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Sunday, September 28, 2008

Alternative Options For Distributors

Due to the current economic instability as well as increasing fuel prices, many regional distributors are being passed over for the larger global suppliers. Oftentimes, the smaller regional distribution services are passed over due to lack of shipping lanes as well as flexibility (in terms of rates and times). Not only do larger suppliers have the advantage of greater influence and reach, but can oftentimes outbid the smaller outfits due to the aforementioned circumstances.
Recently, due to increased operating costs, smaller distributors have been able to make a comeback due to not only lesser expenses, but the ability to offer more personalized service and less stringent operating procedures. Unfortunately it is difficult for the smaller organizations to make a continued push as fuel prices and insurance costs skyrocket. 
There are many challenges that face distributors of all shapes and sizes in this economy, so it is up to the owners and CEO's to work in a manner that continues sound business principles as well as a continued onus on service and customizability for consumers.