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MDM has posted a video of the interview with Tom Gale at the DEKAP users conference. The topic ostensibly was AI, but with Gale’s enormous knowledge base, a lot of change transformation was covered. Advice that applies to AI also applies to the entire spectrum of investment in digital tools. There are a lot of nuggets here.

Of note here is what Tom Gale says, and he is not alone, is that AI and other tools level the playing field between large and small distributors. Greater access and lower costs for information whittle away at the competitive advantage of large distributors. Obviously, large competitors will always be formidable ones. But there are encouraging signs that a customized array of digital tools is an investment that creates value regardless of your size.

Dodging the obvious question of what should a distributor invest in first/next, because that answer varies all over the map, Gale did offer reinforcement to the basics: begin cleaning your data. Historically this has been first on the supplier side and then on the customer side. This is a readiness issue. Advancement will always be hampered without this readiness.

Then, be strategic. Tie investment to your strategy. And demand that your digital tools create value in specific ways. You can be sure that MDM will be there to offer guidance through research.

KS

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GAO data, injuries to warehouse workers continues to climb - up 20% from 2020 to 2022. The injury rate is approaching 4 out of 100 workers. Blame seems to be placed on the pressure on increasing E-commerce volume on the system. Inadequate ergonomic injury prevention is also cited.

All this means greater regulation - more training and more prevention. Companies will benefit from less lost time - bet at an increasing indirect cost creeping into direct labor rate figures. Material Handling & Logistics provided this update.

KS

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Greg Smith provides pricing insights which point to the need for execution on many tried-and-true oldies while also striving to employ modern data-driven pointers.

His encouragement to execute the oldies follows an impassioned plea to reduce what he believes is a steady flow of loss invoices. Need to eliminate price overrides. Need to have customers pay when they have high service levels. When they are a slow pay. Need to be fanatical about pricing nonstock items, especially low-cost ones. Need to crack down on Special Pricing Arrangements.

We know these things, but have to be reminded of them. What is changing is is what Smith calls “good-better-best” pricing which allows some judgment. Today this gives way to data-driven pricing with sales team support. If we have the data, we can profile the customer’s willingness to pay - and let’s find the specific conditions that instill this willingness. That is the new wave. And yet it has an odd connection to years ago in what the original NAW Facing the Forces of Change called a “niche of one.”

The Distribution Strategy Group stands ready to help on data-driven pricing with its research. Consider looking at their tools for measuring Customer Satisfaction and Demand.

KS