Summary • Dealers have taken clever actions during the year-long pandemic, quickly adjusting their plans to keep dealers up to date with the pace of digitalization and simplifying their on-time delivery process.
• A particularly challenging issue for dealers in the early days was to ensure sufficient inventory to meet the extremely high demand for certain categories (such as network products, replacement equipment and large-screen TVs)-but it turned out to help dealers Distributor tools for accurate forecasting and product cycle planning are valuable resources.
• After successfully adapting to the “new normal”, distributors stated that they expect their business will eventually stabilize in the post-COVID period, adopting a hybrid digital and face-to-face hybrid model-adding that they now have the resources to manage all aspects of it, continue go ahead.
Dealerscope: From 2021 to 2022, what are the most prominent features of your product and plan presentations that provide your retailers with benefits beyond regular buying opportunities (ie educational programs, training events, business best practice seminars, etc.) ? )?
Tyler Nelson, 21st Century Distributing Marketing/Training Director: 21st Century Distributing not only provides the best customer service and products, but also provides additional educational opportunities to help our distributors achieve their best condition, which makes them proud. In addition to several monthly trainings from manufacturers and business professionals, we will also hold an annual dealer roadshow. This will be the second year of our completely virtual event and will provide opportunities to hold educational meetings with our manufacturing partners on product and solution sales techniques. In addition, dealers have the opportunity to earn rewards, win prizes and take advantage of special promotions that are only offered during the exhibition.
Jack Halperin, Senior Vice President, Distributor Channels, Almo Corp.: Distributors have different needs. Some people prefer to participate in face-to-face physical meetings and events, while others have become accustomed to virtual interactions due to personnel restrictions or other reasons. As COVID-19 has become the main catalyst for the evolving online consumer decision-making and purchasing process, we will continue to work with distributors to develop, enhance and expand their online products. Successful independent distributors can no longer ignore this trend in the field of home appliances.
Helge Fischer, Executive Director of Catalyst AV: The business has always been very healthy; the biggest problem is getting AV receivers and other commodities. We are working hard to provide distributors with good training and updates. Most dealers are tired of Zoom meetings, so this part is difficult. Catalyst AV dealers work harder; it's still about education, customer service, and training.
Doug Allen, President of Climate Home Products: Last year, the new crown pneumonia brought many challenges to the home appliance industry. At Climatic Home Products, we have been able to meet the needs of many customers. We have been able to allow many customers to join Microsoft Teams or Zoom conference calls to participate in the release and training of new products. In recent weeks, we have been able to gather our customers in small groups via Zoom phones to participate in the vendor booth display in the virtual group exhibition. In the remainder of 2021 and 2022, we plan to start face-to-face training and customer sales conference calls. We will continue to use Zoom meetings to release new products and programs and quarterly business evaluations.
Fred Eddy, Vice President of US Retail and NSP Sales, D&H Distribution: D&H has added a new supplier onboarding expert program because partners and suppliers need more powerful work/study/play at home technology. In order to introduce new products to the US market more quickly, we have recently trained our sales staff on more than 20 new technologies. This includes home entertainment products such as medical monitoring and purification/sanitary equipment, PC games and projectors, as well as tablets, cameras and accessories for homeschooling. This has led to triple-digit growth in emerging technologies within six months. Another new initiative in 2021: D&H's support services and retail marketing resources enable consumer electronics manufacturers to accelerate investment and return on major electronics retailers. In addition, our national solution provider team will continue to hold on-site virtual product training in high-demand categories related to COVID-19 recovery, including consumer-grade and commercial-grade PC devices, upgraded consumer-grade network solutions, and home And outdoor products, and entertainment products such as PC and console games.
DAS Companies, Inc. National Sales Manager Rex Berfield: As we all know, inventory is the name of the game in 2021. New requests from distant regions are more common. Distributors are faced with challenging problems-either taking care of existing customers or establishing new relationships. We continue our position. We keep it simple. We put our retail partners ahead of all other partners and make sure they understand that we are here to support them, whether in good times or bad times. When we are all making adjustments in these COVID-19 era, we have adjusted our attention to marketing opportunities for distributors. Yes, we are still advertising, but the focus of our communication is to let distributors know what is available, what alternatives are available, and all new opportunities. In the past 12 months, the term remote has had its own life and will continue to affect the way customer service is provided in 2021. Multiple locations and external sales teams will continue to provide advantages that will expand in 2021, providing our dealers with better and faster information and faster delivery.
Kevin Kelly, President and CEO of Exertis: Exertis has more than doubled its outreach program for retailers, supporting their retail and business units in all vertical markets by deploying the industry's most powerful virtual event and training platform , So that we can provide more customized product introductions, web seminars, training courses, and of course, purchase opportunities. By bringing our AV Tour book to this platform, we are able to hold more tours in more locations than ever before. We have eliminated all barriers inherent in physical events and replaced them with powerful virtual program schedules, which we believe will enable our customers to provide customized solutions in all verticals.
Raymond Levy, Chief Operating Officer of Fesco Group: As the world undergoes major changes, the way people work and buy products will inevitably undergo some adjustments. 2020 is a year full of extreme conditions. The pandemic has greatly changed people's work and buying habits. Some of these changes, such as working from home, web meetings and online purchases, will be permanent. Nevertheless, I believe that eventually people will want to work in the office again, shop from the store, and meet customers in person. Many of us have been deprived of these privileges that we may not appreciate, and without these privileges will only make us yearn for what we have lost. As much damage and loss of life as caused by COVID, one takeaway is that we all have a new understanding of what we take for granted. As a company, we need to keep all these in mind and prepare accordingly. As a company, we have adjusted in 2020 and provided our customers with a wider range of products to meet their changing needs. We now provide remote office solutions, personal disinfection equipment and a wider variety of beauty products. We have been adjusting and forecasting. There is never a time to be bored!
Alexandra Harding, Director of Supplier Management, Business and Consumer Solutions, Ingram Micro: We plan to host a nationwide BCS Connections live show in Puerto Rico in 2022. This year, starting in May, we will hold a virtual event roadshow starting in May 18 will focus on real-life solutions that follow the theme of "better work, better play, better life". The virtual tour of the six cities will start in San Diego, then Scottsdale, San Antonio, Buffalo, Greenville, and end in Miami. Each program will be developed around thematic solutions, with the theme of "work anywhere, learn anywhere". We will show some cool videos, show the practical applications of these solutions, and introduce these solutions in detail. We will also focus on wearable devices for digital health. Part of each tour will include the supplier’s main stage and virtual evening social events, and selected suppliers will have one-on-one meetings with attendees. Prizes will be distributed at each location. Our virtual Ingram Micro ONE experience is planned to be held this fall. This is an annual event where top suppliers interact with various customers, including members of our Trust X Alliance and SMB Alliance solution provider community. All aspects of our business and consumer solutions plan will continue in this virtual world until the fourth quarter, and we will continue to cooperate with major suppliers to provide training.
Fred Towns, President of New Age Electronics: New Age will continue to provide training on our product portfolio and hold events throughout the year to further interact with suppliers. We will provide product line reviews with suppliers to understand new product directions and trends. We also have a collaborative forecasting model, and we can work with our customers to provide the best inventory support. In addition to our training, New Age also provides retailers with bundled solution options so that they can provide end users with complete solutions instead of just selling products.
Next Level Distribution CEO Jonathan Elster (Jonathan Elster): In the past year, due to the cancellation of trade shows and conferences, we were unable to show in front of customers-so we had to adjust our direction. We have done this through digital platforms; this has always been our focus. We have provided a very successful virtual seminar on our website. We launched new products and training videos in this way; some vendors provided unboxing and training videos. The unboxing video is something we have never done before. They started in the traditional e-commerce world, where people like to see unboxed products. They are no different from our customers. For example, if LG releases a new OLED TV, we will let one of our employees unbox it, we turn on the TV, and the audience can watch the product live. Traditionally, we would go to customers to show, but due to COVID, we didn't do so much. We had to figure out a digital way to conduct business in a virtual way. The feedback was very good—unbelievable, honestly. We have held a virtual seminar on how to get our customers more involved in social media, and a social media expert explained how to show it to their customers and use it to market to them via Facebook, Twitter and Instagram. We have also just launched SMS marketing, so now we are texting our customers and we will continue to eblasts and shipping fill. We just opened a new factory in Atlanta, and our main concern is to make sure our customers know that we have moved. Of course, we send emails and letters and put them on invoices-but people always turn on their phones, why not text them? This is a great way to remind customers of new product releases or suppliers.
Dennis Holzer, Executive Director, Powerhouse Alliance: As we enter next year, Powerhouse Alliance members look forward to implementing new activities and initiatives for our dealers as we begin the transition to post-pandemic life. Most importantly, we look forward to having the opportunity to communicate face-to-face. The pandemic has undoubtedly slowed the introduction of new products, and we expect new SKUs to enter the market quickly this year. These new SKUs, together with some new products, new dealer relationships and suppliers that we plan to launch in 2021, mean that dealers can also look forward to a rich product lineup and best practice training. In addition, taking advantage of a very strong year for PowerHouse Alliance members, we will see several new locations in the United States, and several locations will be relocated to larger facilities in the same area, so that dealers can easily access to complete the required Other product line projects were successful. Throughout the next year, overall product availability and delivery to dealers will be more efficient.
Given the challenges posed by COVID-19 in the past 12 months, can you review how you adjusted or tailored your activities to help the retailers you served this year?
Holzer: I am proud of the way PowerHouse Alliance members have served dealers in the past 12 months. Distributors across the country have seen the increased demand for new technologies from homeowners and customers. PowerHouse members not only prepare the required products, but also prepare the most cutting-edge security agreements. Members made changes to their daily operations, including social distancing guidelines for dealers and employees. Restricted calls and drive-thru pickup allow distributors to quickly obtain the products they need while complying with social distancing guidelines. Strict cleaning procedures have also been implemented at the warehouse location, including freight disinfection for inbound and outbound orders.
Towns: Despite the challenges faced in the past year, our focus is still to keep customers up to date with technology trends and directions. Like many organizations, we have moved communication to a virtual platform, and regularly contact customers through virtual meetings and events. In order to maintain participation in activities and interactions with partners, we have joined activities such as cooking classes hosted by top chefs, providing an excellent opportunity to enjoy fun and socialize. We also work with industry leaders such as CTA to provide content on industry trends in short, easy-to-understand videos.
Elster: We deliver products to customers faster than ever before. In terms of 24-hour delivery, we cooperate with mobile express services to deliver products to customers within 50 miles on the same day. More and more of our customers rely heavily on distribution; 95% of the territories we sell to receive products on the same day or the next day. Such things are crucial-to ensure that our customers get what they need as quickly as possible.
We have done a lot to help our retailers. When COVID hits, we have to go beyond the norm for customers who are facing challenges and need help, such as providing credit and extending payment deadlines, and providing them with additional resources to help them maintain their business. We also provide curbside pickup services. These things we do are to ensure that our customers can get the products in time.
Eddy: Delivery depends on logistics. D&H’s distribution center remained open throughout the COVID-19 period, and our transportation team responded surprisingly to challenges such as matching inconsistent supply with retailers’ surprising demand for their BOPIS (in-store pickup online) and e-commerce plans match. The flexibility of our freight and warehouse management is impressive, providing a better partner experience when we navigate these unknown waters, especially during the 2020 holiday period. We help retailers switch to inventory, direct sales or curbside pickup sales models as needed. One of the most important adjustments is to ensure inventory when production is limited and to solve the problem of shipping delays caused by global port congestion. Our extensive category knowledge and first-class service enable us to help retailers provide the most urgently needed categories during the pandemic. Our customer engagement activities, including cycle planning, forecasting and execution, have successfully moved to a virtual sales environment in 2020.
Allen: In the past 12 months, one thing has become very clear when there was unprecedented demand in our industry and the closure of North American factories. It puts many customers [in] looking for new partners to help meet their sales needs. Before COVID, we at Climatic Home Products have been working on establishing new partnerships, which allow us to receive products to help meet the needs of many of our customers. We are also able to forecast key products in advance, and can obtain a consistent product flow before the end of the fourth quarter of 2020. The shortage of containers at the end of 2020 and strong demand have slowed down the rate of receiving imported products. At that time, we were able to transfer some key production back to the North American factory and continue to circulate key models.
Kelly: In addition to launching our virtual event plan, we have also taken active measures to re-adjust our product strategy to provide solutions to the needs of today's COVID environment. [Including] Audio and video collaboration solutions, monitors, cameras, speakers, microphones-virtually any world that can enhance the work and study at home we live in today. We have also significantly expanded the support programs we provide to our customers. We created the Exercise XtraCare program to provide employees with much-needed additional protection, and provide our partners with business relief and convenience tools and personal protective equipment (PPE) kits to enable them to complete projects in a safe and reliable manner. We have also created the PROAVXchange online auction center, where distributors can convert unsold products into cash needed for business operations. PROAVXchange provides distributors with the opportunity to sell products at prices most likely to be higher than those offered by banks. We have also worked with all reputable customers to launch FleXFinancing to extend the current and future invoice payment deadlines by 30 days. Exertis also launched a new AV as a Service (AVaaS) program that provides end users with a monthly payment option to enable them to upgrade to the latest technology in the future. Partners will receive full remuneration in advance. Everyone at Exertis can be proud of what we have achieved in this challenging year.
Nelson: 21st Century Distributing has taken a proactive approach to education in the past 12 months to deal with the challenges posed by COVID-19. We provide guidance and resources to our dealers through PPP loans and employee retention programs. We make sure to provide 24-hour contactless and curbside pickup services at our locations. We upgraded our servers and online POS system to cope with the growth in online ordering and processing. Finally, we implemented a robust cleaning and sanitation program in all facilities to comply with WHO and CDC guidelines to help stop the spread of COVID-19.
Halperin: Our top priority has always been to ensure the safety and health of everyone, while continuing to promote business development. At Almo, we quickly acquired tools that allow our employees to effectively interact with distributors remotely. At the beginning of last year, we also reserve as much core home appliance inventory as possible, which enables distributors to continue to transfer products, especially as the demand for home appliances increases.
Harding: It's all about virtuality. We use Microsoft Teams and encourage each employee to make video calls with their customers and tell them to turn on the camera-if they see your living room, or if the dog is barking in the background, or if the child shows up and asks questions; it’s okay to be a human , Live by your side.
Consistency is the key, and we continue to push this information to be delivered face-to-face, not just hidden behind emails or phone calls. It is important to keep in touch with customers. We have also studied the needs of our customers and are studying credit facilities and payment terms to make adjustments as needed.
We do many different things to ensure that our customers have everything they need to succeed. We also made the training fun by adding personal touch—we call it Mendi—that is, sending DIY kits to learn how to cook, bake, or making deli plates—we even send out whiskey boxes.
Fischer: Yes, the agreement has changed. The most important thing is that dealers need to feel safe when picking up the goods, so a lot of personal contact is reduced, and more are picking up after get off work and ordering remotely. We have secured the pickup area, strengthened disinfection and [implemented] social distancing, etc., to ensure that our customers feel good at their dealers.
Regarding the post-COVID recovery period, what do you think constitutes the "new normal" of the distribution business-what do you want to return to the previous state, and what do you think have undergone irreversible changes?
Towns: I think we have a new business environment. With the development of digital information, content and communications, it will develop faster. Meetings can share information and discuss openly without having to wait for face-to-face visits-speed is the key!
I am not sure if the world will return to the traditional way of 2020-it will be a hybrid model with new SLAs and fresh new ideas. I think the role of distribution will be more important than ever to support our retailers to deliver goods to customers with the correct inventory and faster speed. I also feel that face-to-face meetings will be better planned and pay more attention to suppliers and customers, because we can discuss planning and provide content digitally before we sit down for the meeting in person. We have entered a hybrid world where people can choose face-to-face or virtual, depending on which approach best suits their needs. As we have experienced in 2020, everyone will gain something and NAE will provide various forms of solutions so that our customers can continue to enjoy business growth.
Elster: I hear people talking about the new normal. I do think that the digital approach we are taking will continue. We have seen a lot of its value, and so have my customers. [Even in the non-COVID era] Not every customer can go to the trade show due to cost reasons or because they are run by the owner. However, I do envision going back to customers, back to trade shows, back to our suppliers. I don't think this is the new normal-we have to sit in it, just work in our workplace. But as for the digital aspect of doing business, this will continue to be 100%. It does provide us with another way to present products to our customers faster than in the past. It was very successful. We improved our website to make it the best of its kind, and we made a lot of changes to the search function, online promotions, invoice tracking and bill payment, which is very useful for our distributors. value.
Holzer: I expect that the distribution business will resume normal operations before the pandemic during the post-COVID-19 recovery period, but of course we have learned some important lessons. During a pandemic, communication is the key to maintaining the success of dealers and distributors. Distributor members of the PowerHouse Alliance have adopted new options to deliver products to distributors, including same-day delivery, more member trucks on the road, more locations, and inventory warehouses with more products. For the rest of 2021, we will continue to benefit from enhanced communication, as we will introduce new locations, suppliers and products, and restore a consistent face-to-face training program to provide more services, including some additional surprises It will be announced soon.
Levy: We have all experienced a decline in the distribution business, because the brand went directly to retail and bypassed the intermediate distributors. More and more retailers are closing, and we find ourselves in a new world, with more and more brands chasing fewer and fewer retailers. Retailers continue to try to simplify the supply chain by reducing the supplier base. Therefore, it provides an opportunity for distributors who have a supplier number and can provide multiple solutions.
Fischer: With the opening of restaurants, movie theaters, etc., things will normalize, people "feel" everything is becoming normal, they are being vaccinated...the fear will be reduced-this is the key to actual meetings and demonstrations with dealers. I believe that we will be forced to wear masks in training, and still use video conferencing more than in the past, so network products will continue to maintain strong growth. The world may be returning to the office, but many companies still want a mix of their employees in the office and working from home. Similarly, there are many good opportunities for our Catalyst AV members and distributors.
Nelson: We at 21st Century Distributing believe that change is inevitable, and we are always seeking to improve the daily experience of our dealers. Will we see the kind of face-to-face interaction that was considered "normal" before COVID? No. However, in any case, this situation is changing. Distributors use incredible technical tools to display pre-project designs and proposals online without having to be in front of customers. This change is also happening on the distribution side, and distributors need to get their products quickly. We have implemented a 24-hour pickup plan at our location to specifically meet this need so that integrators can place orders at any time and know that it will be waiting for them that night or the next morning. Sometimes changes happen slowly, sometimes in the blink of an eye. This is how you adapt and adjust your business model to adapt to this change, and then predict how the next one will determine your level of success. Looking to the future on the 21st.
Allen: When we enter the next chapter of the pandemic, there will be a "new normal" in the distribution. This new normal will allow distributors to take advantage of technology and accelerate time to market, which will help to better communicate with our customers and deliver new products. I believe that because of the lessons learned during the pandemic, customers who have been able to find distributors that can meet some of their needs in the past 12 months will continue to support a certain percentage of their business going forward.
Just as retailers find that supplier reduction may not be the future direction, distributors also find that a combination of suppliers from around the world is important to the future of their business.
Halperin: We expect that overall manufacturer inventory levels will continue to increase over time. Manufacturers will seek to make up for the share lost in the first 12 months-this year's holiday home appliances should be more in line with the traditional promotion period.
We also expect the procurement team to be able to conduct physical procurement meetings to a certain extent. Although virtual experiences have become a necessary and relevant way to conduct business, it is still important to meet with dealers and suppliers in person at such events when safety is possible.
In the past 12 months, we have learned that doing business remotely is effective. Once our office is completely reopened, we will be able to provide an effective and efficient hybrid balance for employees and distributors.
Eddy: The new normal-no matter how it looks-requires versatility and perseverance. D&H has the depth and breadth of consumer and commercial solutions, and has proven its ability to provide high-level services regardless of what the world wants to buy or how it buys. This agility applies to retail, e-commerce, and B2B disciplines. Even if business travel is still limited, D&H's lifetime field sales team will become an important resource for manufacturers and retail partners. Our positioning is to meet short-term and long-term daily business needs, whether virtual or face-to-face. No one can fully predict the durability of the recent development, but based on D&H's 104-year history and current growth trajectory, we will be here, ready to support the development of this channel for many years after the pandemic.
Harding: I don't think we will return to the way we were. We will continue to see growth in e-commerce sales. I am very happy to see some of these retail stores have successfully transformed their models into curbside pick-up and same-day delivery options. I think when we see each state start to reopen, you will see more rush because people are tired of being locked up. You will see [Release] suppressed needs just to get out. E-commerce will still promote it; operators and the entire network will still face pressure. Delays will continue to deliver, but patience has changed everything, lowering expectations of 24-48 hour delivery-consumers understand this.
How will the business start? When the office reopens, they will not be 100% open-maybe only 50%. Will they provide mixed work solutions to continue to promote these work-from-home solutions? People go out in a hurry to buy anything they can work from home. Fast forward a year and people will update these things because they will continue to work from home, and they want to have better cameras, better display docking stations, and better networks. When they realized that their whole family was working online, they realized that they needed to throw that router that had been in use for four years in the trash can and upgrade it so that they could use the latest Wi-Fi solutions available now, with mesh Network protection. Therefore, these business areas will continue to grow.
I think travel will return to the way it was before, because people want to go out again. But the situation will be slightly different-for example, the dining experience using a QR code to scan the menu will continue. These solutions saved some trees. There are many more non-contact displays. There are not too many things involved, but where self-checkout options or mobile payment options are available, there are trends, and because of these trends, things will get better and benefit the environment.
The conclusion I draw from this is that I hope people can be kinder and more compassionate. Many people have lost their lives in this pandemic; we should not ignore this. People will pay more attention to health and understand their surroundings better.
Kelly: COVID has proven that both manufacturers and distributors must work with distribution partners who can provide the resources and solutions needed to deal with challenges of unimaginable scale and scope. This is the past of COVID—and now it is: a challenge that fundamentally shakes up business. Last year, we demonstrated the true value of our distribution partners. During the boom, everyone can use the word "partner" in distribution. It is easy to become a partner when the time is right. When things are not going well, manufacturers and retailers need a distribution partner to stand with them and help them through the crisis in all the ways they need, including business support, expanded credit, flexible terms, and phased delivery solutions plan. We did all of this — and more. Frankly speaking, retailers need a distribution partner, who is their business partner in every sense. I believe that for all these reasons, the era of small distributors is coming to an end. The integration already underway will accelerate.
Nancy is a contributing editor of Dealerscope.