One of the biggest components of customer service is having the right stuff at the right place and at the right time. Use your distribution software package to ensure your customers’ most-used items are well-stocked.
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.