Just a few short years ago, the Internet was viewed as the biggest threat to industrial distribution. There were fears that the Internet would ruin the relationship between buyer and seller. Terms like "disintermediation" were constantly heard at conventions and seminars, while some industry experts predicted that online buying would lead to the end of the outside salesperson.

Now that the smoke has cleared, it's become apparent that the Internet is nothing more than a tool for distributors and their trading partners. Distributors today are trying to recruit, hire and retain more outside salespeople than ever before, particularly those with technical expertise. In fact, the role of the outside salesperson has never been more important.

The expected backlash of buyers using the Internet to eliminate distributors hasn't happened, at least to any great extent. Sure, some buyers are using the Internet to acquire products through reverse auctions and the like, but distribution seems to have adapted to the changes the online marketplace has brought. A distributor in Toledo, Ohio, tells us that he was able to source a rare type of bearing for a potential customer by surfing the Net. The end result: a new customer.

In addition to selling and acquiring products from the Web, some distributors are taking advantage of the Internet to sell surplus goods. The Chicago Tribune recently reported that some small businesses are listing industrial products on ebaybusiness.com. The newspaper pointed out that one distributor of drills and other industrial cutting tools finds that the site is a new sales channel. The distributor reportedly is bringing in sales of $7,000 to $10,000 per month for its surplus products, along with a substantial profit margin. Another equipment company, which provides accessories for lift trucks, sells about 15 pieces a month, averaging $5,000 per sale, the newspaper reported.

Other distributors tell us that they're getting rid of inventory by selling surplus items on their trade association's Web sites. NAHAD-The Association for Hose and Accessories Distribution, has had a surplus inventory location on its Web site for more than two years. Some NAHAD distributors report success in selling items on the site.

It's clear that, in the long run, distributors who use the Internet to their advantage will be better off than their competitors.

Jack Keough, EDITOR/ASSOCIATE PUBLISHER jkeough@reedbusiness.com