Consolidating sales organizations
Those former start up struggles and early wins turn into a whole new set of challenges: running the business at scale.
At about this time in an organization’s lifecycle, conversations in the board room and around the water cooler start to focus on the founder.
One way to increase sales and profits is through a process called business consolidation.
This process is designed to lower overhead and production costs, create additional revenue streams, attract skilled managers and achieve economies of scale.
Perhaps managers already realize that consolidation will soon overtake their channel.
In many cases I’ve seen, the new President/COO was a sure bet on paper but failed replicate past successes in a new environment. The titles and role responsibilities might mean one thing in one company and something totally different in another.Consolidation complicates this effort, however, by creating uncertainty about the investments required to gain position if the channel structure changes. How can these companies ensure that they will continue to be major players in the competitive landscape?In this article, we provide a strategic primer on wholesale distributor consolidation for manufacturers.Industry consolidation is replacing a multitude of small “mom and pop” distributors with a handful of national, professionally managed, publicly traded corporations.Seeking to eliminate channel costs, these distributors make new demands on manufacturers and multiply service requirements.