Friday, April 29, 2011

The Expanding Role of Services

Customers and suppliers are demanding more services

One of the most discussed topics in the industry is the expanding role of services.  Services remain both a significant opportunity and conundrum for many wholesaler-distributors.  Structuring and delivering services that customers are willing to pay for remains a massive challenge, measuring the profitability of service offerings continues to confound a great many distributors, and mastering the organizational changes that an expanded services focus requires eludes all but a very few distributors.

Customers and suppliers are demanding more services; increasingly agile competitors stand ready when distributors are unable to deliver such offerings; and with continued pressure on product margins, services represent one of the primary levers for growing revenues and profits.

ACTION POINT: Identify the services that customers demand, especially the ones they are willing to pay for.

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