Progressive Distributor - In defense of dinosaurs

In defense of dinosaurs

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If you believe what some of these upstart e-commerce companies have to say about traditional distribution, its time to update your resumé.

These upstarts tend to follow one of two major schools of thought. One school looks at a highly fragmented industry utilizing old-fashioned modes of communication like the telephone, the fax and (horror of horrors) face-to-face selling, and smugly mutters, Your days are numbered. They believe that distributors, ripe for extinction, should be replaced by a more efficient Web-enabled online buying network.

The other school of thought views distributors not with disdain, but with pity. They, too, believe the distribution industry, as a whole, is highly inefficient and in need of fresh solutions and new ideas. Like the cavalry of old, they have arrived on the scene armed with the latest technologies just in the nick of time to rescue distribution from sure destruction.

Despite what these upstarts might have you believe, your traditional distribution business will not go the way of the dinosaur any time soon.

Anyone who believes upstart Internet companies will replace traditional distributors is placing too much faith in technology and ignoring the importance of longstanding business relationships built on demonstrated value.

Only a fool would deny that electronic commerce is likely to dramatically alter the distribution landscape. Multiple studies point out that Internet technology will have a major impact on and may totally transform supply chain performance within the next few years.

But it would be just as foolish for distributors to become mesmerized by the attention being heaped upon Internet upstarts.

Now is not the time to rush in and make foolhardy decisions concerning the future of your business based on exaggerated claims about the imminent demise of distribution.

It is time, however, to make an honest appraisal of how electronic commerce and Internet technology can help your company.