Content courtesy of Modern Distribution Management
Jonathan Byrnes is a senior lecturer at MIT whose blog focuses on profitability management for several industries, including distribution. Byrnes recognizes that the slow economy is forcing customers to minimize their inventory and increasingly rely on distributors for fast service. While strong distributors can capitalize on this dependence to increase business, they also must shoulder a big cost burden. As a result, the cost dynamic has an extremely strong impact on profitability, and supply chain costs must be critically evaluated. He recommends three steps to incorporate into implementing supply chain optimization processes: dividing the business, working with customers, and involving sales reps.