Confronting The New Economic Environment

Operating in this new economic climate requires new ways of thinking, innovative business models

One of the primary ways distributors create value is by aggregating a diversity of products form multiple vendors and selling them to an often fragmented customer base.  Operating efficiency and product availability are essential to the profitable execution of this break bulk-focused model. 

However, with customer demands increasing and competition intensifying the ability of even the most efficient distributors to rely on this model for profitable, long-term growth has sharply eroded.  The recent economic crisis ushered in a new economic environment, the likes of which distributors are largely unfamiliar with.  In this new environment, predictability and stability will largely disappear, replaced by continued volatility and uncertainty and ever-high levels of complexity.

Operating in this new economic climate requires new ways of thinking, innovative business models, and creative leadership.  From the assets they own, to the services they leverage, wholesaler-distributors are entering an extended period of profound transformation.

ACTION POINT:  Adjusting to these changes and capitalizing on new opportunities will be essential for survival in this new business climate.