Distribution Talk

Reports of massive employee turnover and dissatisfaction are everywhere––except at Stafford-Smith, Inc. Jason chats with David Stafford, third generation president and CEO of the Kalamazoo-based foodservice equipment distributor, about his company's remarkable retention rate. With 19 locations across 11 states and an overwhelmingly Millennial workforce, Stafford-Smith's culture of loyalty flourishes under David's open-door policy, an office-wide environment of mutual respect, and a few well-timed pranks. "It's been a very good ride so far. We make money; we are very profitable. We work hard. [ ] I don't ask anybody ever to do anything I'm not willing to do myself or have not done." Although David's lead from the front style is a hallmark of successful privately-held distribution companies, it's his repeated acknowledgement of team contributions that make him a standout in the industry.

Competitive by nature, David applies lessons learned from his college football days to business, preferring a team approach to execution and a coach's mindset to decision-making. "It takes a village, and so we all need to do this together," he says, referring to the pandemic-related challenges of the last 18 months. "But again, we also have another edict: business is not a democracy. There comes a time where somebody has to be the head coach, general manager, and owner."

Access to the key decision maker lays the groundwork for job satisfaction and loyalty, regardless of an employee's generational cohort. While many businesses are frantically trying to rework company culture issues exposed by the pandemic, Stafford-Smith is benefiting from well-established practices. "You see a lot of people having a hard time hiring people. Everybody came back to work for us," David says with pride. Even the five employees (out of over 200) who wanted to retain wfh status were replaced within a week.

Stafford-Smith's enviable position as a top-tier employer is one of the reasons they're also exceptionally successful at acquisitions. For companies interested in pursuing an acquisition or greenfield startup, figuring out the perfect formula can seem daunting. David relies on data and his gut. "The formula is, really, I have to feel with these people what's going on. I gotta feel it's the right decision." Again, he goes back to the importance of everyone involved, not only the bottom line. "You gotta make sure you handle it right, that you treat the people right," he says, ever mindful that the new employees will assimilate into Stafford-Smith's well-established ecosystem.

Stafford-Smith's gameplan for a post-COVID environment begins with the folks on the floor and ends on David's doorstep––and his office is always open.

Check out Jason's recent interview with Dirk Beveridge.

CONNECT WITH JASON

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***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: INxSQL Distribution Software, integrated distribution ERP software designed for the wholesale and distribution industry.

Why would anyone spend 97 days on the road visiting 34 privately-held distributors in the middle of a pandemic? To champion the noble cause of distribution, of course!

Jason catches up with Dirk Beveridge, fresh from his We Supply America tour. Beyond the business strategies and innovation beats the heart of this industry: humanity. Dirk shares some of the people-powered stories he captured during this epic journey, offering his patented brand of inspiration and encouragement as well as resources to spark company-wide conversations.

"Everybody in my business network tried to talk me out of it," Dirk laughs as he launches into the impetus for his 16,000 cross-country trek. After 18 months stuck in his office, unable to get out on the road and talk to people, Dirk had had enough. "I was looking to take control [ ] to get into my unique ability."

Anyone who's ever met Dirk knows this visionary entrepreneur and award-winning keynote speaker for his superpower: telling stories about the industry he loves. "This project was really about coming back and finding it, finding Dirk." What he found instead was renewed faith in the strength and resilience inherent to distribution.

We Supply America is more than a love letter to the industry, however. It's a compilation featuring the not-so-secret ingredients that go into making great family-run wholesale distributorships. In an age where the distribution giants seem to be overtaking the world, We Supply America reminds family-run operations that their contribution to this country goes deeper than dollars and cents.

While the C-suite is well represented throughout the eight episodes, Dirk says it's the chats he had with drivers, warehouse pickers, and outside sales teams, among others, that provided the most compelling revelations.

"Every one of these jobs provides for the unleashing of the human spirit, provides for the individual to grow and to develop and to move towards their potential." They form the foundation of this noble cause, he says. Their unique vantage point provides valuable insights that management can apply to innovate processes and culture. As for the top-tier decision-makers, Dirk applauds every single one for their commitment during the pandemic.

Owners continue to grapple with a neverending storm of supply chain issues, labor issues, regulation issues––the list is long. "They have overcome every hardship," he says, adding, "They have accepted the challenge. They have embraced the challenge. They didn't ask for it. They brought their creativity, their grit, their desire, their team, their culture to bear."

At the end of his travels, Dirk landed on one core truth: folks in distribution are noble; they are essentially the backbone of this country. Now he's excited to share that message with viewers through the We Supply America series. "It's been touching. It's been enlightening. It's been inspiring, and it's buoyed me. It's lifted me in terms of the goodness in people, and the goodness of humanity and that business, independent entrepreneurial family-owned businesses that happened to be in the business of distribution are at their core human."

Like what you hear? Check out Dirk's resources and his appearances on previous episodes:

We Supply America

UnleashWD

Values.com

DT039: Dirk Beveridge on coming out of crisis better than before

DT022: Dirk Beveridge on innovation, leadership, and legacy

CONNECT WITH DIRK:

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CONNECT WITH JASON:

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***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: HMI Performance Incentives, providing innovative, data-driven B2B incentive solutions.

Looking for concrete steps to ease the effects of languishing and regain mental fortitude? Jason and Paul Reilly, speaker, trainer, author, and host of the The Q and A Sales Podcast break down six exercises anyone can implement to improve mental resilience, regardless of company role, industry, or location.

Whether you're in the C-suite or the cold-call trenches, there's no question that the challenges brought about by this pandemic are extensive––and exhaustive. It seems counterintuitive then that so many sales teams are crushing their goals from a commission standpoint. But take a closer look.

Professional performance doesn't always reflect what's happening personally, as Paul found out when he began conducting research for his latest book Selling Through Tough Times. While swings in success are inevitable over the course of a career, he points out that for the large cohort of salespeople who got into sales after the Great Recession, these last 18 months have hit a bit differently. "So many salespeople right now are facing tough times for the very first time and they have not built that foundation of mental resilience."

Even those of us who've weathered our share of economic storms before 2020 could use an assist right now. Paul developed his plan to appeal to everyone, no matter their experience. "I call it the Daily Mental Flex®. It's a collection of six exercises that will help you build resilience and help you build that mental strength that we need."

His 30-day Tough-Timer Challenge supports positive mental programming, positive environmental programming, and tough-timer characteristics. So, what's a tough-timer? "A tough-timer is kind of like an archetype. It's the individual who is able to thrive through challenging times."

The nearly 40 years worth of experience Paul's company has had training salespeople provided more than enough tough-timer data. He distilled that information into a simple yet effective plan featuring daily exercises (like reps at a gym) for each of the following entries:

• Gratitude
• Continuous Improvement
• Discipline
• Pruning and Planting
• Positive Reframing
• Reducing Friction

While his challenge is primarily inward-focused, Paul adds that one of the most critical components of resilience-building is empathy.

By committing to 30-days of self-awareness, we acknowledge those areas where we need assistance and, in return, are better able to recognize the same in our family members, co-workers, or employees. "Being able to share what you're comfortable sharing is a nice way to let [the team] know, hey, it's okay to not be okay," he says. In times like these, that acknowledgement goes a long way in strengthening our personal and professional foundations.

Like what you hear? Check out Paul's extensive resources:

ToughTimer.com

Selling Through Tough Times

30-day Tough-Timer Challenge

The Q and A Sales Podcast

CONNECT WITH PAUL

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CONNECT WITH JASON

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***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: INxSQL Distribution Software, integrated distribution ERP software designed for the wholesale and distribution industry.

How honest have you been with your team about their mental health? How honest have you been with yourself? Jason joins business partner Marshall Jones to address mental well-being in the time of COVID from an organizational and personal standpoint.

The pair discuss anecdotal evidence, offer insights from their conversations with clients, and provide tools leaders can use to create a more empathetic working environment. No matter what you take away from this episode, know that if you're struggling, you're not alone. The sooner we acknowledge our shared vulnerability, the better for all.

Does it feel like you're working twice as hard just to tread water these days? When people consider mental health, they most often focus on one end of the spectrum or the other: flourishing or depression. The protracted uncertainty of the pandemic has exposed many of us to a middle state: languishing. Even if your organization is doing well despite the challenges, languishing is an invisible weight that seems to burden everyone.

Then there's the adjacent pandemic: loneliness. Once the silent torment of the elderly, Millennials report experiencing the highest degrees of loneliness. While no cohort is spared, GenY is a huge (if not the largest) percentage of the current workforce. "Senior leadership certainly needs to take a very active role in addressing this and not just, saying, 'Well, I know HR has got it under control' because it's really everybody's responsibility within the organization," says Marshall. But how?

Approaching mental well-being challenges honestly is a good foundation on which to build. The traditional route of head-down/push-through doesn't support personal or organizational well-being. Neither does writing off employees with supposed 'slacker' tendencies; there is too much evidence to the contrary that there's something else going on.

Beyond sharing our struggles with others, there are physical steps that can help ease folks back into a state of flow. Sleep, hobbies, exercise are often quoted because they work! Likewise, gathering the team for a day of community service or other gratitude-based activity can go a long way in strengthening bonds and helping everyone connect on a deeper and more meaningful level than the current crisis.

Like what you hear? Check out the resources mentioned in this episode:

DT073 - Jason & Marshall on navigating the supply chain crisis

DT059 - Jason & Marshall on harnessing the power of peer networks

DT036 - Jason & Marshall on adapting to opportunities during the distribution crisis

The Lonely Century - by Loreena Hertz

NYT: There's a name for the blah you're feeling: it's called languishing

CONNECT WITH MARSHALL JONES:

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CONNECT WITH JASON BADER:

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***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: HMI Performance Incentives, providing innovative, data-driven B2B incentive solutions.

To say Jeff New has earned his upcoming retirement after 40 years at the helm of Mid-City Supply out of Elkhart, IN, is an understatement. His legacy includes expanding the company from one location to nine and the staff from 35 employees to 130. Before he hands the keys to his sons, Jason chats with Jeff about the industry relationships that have helped Mid-City weather growing pains, multiple recessions, and that impending transition.

"My first year of running this company, I took my father's company, which had never had a losing year [ ] and in the first year we lost $180,000," says Jeff. "I thought I was a complete failure." In Jeff's defense, the late 1970s were difficult for everyone. Fast-forward four decades. Mid-City is not only a success; it's a prime example of a company that stays competitive in the plumbing, HVAC, and industrial products industry through a willingness to learn from even the most unpleasant lessons.

Trial and error is a less alarming process when you're in the company of others who can commiserate and offer wise counsel. Jeff credits much of his on-the-job education to his organizational memberships. He's an active participant in American Supply Association, taking on various leadership roles, including president in 2008 - amid yet another major recession. "Here I am, ASA president, big shot, flying around the country, giving speeches," he laughs, remembering the extent to which everyone had to cut their budgets just to get by. "One year later, I'm cleaning my own toilets. If that doesn't make you humble, nothing will."

Belonging is rewarding, but only when members commit their participation. Jeff credits his connections to WIT (now Commonwealth Group) for putting him in touch with the people, strategies, and, yes, money that kept Mid-City afloat through tough times. "It really saved our company because, without that, we wouldn't have been here." While many folks may oppose buying group membership, Jeff sees the relationship as an investment that pays big dividends. "This made us take a look at ourselves from a different viewpoint and made us a better company."

As Jeff prepares to hand the C-suite over to his two sons, he's looking forward to how their co-presidency will shape Mid-City's future. "There are advantages and disadvantages of being co-president," he admits, but his sons have a solid, forty-year foundation upon which to build.

Like what you hear? Check out the conversations mentioned in this episode:

DT074 - Mike Adelizzi

CONNECT WITH JASON BADER:

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CONNECT WITH JEFF NEW:

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***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: INxSQL Distribution Software, integrated distribution ERP software designed for the wholesale and distribution industry.

In an industry stacked with exemplary role models, Shannon Worthington stands among the very best. As president of Dixie Construction Products based in Atlanta, GA, his stewardship extends beyond the company and his era at the helm. Jason chats with Shannon about his commitment to fostering reciprocal relationships and setting the stage for seamless leadership transitions.

Shannon began his career in distribution with a simple pledge to himself: "If I ever get in a position where I could make a difference, I would never send someone out without any training, without any knowledge to go call on people."

Forty years later, that pledge still stands. He remains committed to leadership built on mutual respect and a desire for the entire team to succeed, even those not directly assigned to his payroll. Take Dixie's relationship with its suppliers. While many organizations make the mistake of expecting hand-outs, Shannon and his team look for ways to strengthen those partnerships. "The only thing I've ever asked, or we've ever asked is, help us be better, help sell more product," he says.

The strategy has served Dixie well. It's also a hallmark of Shannon's management style, creating networks from the ground up and nurturing those contacts with integrity - doing the right thing, especially when no one's watching. Shannon admits the right thing isn't always the easiest path to take. However, his commitment to everyone's success remains unflappable no matter the pinch to his personal comfort.

"I learned early on that if you make sure that you've done everything you can, to help [employees] grow and support them [ ] and then they still can't… Then you've got to move on because it's not fair to everyone working around that person or anyone else in the building."

Speaking of moving on, while he has no intention of stepping down anytime soon, Shannon's keenly aware that he'll have to pass the baton eventually. To that end, he takes his responsibility to the next generation of Dixie leadership seriously, owing a seamless transition to those who came before him and made his evolution from salesperson to president a success.

"There's no substitute for time and experience," Shannon says. "You can't make it happen faster; you just got to experience it." He's happy to lend his support to Dixie's younger talent as they fortify their networks and prepare for a successful future in distribution.

Like what you hear? Check out the conversations mentioned in this episode:

DT028: Kevin Higginbotham on cooperatives, manufacturer partnerships, and Planning for Profit

DT072: Kathryne Newton on generational differences in the distribution workforce

CONNECT WITH SHANNON WORTHINGTON:

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CONNECT WITH JASON BADER:

LinkedIn

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: HMI Performance Incentives, providing innovative, data-driven B2B incentive solutions.

It goes without saying that Mike Adelizzi, CEO of American Supply Association, hopes to never again face a test like the COVID-19 pandemic. Still, the crisis thrust distribution into the spotlight; Mike's not about to let all that attention go to waste.

Jason chats with this innovative association exec about serving the plumbing and PVF distribution community through advocacy, education, and planning. The pair also discuss D.Next, the organization's ambitious program for solving supply chain issues and recruiting the brightest talent into industry careers.

"You can't out-Amazon Amazon. We don't have the budgets," Mike laughs. But the obvious assessment doesn't signal defeat. Instead, the market's heaviest hitters - including Home Depot - act as catalysts, driving ASA to think more strategically to protect its members and propel the industry forward. "Amazon actually doesn't scare us. We feel we can compete with Amazon. What scares us is what's coming down the pipe," he says, "what's the next Amazon?"

While no one could've predicted a 15-month worldwide shutdown, ASA does have an excellent track record for spotting impending disturbances within the industry –– and getting proactive. The association has long worked to organize its membership around issues, think: national lobbying, and local grassroots activities like letter writing campaigns and voting strategies.

The future of association advocacy, however, demands a modern approach. ASA has entered the 21st century with D.Next, their state-of-the-art research and innovation lab at University of Illinois Research Park. D.Next is a big initiative that attracts big thinkers. Mike's passionate about the program's recruitment potential and considers it one of his most important acts of advocacy.

"Younger folks today, they don't want to go to meetings, you know? And that's what charged us years ago to start thinking about, well, what can the association do to support them where they would see value?" Under Mike's visionary leadership, the answers lie in D.Next's robust plans for analyzing business intelligence and developing the next-gen of industry solutions.

CONNECT WITH MIKE ADELIZZI:

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***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: INxSQL Distribution Software, integrated distribution ERP software designed for the wholesale and distribution industry.

Navigating the current supply chain crisis requires adaptability - and intelligent math. Jason's friend and business partner Marshall Jones asks the questions this time around as the pair chat real-time challenges and opportunities. Jason's simple equation for calculating customer profitability coupled with his tips for strengthening the relationships that matter will help distributors avoid costly missteps well into the future.

"History does have a good strong track record of giving us, in normal times, a very good prediction of what to buy for our needs," says Marshall before delivering a caveat. "In uncertain times like this, it's not as valuable."

The last 15 months have served up more surprises than the previous fifty. That's prompted even the most conservative distributors to panic. So, how can they adjust their systems to deal with ongoing uncertainties in the marketplace, and what should they be doing to protect themselves, to hedge against being the distributor with too much stock? Well…

"I think this is kind of a tough intestinal fortitude-type of behavior that folks are going to have to take a hard look at. In other words, allocating product to the very best customers that you have," says Jason, noting that manufacturers have played the allocation game for years; it's an easy, effective, and immediate quantification of a distributor's most desirable customers over time. Those who don't measure up are simply taking away gross margin dollars from those profitable customers' contributions.

Customers are only one side of the calculation; suppliers occupy the other. As the world reclaims its footing, distributors that show a willingness to share more information with their core suppliers can gain momentum faster. "If you are a collaborator with these folks," Jason says, "you are going to see, possibly, your orders getting filled more often." At some point, the bottleneck will loosen. Proper crisis management now can create competitive advantages for distributors in the future.

Find Jason's net profitability exercise at Distributor Power Tools: Customer Profitability.

MENTIONED IN THIS EPISODE:

Distributor Power Tools: Customer Profitability

CONNECT WITH MARSHALL JONES:

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CONNECT WITH JASON BADER:

LinkedIn

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: HMI Performance Incentives, providing innovative, data-driven B2B incentive solutions.

"You better be thinking towards the future, or you're going to get left behind." -Kathryne A. Newton, Ph.D

How do you manage the generational divide within your company? Kathryne A. Newton, Ph.D., may not have all the answers, but she does possess more than enough intel to coax groups toward more productive communication. Whether those conversations happen face-to-face, through email, or via text is another matter.

Self-professed generation geek Jason invites Kathryne to bust the cohort myths that get in the way of innovation. She also shares insights from her career as associate dean of Purdue University's Polytechnic Institute and her tenure with the University of Innovative Distribution.

In case anyone assumed otherwise, Kathryne makes her cohort allegiance clear: "I am not a basher of Millennials or Gen Z or any of 'em." Instead, she champions creating environments where the differences build stronger teams rather than pitting one group against another.

With literally five generations currently working side by side, there's a staggering wealth of expertise and innovation in the workforce right now - and an inevitable amount of friction. Helping management navigate intergenerational conflicts is Kathryne's specialty. She often finds that attachment to generational stereotypes (the cynical GenXer; the entitled Millennial) derail good intentions. Each group possesses unique talents, influence, and outlook; it's incumbent upon management to recognize those differences and foster a company-wide appreciation for them.

Her top tip? Meet the individual cohorts where they are rather than expecting everyone to operate in the same style.

Kathryne's time at Purdue has afforded her a unique vantage point to assess the mettle of distribution's next leaders. She likes what she sees. She does wish that more institutions would follow Purdue's lead and provide students with creative programs for financing graduate degrees. However, no matter where they've graduated from, wholesale distribution professionals can continue their education via The University of Innovative Distribution, one of Jason's favorite events. Kathryne is the department chair and a faculty member of the concentrated CEU program.

Although a Boomer herself, Kathryne doesn't sound eager to join the ranks of that generation's retirees, at least not yet. She still enjoys transforming generational discord into workplace triumph.

MENTIONED IN THIS EPISODE

DT069: Steve Diest on career paths and recruitment strategies in wholesale distribution

Generations At Work: Managing the Clash of Boomers, Gen Xers, and Gen Yers in the Workplace - by Claire Raines, Ron Zemke, Bob Filipczak

Adaptive Spaces: How GM and Other Companies are Positively Disrupting Themselves and Transforming into Agile Organizations - by Michael J. Arena

CONNECT WITH KATHRYNE A. NEWTON, Ph.D.

University Of Innovative Distribution

Purdue University

LinkedIn

CONNECT WITH JASON BADER:

LinkedIn

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com

Special thanks to our sponsor for this episode: INxSQL Distribution Software, integrated distribution ERP software designed for the wholesale and distribution industry.

"We started to create a strong bridge between inside and outside of the house; we were realizing that we needed to make both pieces great." -Andrew Hartman

Teams flourish under teachable leaders. For proof, look no further than Andrew Hartman, president of Hartman Independent Company based in Canonsburg, PA.

As the third-generation decision-maker, his conscious efforts to remain open to new ideas and willingness to engage in challenging conversations have transformed this 70-year-old distributorship. Jason chats with Andrew about tweaking team roles, buying group advantages, and leading by example.

"I actually had to apply to the company where I was working part-time for a full-time position," Andrew recalls, explaining that, in hindsight, the speed bumps his father put in place before he could join the family business served him better than having the keys to the kingdom simply handed over.

The experience reinforced the notion that he was applying for a "real job" and, if he wanted to rise in the ranks, he'd have to earn every rung. No spoiler here; Andrew did succeed. "To be a great leader, you have to first be able to be led. That's not possible if you're not teachable," he says, with the self-assured yet humble style that's at the core of Hartman Independent's thriving culture.

Teachability is behind a recent shift within the company. Intrigued by the prospect of strengthening Hartman's value proposition, Andrew split his customer service team and inside sales staff into two separate entities. While not without its challenges, especially during a pandemic, the change has allowed the organization to reallocate resources for potentially more significant returns. "I think, again, just being willing to learn and to grow and to change, it's gonna end in success," Andrew says.

The education doesn't stop once Andrew leaves his office. In addition to STAFDA membership, he's also active in several buying groups: AFFlink and Sphere 1. He's a firm believer in the tools and services provided and the relationships fostered among members.

"There's really a triangle effect that is going on, three strands if you will," he says, "and it creates a strong bond driven by the organization but, still, with the distributor and the manufacturer at the core." Here, too, Andrew approaches his membership with humility, knowing he'll only get out of these associations what he puts in.

CONNECT WITH ANDREW HARTMAN:

LinkedIn

CONNECT WITH JASON BADER:

LinkedIn

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

This episode was edited & mixed by The Creative Impostor Studios.

http://www.distributionteam.com