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The past few years have been
challenging for industrial and construction distribution firms. Increased
margin pressures, customer demands to expand their product and service
offerings, and a shrinking customer base resulting from U.S. manufacturers
moving production to Mexico, China and other parts of the globe were among the
concerns that distributors faced. In this tough business environment,
distributors needed to work smarter than ever
before. Progressive Distributor created the Most
Progressive Distributor Awards to recognize the innovative efforts of
distributors to adapt to changing business conditions, Rather than simply
identity the largest distributors as some lists do. this effort is intended to
acknowledge the hard work being performed by distributors of all types. large
or small, in a variety of market segments arid. geographic
locations. And who can better decide which distributors are
among the most progressive in North America than the supplier companies whose
products they represent? This summer we invited suppliers to nominate companies
they believed were worthy of recognition. We asked them to nominate companies
that consistently submit accurate and complete orders, take advantage of
technical and sales support provided by suppliers, make appropriate use of
marketing funds, share point-of-sale information, have sales staffs capable of
selling value vs. cost, willingly implement new ideas and technologies and
more. Suppliers nominated more than 50 companies for
consideration. From that list, Progressive Distributor selected four
companies to receive this years awards.
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The
2004 Most Progressive Distributor Awards go to: |
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John Day
Company, Omaha, Neb. Horizon
Solutions Corp., Rochester. N.Y. Massasoit Tool Company, Warwick, R.I. General Industrial Tool & Supply, Sun Valley,
Calf. |
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Read on to find out
why their supplier partners belived these companies deserved the title of
Most Progressive Distributor.
 In
today's price-crazed business climate, the only thing customers seem to care
about is finding the cheapest source of supply. Yet Massasoit Tool Company of
Warwick, R.I., succeeds by clinging to a selling style that's becoming a lost
art. "We always attempt to sell value rather than price. Where someone has been
buying a low-end product, we're not afraid to go in after business with a much
higher priced product," says company president Jim Jaques. For
example, this abrasive specialist convinced a manufacturer of metals used in
the rotogravure printing process to switch to an abrasive belt that cost five
times more than the product it previously used. But the higher priced belt also
achieved superior performance, enabling the company to dramatically reduce its
reject rate. The productivity gain far outweighed the cost of the
belts. "On an initial sales call, we say to a customer,'Tell me
what your problem is. That's what we want to focus on. When we can demonstrate
our value doing that a few times, we end up with a pretty loyal customer,"
Jaques says. Mike Marshall, division sales manager for J. Walter
Inc., nominated Massasoit Tool Company for the Most Progressive Distributor
Award because it captures business by working harder than the competition,
not by offering the cheapest price. "They're not just a
procurement agent for the end-user," he says. "They help their customers set
new standards for quality and performance that increase their competitive
advantage and lower the customer's risk. They also demonstrate better than
anyone else the ability to increase their customer's profitability and lower
their total costs.
"New England is a hotbed for
manufacturing of abrasive products. Yet, here's this little company that takes
care of customers so well that people want to do business with them. In
addition, they represent their manufacturers as well as any company I have ever
had the pleasure of doing business with." |