| hat a year! While industrial conditions improved a hair | | | | again and the demand chain will begin to churn. firms |
| for some of us most distributors didn't fair so well. | | | | will need to be mindful of return on investment. |
| However , all prospects - the so-called'experts' | | | | Visibility to info within your company will need to be a |
| envision growth in 2010. But guess what? That | | | | key focus for distributors in 2010. Investing in tools |
| expansion is predicted for the global economy, not | | | | that help you to see your business better, will lead to |
| North America. So hang on to your hats people - | | | | better buying calls - with better payback. |
| here is what we saw in the distribution market space | | | | Instead of 8 makes of toothbrushes they reduced |
| this year and our predictions for 2010. | | | | their offerings to 3. We saw a number of makers |
| Of course cutting inventory was also a direct result | | | | and distributors lose trading partners this year and for |
| of decreased demand that impacted the whole | | | | most that trading partner was more than 40 percent |
| supply chain - purchasers were not buying. Retailers | | | | of their business ( yikes ). |
| consolidated their offerings, squeezing out many of | | | | Staying competitive, noisy, and alert with clients will |
| their suppliers. They bought less from distributors | | | | be intensely valuable in 2010 as we think this carving |
| who bought less from makers who responded to | | | | plan will continue to cause problems for suppliers. |
| consumer demand by manufacturing less. Now that | | | | Staying competitive and retaining your customer base |
| retail inventories are so low after the vacation | | | | means not being a difficulty vendor. Investments in |
| season there are fewer'After-Xmas' sales to be had | | | | areas like EDI, warehouse management, and demand |
| by consumers it's a dangerous cycle isn't it? | | | | planning can provide you with competitive advantage |
| Inventories have been historically low since the | | | | in the shape of more perfect orders - which ends in |
| summer of 2008 and as demand increases ( we | | | | ecstatic and long lasting shoppers. |
| already saw a 3 p.c. Handling your inventory is going | | | | Did you notice new product launches in the Food & |
| to be key this year - you would like to plan based | | | | drink industry touting'whole wheat','natural','organic' |
| totally on demand, taking care not to overdo it. | | | | and even'certified-organic'? In CPG we saw |
| Demand planning and visibility to your demand chain | | | | importance on products that were packaged in |
| will be scornful this year. | | | | brown'natural','recyclable' paper. These products |
| Technology spending just about came to a halt - as | | | | weren't neccessarily fresh product launches, but |
| did other non-essential spending classes like hiring, | | | | repackaged to support new markets. We saw an |
| bonuses, hardware, selling, etc . Many staff, excluding | | | | increased concentrate on good-for-the-environment |
| bank operatives, took pay cuts or failed to receive | | | | items like biodegradable garbage bags, kitty litter, and |
| income increases ( for some this was their second | | | | so on. As long as there is demand this trend will |
| year without an increase ). The only software sector | | | | continue into 2010. Products will become more |
| that experienced growth this year was CRM. | | | | compact that has been a great strategy for some |
| Banks are loosening their purse strings that will lead | | | | distributors to maximise shelf space, and reduce |
| to better cash flow for corporations. As more cash | | | | shipping, handling, and stocking costs. |
| becomes available, distributors will start to spend | | | | |