By definition, an inflection point is an event that results in significant change when it comes to the progress of a company or an industry. The dramatic change caused by this turning point can be either positive or negative.
The distribution industry is currently at an inflection point. When I talk to distributors about the concept of transformative leadership and when I listen to distributors talk about creating sustainable businesses, what I hear is not only do they sense the need for change, but many also recognize it’s a survival issue. One CEO said to me, “Dirk, our current economic model is not sustainable to maintain pace with companies like Amazon.” Another told me, “If we don’t change, if we don’t find a way to get it done, the status quo of low net returns won’t allow us to invest in the organization at the desired or even the required rate.”