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Webcast details future distribution strategies

Staff -- Industrial Distribution, 11/1/2001

Newton, Mass.—Nearly three hundred viewers glimpsed the future of distribution during an Oct. 10 Webcast highlighting the National Assn. of Wholesaler-Distributors' "Facing the Forces of Change" report.

The hour-long broadcast sponsored by NAW and Industrial Distribution detailed future scenarios for the distribution marketplace, based on a study conducted by Pembroke Consulting. The Webcast will be archived on www.inddist.com through next fall and may be viewed for free. More than six hundred people registered and 282 participated live.

The interactive broadcast featured Adam Fein, president of Pembroke Consulting, distribution management consultant Michael Marks, president of Indian River Consulting Group, and Jack Keough, editor of ID. Marks and Fein described four leading scenarios or strategies for the future, and answered some of participants' questions. The scenarios include:

"Bricks and clicks" — success for distributors that fully integrate technology into their companies and solidify their role as the primary route to market for manufacturers.

"Coordinated channels" — when suppliers and distributors use the Internet to collaborate for product, marketing and inventory management.

"Unbundled supply chain" — when customers and manufacturers pay only for the specific supply chain and marketing channel activities they require.

"Common platform" — marketing and distribution strategy for interacting with online exchanges established by groups of large customers.

The report, which intends to help companies prepare for uncertainties in the distribution marketplace, may be ordered at www.naw.org.

Several polls were conducted during the broadcast. Here are two:

1. Will distributors have to charge "fee for service" instead of bundling services "for free" into product prices by 2006?

  • Likely—53%
  • Not sure—28%
  • Not likely—30%

2. What will be the most common way for customers to send orders in 2006?

  • Online (including intranet, extranet or EDI)—64%
  • Answered in person (with sales rep, or walk in)—4%
  • Answered phone or fax—33%

*Figures are rounded to the nearest whole number.

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