Transactions and Profits

Published Monday, June 01, 2009

In the first part of our series, we reviewed why understanding cost will be important in the future of wholesale distribution. We are entering a phase of slow growth where cost of service will be of strategic importance for all distributors. Unlike the growth period in the first decade of the millennium, the next decade promises to bring slower growth, limited commodity inflation and relentless pressure on costs. Wholesale distribution can be classified as an aggressive step-cost business structure and traditional accounting practices, including P.A.R. reports, don't provide sufficient information to streamline costs and provide sufficient operating profit.

Transactions and Profits

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