Distribution: Distributors Learn Global Supply RopesDistribution: Distributors Learn Global Supply Ropes

"It has to do with the whole life cycle of IT," Falkowski says. "You need a methodology so you're consistent in how you look at your platforms and how you do your day-to-day work." Of course, the increased attention to detail, like so much of what companies in the distribution industry do these days, has bottom-line implications. "The margins have been eroding over the years, so there's less opportunity for errors," he adds. Applied Industrial's sales grew 4%, to $1.52 billion, for the fiscal year ended June 30.

The broader goal, however, is to turn new-found efficiencies and process improvements into tangible benefits for Applied Industrial's customers and partners. "You've really got to be customer-centric in our business," Falkowski says. "It's so easy to source products from other places, you've got to separate yourself from the competition."

Separating yourself from the competition, while getting closer to your supply-chain partners and your customers, is a theme that echoes through the distribution industry. Add to that a new global imperative, and the need for the efficiencies and organizational change brought about by the effective implementation of business technology is obvious.

INDUSTRY LEADERS Company Revenue in millions Income (loss)
in millions Tech Data Corp. $17,406 $104 Avnet Inc. $10,245 $73 Arrow Electronics Inc. $8,679 $26 Genuine Parts Co. $8,449 $354 Ferguson Enterprises Inc. $5,033 -- W.W. Grainger Inc. $4,667 $227 Corporate Express Inc. $4,454 -- Synnex Corp. $4,126 $30 United Stationers Inc. $3,848 $73 Stock Building Supply $2,860 $134 Anixter Inc. $2,625 $42 Motion Industries $2,254 -- Growmark Inc. $1,679 $19 Applied Industrial Technologies Inc. $1,520 $31 Associated Grocers Inc. -- -- Dot Foods Inc. -- -- Graybar Electric -- -- Philadelphia Coca-Cola Bottling Co. -- -- TruServ Corp. -- -- Financial data is from public sources and company supplied.
Revenue is for latest fiscal year.
Dashes indicate companies requesting financial information not be disclosed.

SNAPSHOT INSIDE COMPANIES Average portion of revenue spent on IT 1% Companies using radio-frequency identification 12% Companies globally sourcing products and supplies 69% HOW COMPANIES DIVIDE THEIR I.T. BUDGETS Hardware purchases 17% IT Services or outsourcing 7% Research and development 3% Salaries and benefits 44% Applications 15% Everything else 14% INDUSTRY FINANCIALS Average year-over-year revenue change 7% Average year-over-year net income change 327% DATA: information RESEARCH
See year-over-year shifts in business-technology practices for this industry.
Compare and contrast this year's data with last year's.

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