Industrial Distribution

Link This | Email this | Blog This | Comments (1)

BLOG August 08
August 27, 2008

As the Innovator in Residence at Saint Louis University, I love to talk about how people are doing things better and differently. On September 16, I will participate in an Industrial Distribution webinar looking at innovations in distribution.

There is so much going on; it is hard to pick any one topic. Let me focus a paragraph or two on an interesting confluence of ideas.

“Green” is reaching a new level of recognition at the same time oil prices have hit record highs, and gasoline is finally at a level that is changing many old habits. Here is the perfect opportunity for all of those distributors who feel they have to offer free shipping to stay competitive.

No one can afford to continue doing business the old way. Not only is fuel way up, but so is inventory, insurance, vehicle maintenance and the cost to load and unload product.

You have to increase prices to cover this or start charging for the services people use and value. Then make money on the extra revenue by implementing routing software to take advantage of the most efficient driving plan. Add a fleet monitor to know when maintenance is required by tracking gas mileage. Then set up check lists to keep tires at the proper pressure, air filters clean, and consider driving lessons to increase miles per gallon.

We can all innovate. All it takes is a willingness to change the way we have always done it.

Posted by Steve Epner on August 27, 2008 | Comments (1)