Jason Bader is the managing partner of The Distribution Team, a firm that specializes in helping distributors become more profitable through strategic planning and operating efficiencies. The first 20 years of his career were spent working as a distribution executive. Today, he is a regular speaker at industry events and spends much of his time coaching individual distribution companies. For more information, call (503) 282-2333 or contact him by e-mail at Jason@Distributionteam.com. Also visit The Distribution Team’s website at www.thedistributionteam.com.
Over the years, I have had the opportunity to work with hundreds of organizations in several vertical markets. I can say this one thing about all of them: They each have a unique language when it comes to describing the products resting on their shelves.
As we all know, somewhat painfully, most hardgoods distribution results in a net profit percentage of 5 percent or less. Yes, there are some of you rock stars who roll into the high single-digit percentages but most privately held distributors are known for a bit more humble results.
Over the past several years, I have focused on helping distributors become more profitable than they ever thought possible. In this mission, I realized how important the operational managers are to the success of the organization.
There will always be reductions in the bottom line as infrastructure is built. The real test of a company is how it manages the investment period. Profit is great but don’t neglect investment in your people, technology and inventory.