Lawson Study Identifies Global Growth Barriers in Wholesale Distribution
Fee-based services more tied to revenue growth in Europe than North America
Stockholm (July 02, 2007) – Lawson Software today announced the availability of a new report entitled “Growth Strategies in Wholesale Distribution, which identifies many of the changing dynamics of the global wholesale distribution industry and provides recommendations on strategies executives should consider to foster growth and help wholesale distribution companies compete.
The report, based on research conducted by Pembroke Consulting on behalf of Lawson Software, surveyed 1,300 respondents, known distributors across North America, Europe , Australia and New Zealand – comparing and contrasting current strategies for wholesale distribution companies in each region and the barriers that exist to facilitate growth. Key highlights from the research include:
70 percent of wholesale distribution executives view current customers as their most important source of growth over the next five years. Approximately one quarter of European, North American and ANZ executives plan to use acquisition as their primary growth strategy
Only 7 percent of North American industrial distribution executives were expecting fee-based services to drive growth compared to 14 percent of European industrial distribution executives.
60 percent of European executives and 64 percent of North American executives expect improving the operations of current facilities for existing customers to be their most important growth tactic.
More than 50 percent of European executives see significant growth challenges based on their ability to manage multiple locations, particularly if those locations were gained through acquisition. In contrast North American executives in the study cite limitations in managing information related to add-on sales opportunities with current customers as their biggest barrier to growth.
According to this survey by Dr. Adam Fein, the worldwide wholesale distribution industry is going through a period of sustained top-line revenue growth. Executives quoted in the report note that information technology is a tool that can help wholesale distributors accomplish their growth goals, because it allows them to reduce costs associated with order processing, inventory management, customer service, order accuracy and administrative processes. Executives also note that technology can help remove barriers to growth by helping wholesale distributors understand, attract, and retain their most profitable customers.
“In commissioning this study, Lawson wanted to give distributors the knowledge necessary to initiate change and achieve their desired growth targets, said Julian Archer, marketing director for distribution for Lawson. “The Lawson enterprise software solution for distribution offers a platform that can help Lawson customers achieve their goals. We offer reliable tools to help address the complex demands our customers face.
Brødrene Dahl, a market leader in heating and sanitation products in the Nordic region, uses Lawson M3 enterprise solutions, including Lawson e-Sales to help transform the way it handled customer information. “The solution must live up to traditional wholesale distribution values with a reliable, swift and cost-effective product flow, but also supply the customer with a customer-specific, quick and efficient information flow. We have achieved all of this with Lawson, said Steen Petersen, channel manager at Brødrene Dahl. “One of the major benefits of the Lawson solution is the strengthened relationships we now have with our customers.
Source: Lawson
