Featured Paper
Conquering Cost and Complexity Through Advanced Warehouse Management Solutions
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Manufacturers and distributors are under severe pressure to increase the productivity andperformance of their warehouse operations in the face of growing costs and complexity.
Some companies, however, are recognizing this warehouse management challenge as anopportunity to strengthen their competitive market positions.
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Featured Event
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Typically, summers' end does not bring much joy, but this year, we have something to look forward to-- Distribution Industry Expert Grant Howard will return for more Jammin' with Grant at the end of the summer.
Send us questions or topic requests you have for Grant to JamminwithGrant@DistributorsEDGE.com, and we will incorporate them as best we can. Stay tuned for more details on the next Jammin' with Grant session.
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Upcoming Events
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DE and Infor Events July 14: Webinar: DQ Tech for A+ and SX.e
July 20: Webinar: SX.e Town Hall
See the DE Events page for more info on the above events. ***
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IT Survey
As seen on MDM.com and according to
RSM McGladrey's fourth annual Manufacturing and Wholesale Distribution
National Survey, distributors are still seeking ways to cut costs.
While this is understandable given the state of the economy, slower
times create a prime opportunity to implement new practices and
systems.
What are your thoughts on the role of technology in the current economy?
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Take our survey and find out what your peers are saying.
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Popsicle Stick Jokes |
Remember the good old days of Popsicle stick jokes? Not usually the funniest jokes, but always a nice treat after that favorite childhood summer snack.
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Reminisce with some of these classic Popsicle Stick Jokes:
Q1: When is a theater clumsy? A1: When the curtain falls
Q2: What's a cat's favorite button on a VCR? A2: Paws
Q3: What's the hardest thing about skydiving? A3: The Ground
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SX.e Users Play Summer Word Trivia
Can you determine the two different summer words we are hinting at?
Please e-mail responses to SXeJeopardy@DistributorsEDGE.com.
Word #1 Clue: When spelled in capital letters, this 5-letter summer activity is spelled the same front and upside down.
Word #2 Clue: This 5-letter water vessel is spelled the same front and back.
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Good luck! |
April 2009 Distribution Jeopardy Answer
Unfortunately, we had no winner for our April 2009 Distribution Jeopardy question. The good news is, that's more "I'm too SX.e for my mug" mugs for this quarters' winners!
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April 2009 Question & Answer A: The first product to have a barcode scanned
Q: What is a packet of Wrigley's Gum?
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On the EDGE Summer 2009, Volume 2, Issue 3
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Welcome to the Summer 2009 issue of On the EDGE.
No matter what latitude in which you find yourself, it's officially summer, and that can only mean one thing-- it's time to shape up! Instead of attempting the latest fitness trend, focus your energies on keeping your warehouse(s) lean!
Jogging a few miles is challenging, but running a lean distribution business is an even more strenuous and complex task. In this issue, hear from Howard Coleman, Principal at MCA Associates, and get "Lean Now, Lean Forever." According to distribution expert Dr. Adam J. Fein, the worst is behind us, despite Q1 of 2009. Now more than ever, we must cut the fat! With some help from our favorite distribution experts, like Rich Schmitt and Grant Wickes, your organization will be the desirable pin up of distribution centers worldwide. Plus, get a leg up on the competition by capitalizing on the new tax breaks in the American Recovery and Reinvestment Act.
Taking a different kind of break, Jammin' with Grant is on summer hiatus but will return soon. Below, find a brief summary of Aprils' session and a link to the recording and slides. Stay tuned for more info. In the meantime, take our distribution poll and find out how your thoughts on the importance of IT compare to those of your peers.
We hope you enjoy the summer-hit the beach (lakes or oceans will do), go for a hike, eat ice cream, host a bbq or picnic, get out on the links, or catch one of this summers' many new sure to be Blockbuster sequels! Need some extra summer fun, check out our throw back to the good old days below-Popsicle Stick Jokes! Or take a stab at our Summer Word Trivia.
Most importantly, be sure to stay tuned for more information on our next Jammin' with Grant series!
Surfs up, The DE Team

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Jammin' with Grant Wrap Up
Grant Howard is an internationally recognized expert and major contributor in the design and implementation of "Best Practices" Inventory Management and Replenishment Systems, Operational Excellence, and Systems Utilization. He has multiple company experience in inventory management, purchasing design, operations, problem solving, procedure preparation, and systems administration. Mr. Howard has assisted a number of multiple branch distributors and distribution software houses in the design, education, and implementation of procedures, software packages, and the use of current technology concentrating on inventory management, replenishment, operational efficiency, and system utilization, which result in fantastic customer service, bottom line, and growth improvements.
On Wednesday April 8, 2009, distribution expert Grant Howard hosted Distributor's EDGE clients for an hour-long webinar. Entitled "Surviving or Thriving in Difficult Times: Maximizing Profits and Staying in Business Forever," the complimentary session was the final in a four part quarterly series. However, stay tuned for more information on our next series, which is scheduled to begin at the end of summer.
In this session, Grant borrows techniques from his previous three webinars to help distributors address the current economic climate. Focusing on the need to thrive, not just survive, the present economy, Grant centers on the importance of retaining customers and maximizing profit. As business professionals, we want longevity, growth, and profitability, so as distributors, we procure, we warehouse, and we sell.
Grant suggests the way to thrive is through better service, not cutting costs. Therefore, when we swing into the economic upturn, you are ahead of your competitors. But the question is, how do we maintain, or even improve customer service, without cutting costs? Don't drive your customer into the hands of your competition. Listen to "Surviving or Thriving in Difficult Times: Maximizing Profits and Staying in Business Forever" and keep your customers coming back for more.
Check out the session here. |
The Wholesaler: Learn Now, Lean Forever
A RESPONSE FROM HOWARD COLEMAN Principal of MCA Associates
During this current economic turbulence, companies are looking for ways to reduce operational costs and, at a minimum, maintain competitive advantage, or maybe even provide competitive advantage opportunities for the future. The concept of Lean Thinking and its associated methodologies, sometimes just simply called "Continuous Improvement," is now making its way through non-manufacturing organizations, and as it transitions, it offers an opportunity for a significant break-through in how management looks at and handles the reduction of "waste" - meaning excess steps, processing, costs, etc., in all aspects of its operations. But, in discussing it, it is important to keep in mind that the concept of "Lean" is not meant to be a "one-time" event or just applied during the "bad times." That's the significance of the term: "continuous improvement." So, having worked with wholesale-distributors over the years, facilitating their "Lean Initiatives," I found that each company, as they began, was surprised by several different factors that in total comprised a "common thread" that ran through their experiences. I think there is great value in reviewing these before we go on any further...
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Distribution Trends: A Bad Q1 for Distributors, but the Worst is Over
BY DR. ADAM J. FEIN Wholesale Distribution Industry Expert
The recession is not over, but we are at (or near) the bottom. Time to start getting ready for the emerging risks associated with the coming economic recovery.
The first quarter of 2009 was horrible for wholesaler-distributors. The chart below shows the change in revenue from Q1:2009 compared to Q1:2008 - the raw numbers as well as the real (inflation-adjusted) figures. These data are not seasonally adjusted, making it easier to compare with your own companies. See the latest Wholesale Distribution Economic Reports for a definition of each sector.
While my 2009 outlook for many wholesale distribution sectors has worsened, we are still on track for recovery in 2010. The latest economic data show that many sectors are either stabilizing (or merely getting worse at a slower rate). However, consistent year-over-year growth will not return until...
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The Wholesaler: Give Your Customers a Good Experience and You'll Give Yourself Good Customers
BY RICH SCHMITT Management Specialist When
I was a kid, one of the cigarette companies developed an ad campaign
stating that people would walk a mile for their brand. The implication
was that people would walk a mile (in the hot sun), passing up
opportunities to buy competing brands just to buy their brand. While I
do not, in any way, recommend smoking, I do like the idea and think it
really applies to our industry. As you know, there are a bunch of
wholesalers in the market these days. In the past, there was lots of
business to go around so the market had these same competitors, but it
just didn't seem quite so crowded. Now that there are other wholesalers
trying to eat your lunch, it is critical to take stock of your
operation and to see if your customers would walk a mile to do business
with you.
In
many cases, wholesalers became lazy during the boom times and got
accustomed to taking orders with very little real selling. In the
process, they lost some of the skills and operating procedures that are
a part of creating a differentiated company. So now is the time to
rekindle the selling and operational "fires" with the sole purpose of
earning more business from your current and prospective customers. In
the end, you want customers who will walk an extra mile to buy from you
or maybe drive an extra five miles to one of your locations.
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Small Business Trends: Uncover Thousands in Savings, Hidden in Your Inventory
BY GRANT WICKES
When sales drop and budgets get tight, small businesses begin
desperately seeking ways to cut costs. The options, however, are not
attractive. Cutting people is painful, while slashing marketing has
devastating long-term effects. Surprisingly, there's an answer to this
problem right within a business owner's four walls: inventory.
Inventory encompasses everything from products to raw materials and
even office supplies. Best of all, it represents a wonderful
opportunity to save money.
Let's face it, inventory isn't glamorous. It's bought
indiscriminately, and when business is booming, there's no need to
worry about it. Right now, however, inventory languishing in a
warehouse, shelf, truck, or supply room serves as a painful reminder of
the overly exuberant past.
Fortunately, by acting now to improve inventory management, business
owners can positively affect the bottom line in more ways than one... Click here to continue reading.
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The New Yorker: Hanging Tough
BY JAMES SUROWIECKI
In the late nineteen-twenties, two companies-Kellogg and Post-dominated the market for packaged cereal. It was still a relatively new market: ready-to-eat cereal had been around for decades, but Americans didn't see it as a real alternative to oatmeal or cream of wheat until the twenties. So, when the Depression hit, no one knew what would happen to consumer demand. Post did the predictable thing: it reined in expenses and cut back on advertising. But Kellogg doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies. (Snap, Crackle, and Pop first appeared in the thirties.) By 1933, even as the economy cratered, Kellogg's profits had risen almost thirty per cent and it had become what it remains today: the industry's dominant player.
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