Anyone who has sat through a high school science class may remember the term “osmosis.” This process was first described by a French scientist in 1748, who noted that water spontaneously diffused through a pig bladder membrane into alcohol.
As these words cascade from a keyboard during the last week of January, the industry is still buzzing about Home Depot's acquisition of Hughes Supply a few weeks ago. You can't get into a conversation without it coming up.
The 2006 AHR (Air-conditioning, Heating, Refrigeration) Expo that was held at McCormick Place Center in Chicago last January 23-25 was the largest in history. And although such brands as Carrier and Trane continue to be notably absent, one of the first companies to stop attending (Lennox International) was back in full force.
Well, I've stirred up a little bit of a controversy - and we need your (the readers') help to resolve it! I'll summarize the situation for you - but if you really want all the facts, refer to my article on manufacturers reps in the SUPPLY HOUSE TIMES December 2005 issue, page 71. Then dig out your January 2006 issue and read the letter to the editor from Bill Freeman, president of AIM/R (Association of Independent Manufacturers'/Representatives).
The definition of insanity is doing the same thing over and over and expecting different results. Boil this famous statement down and what it really says is, “You must change.” I recently started working for a new client, one that has been through a steady downturn for a very long time.
In my last article (“Stop Wasting Time, Effort, Money!” SUPPLY HOUSE TIMES, January 2006, page 26) you learned about Muda, the Japanese word for waste. Since then, you have no doubt seen all sorts of Muda every day in your business - inside salespeople waiting for information; more inventory than needed stacked up around your warehouse; billing, shipping, receiving errors.
Hopefully you've absorbed Part One of “Keys to Selling Success” (January 2006 SUPPLY HOUSE TIMES, page 168). If you've followed my articles in the past, then you know there are several topics pertaining to showrooms that I'm passionate about. Teaching and learning selling skills is one of them. Learning how to produce gross profit margins of 35% and more is another.
At a regional meeting of supply-house owners and managers, a branch manager for a large company came over to talk with me. During our conversation, I asked what the biggest problem that he as a manager had to deal with in the business, and I was rather surprised by his answer, given the size and scope of his company.
Is there anyone reading this who doesn't rank hiring, retention and training as among the thorniest business issues? Ask the manufacturers who need engineers to help them design products and processes, and intelligent production workers capable of operating computerized machinery. Talk to the distributors who constantly scramble to develop everyone from managerial ranks to reliable warehouse workers.
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