34•
Master Distribution
Hirsch National Sales on track for long-term growth
(Continued from page 32.)
huge priority for any master distribu- tor, because of the immediacy of need
more efficient and do it all for the least cost.”
“The expectation is that we get better,
when customers call with an order. “If you don’t know what you have on your shelves, you can’t purchase properly, and you ultimately will end up disappointing your customer,” said Malarkey. “We have a pretty in- tricate system of checks and double- checks that helps us wring errors out of the system on the picks and cycle
counts, and that helps keep our error rates very low.” Hirsch National Sales currently
stocks in excess of 25,000 SKUs from well over 100 vendors. And they see that number continuing to grow. “There are only a few ways to sell more — find new customers or sell your existing customers more,” Malarkey explained. “On the sec- ond point, the more we can broaden our offering to become a ‘one-stop shop’ for our customers, the better
•THE WHOLESALER® — JUNE 2011
chance we have of a deeper, mutually beneficial relationship. Also, the mar- ket continues to bring new products and new product lines, filling new niches. And we are proactive in em- bracing that trend.”
Optimistic for the future With more companies entering the
master distribution niche market, it is more important than ever to be at the top of their game. And Hirsch be- lieves that they differentiate them- selves in a number of ways, including: • A wide product offering • Highly reliable inventory • Deep technical expertise, includ-
ing many team members with decades of experience • Personalized service • Regular deliveries • Same-day shipping. “I think we will see continue de-
mand for master distributors,” Malarkey noted, “but the game has really sped up. Today, the typical dis- tributor or showroom is stocking less. That means when they need it, they need it now. Essentially, we are in a world where information and trans- portation increase supply chain effi- ciencies. The customer has multiple options at his fingertips, and either you are on top of it, or you will miss the opportunity for a sale. “I see the future of master distribu-
tion as a mixed forecast. On the one hand, the desire to reduce inventory investment means there is an ongoing niche for master distribution. On the other, the economy has been disrup- tive. For example, we have seen a re- cent trend for manufacturers to increasingly open up smaller show- rooms direct. This is the result of the manufacturers grasping for sales, which is understandable in a down- turn, but there is no “free lunch.” At some point, the finance guys will whip up a spreadsheet showing the in- creased transaction and inventory car- rying costs and the pendulum will swing back the other way. One area of market disruption with long-term im- plications is the maturation of the web channel. As more volume moves to the web, less moves through the show- rooms and contractors. At the same time, consolidation on the web will mean more direct sales relationships between manufacturers and retailers, resulting in disintermediation of the master distributor. To survive and thrive in that environment, it is incum- bent on us to stay nimble so we can find and exploit the opportunities that inevitably accompany those kinds of market changes.”
n See contact information on page 86 • Be sure to visit
www.thewholesaler.com for web exclusive articles and videos! •
For additional information, visit
www.hirschnational.com.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88