Dorn’s Post

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In the past few years, industrial customers have increasingly relied on self-service and direct sourcing, bypassing distributors for information and purchases. James Dorn and J Schneider highlight significant threats facing traditional distributor business model, including direct selling, marketplace expansion, supply chain vulnerability, and market consolidation. Key Takeaways: - Changing buyer behavior, characterized by self-service and direct sourcing, is reshaping traditional distributor business models. - Direct selling by manufacturers and the proliferation of marketplaces pose significant threats to distributors' market share. - Supply chain disruptions, including logistics companies encroaching on distributor spaces, further exacerbate challenges. - Market consolidation, with larger players gaining dominance, presents additional hurdles for smaller distributors. - To survive and thrive, distributors must adopt modern strategies focused on understanding and serving end customers while evolving to meet changing market dynamics. #DistributionIndustry #SupplyChainDisruption #DirectSelling #MarketplaceExpansion #BusinessStrategy

Mickey Hernandez

CMO at LaceUp Solutions | Helping distribution companies to increase their efficiency and have full control of their operation

2mo

We've written extensively about the challenges distributors face in today's market. This post further highlights the significant threats posed by changing buyer behavior, direct selling, supply chain disruptions, and market consolidation. To remain competitive, distributors must adapt their strategies and focus on understanding and serving end customers. Two pointers: To survive and thrive, distributors must: Understand and serve end customers: Gain a deeper understanding of customer needs and preferences to provide value-added services. Evolve with the market: Adapt to changing market dynamics by embracing new technologies and business models.

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