Online order entry seems to be the next big thing in distribution.  Reading the distributor trade press, we are deafened with calls urging distributors to invest in the technology.  For some, the idea makes sense.  But before whipping out the wallet, let’s put some thought into the subject.  All of these experts trot out Amazon, W.W. Grainer and a handful of online retailers as the poster children of how online order entry has changed our world.  No doubt about it, these folks are growing their business at the expense of brick and mortar based organizations.  True confessions here, I am a dedicated Amazon shopper; buying everything from books to dog treats.  That being said, we aren’t talking apples to apples here. I believe most solutions oriented distributors cannot afford to make a play in the “internet store” business.  Here’s how I came to this conclusion: ·          Most solution pro...

Lately the role of the distributor CFO has been on my mind. I see a need for the fundamental role of the CFO to change from staff accounting and backward-focused record keeping to something more powerful. For one thing, the importance of forward looking analytics grows in importance. Caught off-guard by the last recession, many distributors faced financial stress from systems not geared for a 20-30 percent drop in business. Aside from internal analytics, I see need for customer interaction from the financial side of the business. As an example, many of the services distributors provide create massive financial gains for their customers. Few current customer contacts understand the monetary impact of our services. Distributor CFOs must work hand in glove with their counterparts at the customer to lead the charge in establishing reliable financial metrics. I call the position the Attack CFO. I have a couple of articles scheduled to be published on the topic in trade publication...

A week or so ago we reported that the National Association of Electrical Distributors (NAED) had hired a consultant to lead them into the "Green" market. There seems to be a great deal of interest in all things green. This report was listed in today's version of The Electrical Distributor Magazine on-line. CLAMORING FOR GREEN—an April 29 Reuters report, which TedMag stumbled across only recently, noted that “building maintenance supply company W.W. Grainger says…customers are clamoring for the energy-efficient lights, high-efficient water faucets, and even waterless toilets it sells…Grainger’s sales of such products rose 20% in the first quarter from a year earlier, compared with a 7% revenue gain overall, a company spokesman said.” I suspect that distributors in nearly every line of trade are looking for ways to put an energy saving spin onto some of their products.