Industrial Distribution

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Are industrial distributors innovative?
February 8, 2008

Continuing with my focus on innovation, I want to ask a question:

"Are industrial distributors innovative?"

Certainly, we still have many similarities to the original peddlers who wondered across the country in centuries past. But there is a lot of new as well. So, are we an innovative industry?

As with most questions, it depends on your point of view. Obviously, much of what we do has changed considerably in the recent past. Consider the advances people like Jon Schreibfeder have made in inventory control. They have changed the fundamentals of a key element of the business.

Yet when I look at individual distributors, I am always amazed at how few are taking advantage of the proven technology and other opportunities that are available.

The last time I dealt with this question, Dr. Julia Kalish at Purdue University set me straight. She had the most difficult assignment of helping me (and many other candidates for advanced degrees) open my mind when formulating research questions. I wanted to write about the vast numbers of distributors who did not use the available technology they knew could improve their businesses and how we might help change their minds.

She asked me if I understood the value of exercising every day. After discussing the question and leading me down the path, she asked if I did indeed exercise every day. Of course the answer was no. Then I started giving her the excuses and explanations. It was embarrassing.

We all know there are things we can do to improve our operations. We know that others are doing similar things with well-documented, positive results. We all have a million excuses why we are different.

In the case of industrial distribution, the question is not can we innovate—the answer is YES we can—but why we do not use proven methods that have little or no risk. Many companies are not ready to break new ground; they can improve every day, utilizing proven capabilities, without innovating anything new.

Here is what I recommend. Look at yourself. Look at your company. Ask why you are not using the capabilities that are available. Once you can answer that question, you can work on finding the solution. Then you can ask about innovating.

Posted by Steve Epner on February 8, 2008 | Comments (3)