Issue link: https://www.e-digitaleditions.com/i/92325
Industry Insights Food for Thought in Uncertain Economic Times Editor's Note: For more than 20 Guy Blissett, IBM Wholesale Distribution Lead guy.blissett@us.ibm.com years, the Facing the Forces of Change report has provided the wholesale dis- tribution community with key insights into the areas of change, trends and best practices with an eye toward helping distribution professionals successfully steer their companies through econom- ic peaks and valleys. When FEDA President BradWasserstromread the lat- est report, Facing the Forces of Change®: Decisive Actions for an Uncertain Economy, he took the research to heart and set out to respond to current trends by rethinking and restructuring key business practices within his own company. "Facing the Forces of Change has given our compa- T he subtitle chosen for this latest Facing the Forces of Change® has proven very appropriate, and perhaps even prescient, as reinforced by the recent McGladrey Distribution Monitor Report. That ny insight into what the distribution world is facing, not just in our industry but in all of wholesale distribution, " he says."The report also has given me clar- ity about trends that, as a leader, I need to be aware of and act upon. Even though it is written for any type of dis- tributor, I found the information to be extremely relevant to our own industry. Taking our cue from the FEDA presi- " dent,News &Views reached out to Guy Blissett, the author of the latest report as well as a featured 2013 FEDA Conven- tion speaker, and asked him to highlight important observations and findings in the summary below. It is the first in a series of three scheduled to appear in the next two issues of News &Views. report noted that only 47 percent of distributors are optimistic about the U.S. economy. It is clear that, as noted in the 2010 IBMCEO Study, uncertainty, com- plexity and volatility are the newnormal and that as a consequence, distribu- tors need forward thinking strategies, agile organiza- tions, and timely insights. What is your maturity level in delivering these capabilities? The first chapter of the latest Facing to pull you away from the day-to-day and dedicate some serious thought to the fundamental change heading your way, says author Guy Blissett The latest issue of Facing the Forces of Change® is designed the Forces of Change report addresses the impact and implications of the new economic environment on wholesaler- distributors.Operating as they do at the epicenter of many value chains,whole- saler-distributors are one of the most 6 FEDA News & Views sensitive segments of the economy.As such, fluctuations in economic activity acutely impact their performance dur- ing both downturns and recoveries. Traditionally, distribu- tors created value for both upstream and down- stream trading partners by efficiently aggregating a broad and deep range of products fromamultitude of vendors,and effectively and efficiently selling them to an often frag- mented customer base. However, the ability of even the most efficient distributors to rely solely on this model for prof- itable, long-term growth has sharply eroded. Services continue to gain in importance, for customer stickiness if not profitability; pricing transparency continues to chip away at margins, and in some cases disintermediation is trans- forming the role of the distributor. continued on page 58