Distribution Talk

"We go in and look at your program. We benchmark it to what we know we can negotiate on your behalf and, by the way, our contracts that we negotiate are in our clients' name. They're not in our name. That's important because the client owns the contract not us." ~Joe Barrer, Global Logistics, Inc.

It's not often (if ever) that I get to say this episode comes with a free bonus offer!

But first, I sat down with Joe Barrer of Global Logistics, Incorporated (GLI) to talk about the future of transport, inbound freight management, and what a fourth-party logistics company can do to boost your bottom line.

"The fact that freight is free is a myth, quite honestly. There is no such thing as free freight and I think most distributors are aware of that," says Joe.

What they might not be aware of, however, is the impact inbound freight analysis can have on a company's financial health. He certainly wasn't in his previous management role at an RV distributorship. That changed when GLI came onboard to analyze the company's freight expenses.

"We were able to reduce our costs by $170,000 net the first year by taking over our freight," he says of the work GLI performed.

In his current role as director of business development at GLI, Joe is an advocate for sitting down and doing the tedious, detailed work - there's just no way around it if you want to reap the savings. That said, he understands the barriers to doing so.

"A lot of distributors simply don't have the time to do this type of analysis so that's where they get hung up. That takes a lot of time and effort."

It might also require a cultural shift as changing the narrative between you and your suppliers begins well before the freight bills are scrutinized. "It absolutely has to be sold from the top down and mandated that this is the effort we're going to put in."

Beyond not having time to dedicate to a line-by-line review, many leadership teams don't know how to review their data or negotiate on own behalf once results are in.

For companies going it alone, he suggests reaching for the low-hanging fruit first. "You've got to see if your analysis is correct and that you're actually coming out ahead and also, quite honestly, some of the suppliers you might be buying from have better rates that you could ever get." Those experiences with smaller suppliers provide information what adjustments need to be made and when it's best to back off.

So, what about distributors who are ready to lower their freight costs but don't want to perform the analysis on their own?

That's where GLI comes in with an offer to evaluate shipping programs, benchmarked to the current market, free of charge.

It's an excellent opportunity to see how a fourth-party logistics team can improve your company's bottom line. "It's a check-up from the neck up," Joe says. "You have a group of outside people with over 235 years of experience...looking at your program and signing off on it or letting you know what it needs."

Want to learn more about how you can negotiate with your suppliers? Interested in how labor shortages are impacting your freight costs? Want to know when driverless freight will hit the road? Listen in!

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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.

Connect with Jason on LinkedIn.

Connect with Joe on LinkedIn.

Get a free evaluation with GLI.

"Any organization that wants to create a sustainable future, if they're not spending a lot of energy and time as leaders on culture - defining it, refining it, enhancing it - in my book, they're missing the mark." ~John Wiborg

John Wiborg, president and founder of Stellar Industrial Supply, believes there's only one thing separating your distributorship from the competition. It isn't price or fulfillment time or service. It's your company's culture.

John and I discuss the intangible qualities that are the bedrock of his business.

"Every team has a culture. But how do you really get intentional about institutionalizing it?" That's the question John posed to his management team several years ago during one of Stallar's multi-day management advances. He's resolute in his use of the word advance when describing these sessions over the ubiquitous retreat. "We don't retreat so we're not going to go on a retreat," he says.

Stellar took advantage of a program offered through Affiliated Distributors to help them identify elements of culture already present at the company and outline practices they wanted to adopt.

The coursework eventually became the framework for The Stellar Way, a booklet of twenty-six fundamentals that help his employees live successfully within the company's culture. John ran with the list and shared his insights with followers on LinkedIn in once-weekly posts entitled Fundamental of the Week until he'd addressed all twenty-six. Then he went further, minimizing any potential fade in enthusiasm by instituting a simple practice.

"In the middle of the week, we'd have a little quiz around it and then every single meeting, whether its with outside parties or not...when we have two or more Stellar people in the meeting, we start the meeting in the Stellar Way. We read the fundamental of the week and we talk about it. It's really been powerful for us."

John's ability to foster the company's culture inside and out has strengthened Stellar's relationships and its bottom line. "What I'm finding is, the execution of these fundamentals and the conversations we're having around them really are greasing the skids in many ways where things would get stuck before," he says.

Beyond that, by institutionalizing the culture, he's able to take big steps back from the day-to-day operations and focus on scaling the business, secure in the knowledge that his team is living and promoting The Stellar Way.

For John, that's the mark of a good servant-leader -- someone who stays focused on the essentials and advances the organization so the team can succeed and thrive in their roles. "I'm not there to play big boss and bark out orders," he says. Nor is he in business to promote his ego. "I decided I wanted to be part of a team, building something that's a good thing." With Stellar, he's done just that.

For an episode clocking in at just thirty minutes, John and I go deep into company mindset! It's a fascinating topic with some surprisingly simple principles you can implement now.

Listen in for some of The Stellar Way fundamentals and another book recommendation for your management ed bookshelf.

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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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with John on LinkedIn.

Follow Stellar Industrial Supply on LinkedIn.

"It was a line-of-duty death that created this business," says John Tragiai, former owner of Keeprs, a law enforcement supply company based out of St. Cloud, MN. A

s origins stories go, Keeprs stands as the most heartbreaking ever featured on Distribution Talk. John's arc within that history - from broadcasting major to police office to successful businessman - is one of the most inspiring.

"It gives me goosebumps right now when I'm sitting here talking about it," John says while relaying the events that eventually lead to the creation of Keeprs.

"Like a lot of entrepreneurs, planning isn't always part of the process when you get into a business." And failure is rarely an option - especially when you've set out to serve those who protect and serve.

If you're like me, you probably assume that all law enforcement agencies outfit their members with the gear they need to do the job. More often than not, however, officers are given a stipend to purchase their own supplies. Like any gear-heavy industry (think restaurant chefs or construction workers), they're motivated to supplement the basics with customized items.

Enter Keeprs, the shop created by law enforcement pros for law enforcement pros. They sold everything from boots to holsters to body armour and they did so with a highly personal customer service ethos.

The company expanded beyond individual consumers to become a multi-state business. Eventually, their clients included whole agencies looking for a supplier who could reliably deliver bespoke uniform and patch combinations in bulk.

Although Keeprs operated within an uncommon niche, John faced challenges inherent to most distributorships. At one point, he found himself at the helm of a growing company but with little experience combatting bloated inventory, outdated software, and non-existent cash reserves.

"I was a cop that was supposed to be a broadcaster," he laughs. John's solution was to lean into his vulnerability and rely on trade organizations for guidance. "I don't mind being vulnerable and asking for help. When I came onto Keeprs, I didn't know the difference between AR and AP!"

That changed with assistance from the National Association of Police Equipment Distributors and the National Shooting and Sports Foundation. "You know, you have to be vulnerable so you can go out there and just learn. Find the resources and learn. That's it."

Two decades later (and wiser), John successfully sold Keeprs to a motivated buyer. Looking back on his wild ride as he puts it, would he do anything differently? You'll have to listen in to find out.

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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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with John on LinkedIn.

Thank you to our sponsor, INxSQL, software built for distribution. Learn more at http://www.inxsql.com.

"Every business has to change." That's what Brenda Puckett, president at West-Lite Supply Co. says when asked about navigating turning points in the wholesale lighting industry.

West-Lite Supply was founded in Los Angeles, CA in 1981 with the purpose of becoming America's premier distributor of lighting products. What was then a commodity based business selling lamps and fixtures, has now transformed into a rapidly changing electronics-driven service specialization.

"Now we're not even in the lighting business. I tell all my customers and my sales reps that we're in electronics now. Think about it -- LEDs… we're controlling these things with our phones. We're controlling the colors of them. We're controlling how we interact with them… lighting really is turned into an experience rather than a commodity."

Being ahead of the curve at West-Lite is important to Brenda. The challenge lies in how you manage inventory when you are selling less of a particular item and you don't want to get stuck with cases of outdated product, yet you have to balance that with keeping items in stock for your best customers and contractors.

In order to compete with the bigger companies in lighting, Brenda coaches her sales force to focus on the consultative side, providing a high level of customer service. She says, "Don't go in looking for an order. Don't go in wondering what they need. You have to go in and educate them and show them and give them the options."

Another big challenge is recruiting top talent. Lighting isn't historically the industry that students are coming out of school and running toward. But that is shifting a bit as the industry becomes more electronics-driven. The concept of engineering environments with customized lighting for particular events or moods is appealing to the younger generation.

In terms of hires, Brenda's looking for people with a little bit of experience and a lot of willingness to get out there and help customers. Sales isn't just about going out to see customers -- it's about doing your research, pre-qualifying and finding out exactly what they need.

Of course, it wouldn't be an episode about wholesale lighting distribution without a discussion on SPAs, or special pricing agreements, which Brenda says can be both a nemesis and also an opportunity for companies like hers. (And we gather that Jason really isn't a fan!)

Brenda also shares her personal journey from college, to the New York Times, back to the family business at West-Lite. She surprises us with the story behind why her son does NOT work in the family business and shares what's lighting her up most about the future of the industry.

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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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with Brenda on LinkedIn.

Thank you to our sponsor, The Distribution Team's seminar: Turning Branch Managers Into Business Managers. November 14-15, 2019 in Atlanta, GA. Get details & register: http://www.distributionteam.com/training

Carolyn Quinn never wanted to be known as a child employed by the owner of a business -- she wanted to be the chief executive officer.

Now president at Pike Systems, Inc, a cleaning supply and equipment company based in Illinois, Carolyn leads an effective sales team that is intensely focused on providing value for their clients. From support tools to on-site training, Pike Systems is committed to find the proper program for the proper client to ensure their ongoing success.

"I've read all of the materials on inside sales teams and how that should function and our janitorial supply industry is just not there yet… people still don't know how to use our products and until they know how to use them, we have to be out in the field."

Listen in to hear how Pike divides their sales process into three distinct roles, the importance of building strategic bonds both within and outside of the industry, and how Carolyn believes in contributing to the success of her customers through education every single day.

"We have to know more than the manufacturer does and not only know that, but know how to integrate one manufacturer's products with another… the amount of satisfaction in knowing that program that you put together is producing results, saving money, in some cases saving lives, and just making things easier for people is really rare."

Get the full show notes at distributiontalk.com.

***

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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with Carolyn on LinkedIn.

Thank you to our sponsor, The Distribution Team's seminar: Turning Branch Managers Into Business Managers. November 14-15, 2019 in Atlanta, GA. Get details & register: http://www.distributionteam.com/training

Third-generation leaders face challenges -- if the business survives long enough for them take the helm at all.

Lauren Roberts, president of cfm Distributors, Inc. of Kansas City, is one such leader who's applying digital native solutions to her company's customer experience challenges. But she's not stopping there. She sits down with me to discuss why it's good for everyone in the industry succeed -- and what she's doing to make that happen.

What Lauren's good at is dovetailing old with new, melding tech with legacy, and serving her peers. To that end, she's on the board of directors for Women in HVACR and is an active member of HARDI. "I'm passionate about giving back. I also believe that if we all improve, all the companies in our industry collectively, we will all succeed together."

Listen in to hear more from this remarkable leader including how this employee-owned company weathers potentially contentious decisions and what it's like to operate out of a hundred-year-old, seven-story building.

Get the full show notes at distributiontalk.com.

"When I first joined the company… it was always, you know, you're the boss's daughter and… you're just here to hang out and you're going to have an easy ride. I had to work very hard to prove to everyone that I was here to work and I was going to add value." ~Lauren Roberts

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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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with Lauren on LinkedIn.

I caught up with Gian Marco Palazio, a serial entrepreneur, author, and business leader based in Managua, Nicaragua. Our conversation is packed with insight into measuring success and learning through failure, creating rituals that invite growth, and nurturing a legacy that honors the past while serving the future.

"[It's] a lot of trial and error, you know? University doesn't teach you how to be an entrepreneur, at least they didn't back then. They taught you how to solve problems but you had to get into [those] problems on your own."

Gian Marco laughs now, decades after graduating from Georgia Tech. And why not? He's built several successful businesses, written a book, and is an active part of a family legacy.

In 1997, however, he found himself headed back home to a country he hadn't lived in since he was an infant to work in his father's agricultural business. Enter an uncle with a duffle bag full of safety gloves and a need for a distributor and Gian Marco's vision for what is today CASCO Safety took off.

He's also proud of the legacy he and his family have created with Café Las Flores, a coffee farm, roaster, and eco-tourism business.

Vulnerability is not a word that you hear often on Distribution Talk. Gian Marco says it's the key to his success.

Listen in as Gian Marco delivers distribution life lessons, including candid talk about his personal struggles and the steps he took to get where he is today.

Get the full show notes at distributiontalk.com.

"I highly recommend if you don't have a morning ritual that takes you to a place of gratitude...and also be able to find spaces for your darkness of your fears of your doubts of whatever holds you back, I highly recommend you start finding a process to do that. It's never too late." ~Gian Marco Palazio

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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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with Gian Marco on LinkedIn.

Think your DIY customer survey produced the data you needed? Are you confident in your ability to analyze that information and implement those client recommendations?

I sat down with Martha Brooke, chief customer experience analyst and founder of InterAction Metrics, to find out how better questions translate into meaningful customer insights.

"Just because you have a platform like SurveyMonkey doesn't mean you have a good survey." Take Martha's word on that; she's been in the business of creating customer listening mechanisms since 2004. She's also used her LinkedIn blog to call out some of the biggest companies in the world for their abysmal client questionnaires.

Beyond the questions, there's the mechanism; not all businesses benefit from surveys.

Martha says that companies with inside sales, tech support, or customer service find call recordings or client interviews more helpful. "That's a great way...because the customer will drop little clues about what they're looking for."

Interested in eliminating bias from your DIY surveys?

Looking for simple ways to encourage worthwhile feedback from your best customers?

Martha shares more tips and tricks in our conversation so listen in.

Get the full show notes at distributiontalk.com.

"Honestly, without getting those kinds of insights...you're sort of running rudderless... you're in the dark and it's hard to steer the ship." ~Martha Brooke

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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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with Martha on LinkedIn.

When things go badly, rest assured the situation can always get worse. That's what happened to Steve Cohn, president of Premier Beauty Supply.

If you think salon sales has nothing in common with your distribution business, hang with this episode. My conversation with Steve yields some great advice for everyone, regardless of industry, about resilience and reinvention -- especially when things go from bad to worse.

It's impossible to hear Steve talk about the challenges his company faced in 2007 without feeling retroactively panicked for Premier. "We had one manufacturer that wound up selling [their] business to another and, at the end of the year, that manufacturer told us they were gonna go with their own distribution chain."

The situation at Premier was difficult at best; a disaster at worst. But challenges are a part of doing business. "You know, things happen," says Steve. "We didn't do anything wrong here and I just felt we had another one left in us."

With that mindset, he and his wife set out to start from scratch again, rebuilding on top of the hard lessons of that year and a strong foundation of twenty years in business.

Steve shares tips, talks letting go of staff (78 team members in one day!), and what he loves best about having a kid in the business.

Get the full show notes at http://www.distributiontalk.com

Thank you to our sponsor INxSQL, software built for distribution.

"At the end of the day, the salesperson's role is to sit with the customer and really help them grow their business. We know the more we can help them grow...the more they want to do business with us." ~Steve Cohn

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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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with Steve on LinkedIn.

What have you done to secure your company's future?

Beyond upgrades to your tech, your warehouse space, and your fleet, what investments have you made in your people? Michael Meier, VP and COO of Meier Supply Company, discusses how his own professional growth has translated into a passion for training company talent and clientele.

Michael laughs when he tells his origin story and it probably resonates for a lot of listeners. He spent his post-college years as an HVAC tech, happily turning wrenches for six years when... "My dad offered me a position at the company. I took the job - and a $2 an hour pay cut!"

After six months, the then 26-year old Michael told his father he needed to get back out into the field and turned in his two week notice. A week later, his brother had convinced him to stay.

Since then, he's been a champion of professional development. "I realize the importance of coaching this next generation, this wave of employees," he says, pointing to his own challenges as the impetus for his drive to educate the future.

"I originally struggled calling on customers and that wasn't my specialty. I really had to learn to talk and to deal with people."

Get the full show notes at http://www.distributiontalk.com

Thank you to our sponsor INxSQL, software built for distribution.

"The better we make our contractors, our customers, the better it's going to be for us and, of course, for them...It's about what can we do to make a contractor more profitable, what can we do for them?" ~Michael Meier

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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.

Edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn.

Connect with Michael on LinkedIn.