Advice for CEOs

In the first part of this article, I discussed some approaches to the challenges that distribution companies face in the era of the Internet: specifically, thinking like a buyer and using planning tools. I would like now to suggest several other techniques for wholesalers/distributors to create value.

Distribution companies face challenges in the era of the Internet. Any business that is perceived to be a “middle man” is under pressure to show that it creates value in return for the (typically thin) markup it earns on each sale. The Internet has increased this pressure: Amazon and other e-commerce sites offer companies and consumers an enormous variety of goods with a few clicks of the mouse. In this first part of a two-part article I will explain practical steps that wholesalers and distributors can take--to grow and succeed.