Last month, in our 2008 ElectroIndustry survey, we asked distributors about their 2008 priorities. 23 revenue generating and cost-reduction activities were provided. Distributors scored each activity on a scale of 1 to 10, 1 being not important, 10 being the most important. The average scores reveal where distributors intend to focus their efforts in 2008.
While we expected macro issues such as sales and warehouse productivity to score high, tactical initiatives such as training, price matrices and sharpening small project focus are viewed as critical to success in 2008. These issues tend to address the issues of a quality workforce that helps to differentiate one distributor from another, the need for profitability, and that there are many more smaller projects in any given market that distributors do not typically target.
Training and pricing reviews take time. In an environment where more are trying to do with less, getting the time to address these issues will require management commitment to appropriate resources to generate measurable returns.
On the flip side, while much is made of non-branded / private label products, most don’t see this as a high priority, although it may be a higher priority for sales and purchasing who are seeking lower pricing to capture the business and may be apathetic about a brand. They’re more focused on “buying right” and “closing the deal”. Purchasing agents and contractors want to here Bob Barker’s famous words, “the price is right”.
What are your priorities in 2008?
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