This study of key trends and issues facing professionals in wholesale distribution through 2008 forecasts a changing world where competition increases, customers become more demanding, and manufacturers exert more control.
The report was complied by the National Association of Wholesalers-Distributors (NAW) and Pembroke Consulting.
Facing the Forces of Change covers the perspectives of buyers, contractors, customers, manufacturers, and retailers. In addition, it discusses and analyzes the future of logistics and fulfillment, emerging trends, and fee-based services.
The wholesale-distribution industry makes up 7 percent of the U.S. gross domestic product, with sales totaling $2.9 trillion in 2003. With this substantial influence on the U.S. economy, the NAW believes "wholesalers-distributors face a future in which the realities for the business environment differ from the past, in novel and challenging ways. Some of these forces will be familiar, while others may just be emerging in your line of trade. However, our research suggests that all distributors will feel the impact as these forces gain critical mass throughout the supply chain."
The survey covers key trends such as customer self-service, strategic sourcing, fee-based services and pricing, and logistics and fulfillment. Also, the report analyzes and suggests future issues to consider that apply to the following areas: customers, competitors, and suppliers. Some of the challenges facing managers will include customers wanting instant information, and the erosion of the perceived value of the sales force as customers become more confrontational and demanding. In the area of logistics, companies will become a greater competitor to the wholesaler-distributor as they pursue alternative channels along the supply chain. And, finally, manufacturers will be more aggressive in managing contracts by steering away from open distribution and becoming more selective.
Most of the advice and tools aim to help business professionals adapt, overcome threats, and take advantage of opportunities.
The NAW conducted surveys and in-depth interviews with senior executives and leaders throughout the sector.— S.J. Johnston