Every distributor has seen it: return shelves overflowing with parts that came back from a customer, parts that never sold, and parts that are technically inventory but functionally furniture. Returns are the sleeper line item for industrial distributors (and even manufacturers!) They don't show up in the sales meeting. They show up in the margin — months later, wearing a … [Read more...] about The Hidden Tax of Returns: How Industrial Distributors Turn Dead Stock into Cash
Profitability
Can eCommerce Help Your Silver Tsunami?
Noted B2B eCommerce guru Jason Greenwood on his THE ECOMMERCE EDGE (which, if you are in senior management, sales leadership, marketing, or eCommerce you should subscribe) recently wrote about "the silver tsunami" and the opportunity, and role, for eCommerce ... and AI. We've all seen the number of people retiring from the industry. We all look around at conferences and see … [Read more...] about Can eCommerce Help Your Silver Tsunami?
The Most Valuable Feedback You’re Not Reviewing
Every company seeks to improve profitability. While you endeavor to price everything correctly with a goal of achieving the desired margin, there are the inevitable. This why the phrase "sh*T happens" was invented. People are not infallible and most people do not make errors on purpose. Sometimes a typo is a typo. Sometimes mistakes occur because of lack of training or lack of … [Read more...] about The Most Valuable Feedback You’re Not Reviewing
The Industrial Inventory Paradox & Central Surplus Origin
In 2009, my construction company was hired by an MRO and industrial electrical distributor for a warehouse renovation project. The owner knew exactly what he wanted, we were in constant, direct contact. As we built a working relationship, I started asking questions about the mechanics of industrial distribution—the supply chain dynamics, manufacturer relationships, … [Read more...] about The Industrial Inventory Paradox & Central Surplus Origin
Who Has Margin Responsibility in Your Company?
While national chains reported strong growth in Q1, and independents performed comparably based upon our 2026 Q1 Pulse of Industrial Supply report, aided by increased pricing tied to tariffs, commodity price increases that supported manufacture price increases, and industrial end-user performance, the challenge for distributors is that their operating costs continue to rise … [Read more...] about Who Has Margin Responsibility in Your Company?
The 2-for-1 Trap: Converting Dead-Stock into Liquidity
In the industrial supply industry, where organic growth is there but slugg(ish), distributors are increasingly aggressive about “buying support”. This is especially true in unseating competition that operate MRO storerooms or are doing “vendor managed inventory” initiatives for industrial accounts. Market share for distributors isn't just earned like it used to be—it’s bought. … [Read more...] about The 2-for-1 Trap: Converting Dead-Stock into Liquidity
Shedding Light on an Industrial Supply Distributor Problem (or Opportunity)
I come from Ireland, a country better known for its golf, Gaelic, and Guinness than for its distributors. So when Matt Rojas, my dormmate at Stanford, started telling me about his father’s work in distribution, I was fascinated. It was an industry I had never thought about, yet the more I learned, the more it became clear: the U.S. economy quietly depends on … [Read more...] about Shedding Light on an Industrial Supply Distributor Problem (or Opportunity)
Stop the SPA Leak: Don’t Let Margin Slips Away – Free Webinar
Scott Sinning from MarginMax Partners has been sharing ideas to help industrial supply distributors improve their profitability this year with his articles on plugging leaks, using SPAs, and more. Now he's offering a webinar on SPAs next week. The Cost of a Broken SPA If you are involved in sales management, purchasing, finance, SPA administration or have anything to … [Read more...] about Stop the SPA Leak: Don’t Let Margin Slips Away – Free Webinar
Full Warehouse, Empty Wallet – The Surplus Inventory Trap
What can an inventory holder do with excess inventory, why does it happen? In MRO & Industrial, inventory is a double-edged sword; it’s the lifeblood and the weight. With gross margins around 30%, it is pretty attractive, but all distributors have experienced a "just-in-case" order for a critical part turning into five years of dust-collecting deadstock. Looking into … [Read more...] about Full Warehouse, Empty Wallet – The Surplus Inventory Trap
Unlock Margin and Cash Flow Through SPA Enterprise Governance
SPAs, whether you define them as special pricing agreements or ship and debit initiatives, are a way to simultaneously capture business and ensure, perhaps improve, gross margin ... if you manage them right. But like most things, the devil is in the details and, with SPAs, because the administrative process touches so many people within a distributor, many distributors do … [Read more...] about Unlock Margin and Cash Flow Through SPA Enterprise Governance
