| Wow - what a year! While commercial conditions | | | | must be mindful of return on investment. You can't |
| improved a hair for many of us most distributors | | | | manage what you can't see or measure. Investing in |
| didn't fair so well. However , all suggestions - the | | | | tools that help you see your business better, will lead |
| so-called'experts' predict growth in 2010. But guess | | | | to better purchasing choices - with better payback. |
| what? That expansion is predicted for the world | | | | Rather than 8 makes of toothbrushes they reduced |
| economy, not North America. So hang on to your | | | | their offerings to three. This plan helped them clear |
| hats people - here's what we saw in the distribution | | | | desirable shelf space so they could supply a more of |
| market space this year and our predictions for 2010. | | | | the products that are top sellers. We saw a number |
| Naturally cutting inventory was also a direct result of | | | | of makers and distributors lose trading partners this |
| reduced demand that impacted the whole supply | | | | year and for many , that trading partner was more |
| chain - clients weren't purchasing. Outlets consolidated | | | | than forty percent of their business ( yikes ). |
| their offerings, squeezing out many of their providers. | | | | Staying competitive, pushy, and attentive with clients |
| Now that retail inventories are so low after the | | | | will be very valuable in 2010 as we think this whittling |
| holiday season there are less'After-Xmas' sales | | | | strategy will continue to cause problems for |
| available by consumers it is a vicious cycle isn't it? | | | | providers. Staying competitive and retaining your |
| However all suggestions from the market predict | | | | customer base means not being an issue seller. |
| that demand will come back - it is like the circle of | | | | Investments in areas like EDI, warehouse |
| life. Inventories have been traditionally low since the | | | | management, and demand planning can provide you |
| summer of 2008 and as demand increases ( we | | | | with competitive advantage in the form of more |
| already saw a three percent increase in retail sales | | | | perfect orders - which ends in ecstatic and long |
| this year over 2008 ) it'll begin to pull inventory levels | | | | lasting customers. |
| back to'normal'. Managing your inventory is going to | | | | Did you notice new product launches in the Food & |
| be key this year - you wish to plan based on | | | | libation industry touting'whole wheat','natural','organic' |
| demand, being cautious not to go too far. Demand | | | | and even'certified-organic'? In CPG we saw |
| planning and visibility to your demand chain will be | | | | importance on products that were packed in |
| critical this year. | | | | brown'natural','recyclable' paper. These products |
| Technology spending just about came to a halt - as | | | | weren't neccessarily new product launches, but |
| did other non-essential spending categories like hiring, | | | | repackaged to support new markets. We saw an |
| bonuses, hardware, selling, and so on. Many staff, | | | | increased focus on good-for-the-environment items |
| excluding bank operatives, took pay cuts or did not | | | | like biodegradable rubbish bags, cat litter, and so on. |
| receive income increases ( for some this was their | | | | As long as there is demand this trend will continue |
| second year without an increase ). The sole software | | | | into 2010. Products will become more compact which |
| sector that experienced growth this year was CRM. | | | | has been a great method for some distributors to |
| Banks are loosening their purse strings that will lead | | | | maximise shelf space, and reduce shipping, handling, |
| to better money flow for companies. corporations | | | | and stocking costs. |