The secret to longevity
Dedicated employees and strong channel partnerships are main routes to survival
By W.R. Ziegler -- Industrial Distribution, 1/1/1999
When our company marked its 50th anniversary last year, we celebrated a personal and corporate milestone. It's not every day an industrial distributorship turns 50 -- especially in this age of consolidation. But longevity is possible for the small, independent distributor -- it just takes hard work and determination.Of course, there is more to it than that. To survive and thrive over the years requires strong channel partnerships, dedicated employees, technology that enhances productivity, strong leadership and the cultivation of a niche market. As a small distributor you must combine all of these for success.
Developing strong channel partnerships is a key part of the equation. And those partnerships are built from within, which means you have to start with good employees. We have been fortunate in that we have accumulated a staff of very loyal and dedicated employees over the years --some have been with us for over 40 years. I started off with the understanding that I would expect from them the same kind of hard work that I was doing myself. And they understood that they would be treated fairly. That hard work and dedication have helped us develop a core of loyal customers, and at the same time allowed us to maintain good working relationships with our suppliers. Together, these three things -- good employees, loyal customers, and strong supplier relationships -- are what have helped keep us in business for 50 years.
These days, of course, distributors must think of a host of other issues. First and foremost are competition and technology. Gone are the days of exclusive distribution. We must compete on all levels, with a host of new opponents -- large national distributors, catalog houses, and local specialty distributors seeking to broaden their own horizons. When we started out 50 years ago this wasn't an issue. Exclusive distribution was common and we had several key accounts that helped us get started.
Technology is an important tool in this new competitive landscape. By implementing new technologies, our company has been able to increase efficiency and productivity. While it's difficult for small distributors to keep up with larger competitors in this regard, it must be done. Processes like EDI, bar coding and even faxing have eliminated much of the telephone calls that used to go back and forth between customer, distributor and supplier. You can be sure that technology will continue to be a challenge as time goes on. Despite that challenge, distributors must keep doing the things that will make them more productive and more efficient.
Distributors must weigh these concerns against the more traditional issues of running a business. One of the most important issues, we've found, is keeping control over inventory and accounts receivable. Doing this takes teamwork among managers and is essential to the distributor's survival. Another essential practice is putting money back into the business -- this is perhaps the best way to make sure that what you have started will continue to flourish.
These strategies have worked for us for 50 years. And we plan to continue what we've done and work even harder at it for continued success. It isn't easy, but with hard work and determination it can be done.
-- W.R. Ziegler founded Ziegler Tools in Atlanta, Ga. in 1948. He now serves as chairman.
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