) are working together to market products, services and applications to generate demand from customers. The term doesn’t infer whom funds the initiative but frequently there are co-marketing, and hence co-funding, initiatives. At times this is co-op, perhaps MDF or other … [Read more...] about Channel Marketing and Funding … but for eCommerce Initiatives?
Increasing Warehouse Accuracy in an Age of Employee Churn
In talking with senior management and HR managers of distributors, a continual challenge is personnel. While frequently these discussions relate to qualified (industry or skilled) personnel for sales, branch management and/or specialists, a frequent comment is the \"churn\" that they experience in their warehouse as well as with their drivers. Low unemployment and the reality … [Read more...] about Increasing Warehouse Accuracy in an Age of Employee Churn
GM Leader Drives Cultural Change, Innovation and Results
General Motors (GM) historically has been known as a \"staid\" company and the prototypical \"old boys\" company. And its had its share of \"challenges\" ranging from uninspiring design to consumers feeling there was \"built in obsolescence\"; from being extremely difficult to sell to due to its purchasing philosophy to the ultimate disaster ... being the face of the automotive … [Read more...] about GM Leader Drives Cultural Change, Innovation and Results
When Service and Profit Counts
Last month Dick Friedman shared some ideas on how to ensure sales operations and customer satisfaction. Distributors know that operations is the key to profitability. This can relate to managing what sales is allowed to order to ensure they don\'t inadvertently decrease organizational margin on selected margins to making sure that pickers pick what they are supposed to and … [Read more...] about When Service and Profit Counts
Tips to Ensure Sales Operations and Customer Satisfaction
Operations is the lifeblood of a distributor as it delivers upon sales\' commitment of getting material to the customer. And at the end of the day, distribution, and customer satisfaction, is about getting the right material to the customer when and where they need it. While technology can frequently improve processes, enhance efficiency, perhaps be more cost-effective and … [Read more...] about Tips to Ensure Sales Operations and Customer Satisfaction
Can You Afford Declining Margins?
2016 seems to have been the \"year of pricing\". A number of distributors either discussed, or undertook, pricing initiatives this past year. In many instances it was a desire to reverse an industry trend ... eroding margins. Others recognized that if they invested in eCommerce they needed to ensure that the price shown on their website was the same that the customer received … [Read more...] about Can You Afford Declining Margins?
Do Vendor Published Rebate Programs Drive Decisions?
Rebates are a fact of life and the first marketing group rebate negotiation, in 1968, was designed to capture incremental revenue (for a wire company) with the distributors collecting the funds for a social engagement. But the core issue was the manufacturer sought growth / increased market share. Vendor published programs such as Legrand\'s Cornerstone program, Leviton\'s … [Read more...] about Do Vendor Published Rebate Programs Drive Decisions?
