When I started my career in industrial sales more than 15 years ago, some of the distributors I worked with generated their strategic initiatives through internal brainstorming, sales force feedback and common logic.

Distribution management closely monitored competitors and attempted to keep up or stay ahead by adding more people, more inventories, more product lines and more infrastructure. They took a speculative strategic approach to positioning their business for success.

The belief was that by having the most to offer, they would remain dominant in a given market.

Manufacturing, not only in the United States but globally, has undergone a metamorphosis over the past 15 years. Initiatives such as just-in-time, lean manufacturing, Kaizan and Six Sigma have been a driving influence for nearly all industrial suppliers to rethink and often reinvent how they go to market.

As customers grow more efficient through process management initiatives, they also become more discerning in how they select the vendors with whom they will do business. Tightly controlled, process-oriented firms require business partners who are in synergy with them.

The process improvement initiatives prevalent in the current manufacturing environment all begin and end with a common focus: the voice of the customer. New product initiatives, delivery expectations, payment terms, sales force skills sets, and inventory mix are all part of the value proposition that any given distributor brings to the market.

To be competitive, distributors, vendors and end-user customers must be in alignment to ensure that the value delivered is consistent with the end user's expectation. In today's business climate, this also means distributors must maintain a level of organizational agility to ensure their business is able to adjust and stay in tune with the changing needs of the customer.

In INDUSTRIAL DISTRIBUTION's 60th Annual Survey of Distributor Operations, distributors listed their top 10 concerns going into 2007. Price competition, operating costs, distributor competition, manufacturers selling direct, and integrated supply were all among the top concerns.

This is not surprising. End users continue to consolidate their lists of preferred vendors and increasingly are focused on partnerships with suppliers who hear their voice and align their value proposition to the customer's needs.

Distribution plays a vital role in the supply chain. However, that role has always been one of value enhancement. Distribution earns margins—and growth is achieved—when end users recognize the value proposition of the distributor.

The industrial sales landscape is dynamic and will continue to evolve. Listening to the voice of the customer and having the agility to adjust will be necessary for growth and sustainability going forward.

The term “paradigm shift” is most easily defined as a change in basic assumptions within a prevailing theory. It is often used to denote the move from one concept or way of thinking to another.

The key to remaining competitive is knowing when and how to adjust your organization to the needs of the customer. By seeking the voice of the customer and driving your business by it, you will ensure that your organization is well positioned to be the preferred supplier.