Industry News

Industry Programs & Events

Industry Associations

Industry Trends

Keeping current on what is happening in distribution can be difficult. At FedEx, one of our goals is to help distributors identify news that affects your business and provide resources to help you solve your business problems.

Industry Consolidation
Mergers and acquisitions increased in 2005 and show no signs of slowing down in 2006. Financial and strategic buyers are increasing their activities in many industries (industrial, electrical, pharmaceutical, automotive, etc.) The end results are financially stronger distributors with solid management, good systems, well thought out and defensible market positions and strategies, and good cash flows and prospects.

FedEx stays on top of the news and events that occur daily in the industry and helps distributors to craft strategy when their situation changes.


Outsourcing, Strategic Sourcing, China
According to a recent supply chain study, in 2003, 30 percent of products consumed in the U.S. were produced internationally. By 2025, the percentage is expected to increase to 80 percent. Many distributors are contributing to this increase by having products private labeled overseas, mainly in China and other Asian countries. Other distributors prefer to maintain the traditional roles, but are seeing their suppliers outsource more of their manufacturing facilities to low-labor-cost countries. In any case, distributors are squarely in the middle of this issue and need to figure out how to respond.

FedEx is active in China and in almost every country around the world. FedEx is here to help you or your supplier to import your products from offshore, and once in the U.S., we have a range of shipping services that can help get your products to your DCs — or direct to your customers — faster.


Increasing Productivity
Doing more with less is what distributors are focused on, daily. This involves making sure that your shipping strategy is aligned with your business strategy and that your people, processes and assets are all working together and as hard as you are.

FedEx has the tools, people and knowledge to help distributors improve their productivity. These include our leading-edge systems and automation that help you look into your supply chain and locate your shipment or our world-class reliable delivery that helps you sleep at night.


Information Technology
According to one distribution industry expert, distributors have accounted for 25 percent of productivity improvement in the economy over the past few years. Information technology has played a big role in that improvement. But technology should do more than help improve productivity, it should help distributors collaborate with their supply chain partners.

FedEx Web-based solutions integrate into most ERP, TMS and WMS packages which will help you reach the improvement levels you are looking for.


Increased Competition
“Big Box” retailers, the Internet, reverse auctions, suppliers going direct — these have all served to increase competition, decrease margins and impact the business and bottom line of distributors. Unfortunately, this trend is expected to increase in the future.
 
FedEx can bring the right products and services to help you compete more favorably. FedEx is one-stop shopping for shipping needs, which allows you to increase buying power and lower costs. And because you are unique, you need customized transportation services. Through our network, we offer you tailored services that meet your needs — so you can meet your customers' needs.


Understanding Total Costs
Leading distributors know that their value proposition in the supply chain is to get the right product to the right customer at the right time and for the right cost. They know that by virtue of their position in the supply chain that they serve customers and suppliers, and that they must continue to focus on providing customer service cost-effectively. It is especially difficult for global products where lead times are longer.

This process requires an analysis of shipping service choices that meet the company's business and supply chain objectives. Evaluating air, ocean and ground shipment services and their full logistics are becoming more important to making sound logistics, supply chain and transportation decisions.

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Industry Programs & Events

FedEx is an active supporter and participant in the wholesale distribution industry. We frequently provide educational programs and participate in a variety of industry events. Look for upcoming activities in your area.

MAGIC
Las Vegas, Nev., August 27-30
Men's Apparel Guild In California otherwise called MAGIC, the largest apparel tradeshow that happens twice a year. FedEx will be represented by the New York and Los Angeles sales teams in a booth in the Sourcing at MAGIC portion of the show. We will be part of a Speed to Market pavilion. Contact Jeff Thomas, Industry Consultant, 901.263.8491.

Corporate Account Executive Workshops
Chicago, Ill. and Atlanta, Ga., October 11 and 13
FedEx Industry Marketing and Corporate Sales will be presenting two workshops back-to-back in Chicago and Atlanta respectively. The hands-on workshop will be co-lead by the FedEx Industry Consultant aided by an outside industry expert. Participants will leave the workshops with action plans specific to their company.

Industry Associations

Industrial Supply Association (ISA)
Association of Wholesaler-Distributors (NAW)
Performance Racing Industry (PRI)
Automotive Aftermarket Industry Association (AAIA)
National Truck Equipment Association (NTEA)
Specialty Equipment Market Association (SEMA)
Motor & Equipment Manufacturers Association (MEMA)
National Electronic Distributors Association (NEDA)
National Association of Electrical Distributors (NAED)

Trade Publications

Automotive News
Electronic Business
The Electrical Distributor
Modern Distribution Management
Industrial Distribution
Progressive Distributor
Purchasing Magazine