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Who Threatens the Successful Distributor?

Many logistics service providers, including nearly all wholesale distributors, face three perennial threats.

  • The first is disintermediation, and this challenge has been there for centuries. It is simply the ability of your customer to replace you by getting the job done in-house. Logistics services are not protected by patents, and they can readily be duplicated by anyone who will make the effort to do so.
  • The second is the elephant in the room. Right now it is Amazon, but in earlier times Walmart and Sears were seen as similar threats. Giant retailers have threatened their suppliers for years, but their service providers usually survive.
  • The third is pricing. Logistics service industry has always sheltered a few ignorant and aggressive vendors who price below cost, either deliberately or by mistake. The losing contracts never last long, and yet they can be a nuisance.

 

K. B. Ackerman Company
2041 Riverside Drive
Suite 204
Columbus, Ohio 43221
Phone 614-488-3165
Fax 614-488-9243

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