ian heller distributionstrategy,inc....amazon, walmart.com, google, ebay stihl recently franchised...
TRANSCRIPT
![Page 1: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/1.jpg)
Ian Heller
Distribution Strategy, Inc.
![Page 2: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/2.jpg)
• Artificial intelligence is driving a revolution in distribution• Assortment, availability and delivery are being
commoditized• The rise of B2B marketplaces is inevitable
Conclusions
![Page 3: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/3.jpg)
Raising customer expectations & requirements
Emissions and noise regulations:Driving adoption of electric products.
“The OPEESA group is pretty seasoned but the millennials are moving in.”
Lawn and garden shops: Kids don’t want to take over the business.
New competitors: Makita, Milwaukee, DeWalt, etc.
Young people don’t want to be small engine technicians.
Substitute Technology Generational Change
10% of customers do business by fax and don’t have email addresses.
![Page 4: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/4.jpg)
Parts for sale at mass retail and Amazon, Walmart.com, Google, eBay
Stihl recently franchised Northern Tool
Manufacturers want to go direct
Dealers want to go direct.
Tariffs were huge in the past year.
Dealers are going to consolidate.
Dealers won’t hold inventory.
Dealers used to make 30% and distributors made 15% and we’re all doing about half of that now.
“Once I start talking to you – shrinking margins, shrinking customer base, hard to find mechanics – it seems pretty discouraging.”
Channel Evolution Financial Trends
![Page 5: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/5.jpg)
What’s going on?
What’s should I do about it?
New technology revolution
![Page 6: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/6.jpg)
Artificial Intelligence
![Page 7: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/7.jpg)
Current State of AI
![Page 8: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/8.jpg)
8
Information SuperhighwayWorld Wide Web
Network Effect
Clicks and MortarUsenet
Web Browser
Surfing the Internet
EthernetHTML
Windows 95Pentium
TCP/IP DotcomDial Up
URL
1995
>IndustrialRevolution
![Page 9: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/9.jpg)
9
5G Networks
ChatbotsMachine Learning
Artificial Intelligence
Deep Learning
Augmented Reality
Big Data
Autonomous Vehicles
RoboticsData
ScienceVirtual Reality
Turing Test
Image Recognition
Neural Networks
Natural Language Processing>Internet
Revolution
Smart Speakers
2020
![Page 10: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/10.jpg)
2020: Strategy without AI
1995: Strategy without Internet
=
![Page 11: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/11.jpg)
Copyright 2007, S.M.S.I., Inc. - Owen Williams, The Kasparov Agency.James the photographer
1997
“It is not an artificial intelligence project
in any way.”
https://ww w.ibm.com/blogs/think/2017/05/deep-blue/
-Joe HoaneIBM Deep Blue Programmer
![Page 12: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/12.jpg)
2016: AI Leaps Forward
Rhododendrites CC BY-SA
Chess Go
2.08E^170 Moves2E^155 Moves
1,040,840,996,909,890x
There are more Go moves than atoms in the
known universe.
![Page 13: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/13.jpg)
13
![Page 14: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/14.jpg)
“Dazzledits opponent with
creative movesone of which overturned
hundreds of years of Go wisdom.”
![Page 15: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/15.jpg)
15
AlphaGo taught itself.
![Page 16: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/16.jpg)
16
AlphaZero• Current champion at Go• Best Chess player in the worldü Four hours / rules onlyü 20 million gamesü Both sides of the board
![Page 17: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/17.jpg)
![Page 18: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/18.jpg)
Survival Reflexes
SWERVE LEFT!
SWERVE RIGHT!
HIT THE BRAKES!
![Page 19: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/19.jpg)
• Saw the deer coming
• Knows: Everything
• Decides and acts instantly
AI Drives Better Than You Do
• Can’t see in the dark
• Data = Eyes & Ears
• Slow to decide
• Slow to act
Mitigating Factor:Venison for dinner!
Autonomous AIYou
![Page 20: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/20.jpg)
![Page 21: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/21.jpg)
![Page 22: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/22.jpg)
AI Will Make it Safer to Sleep Behind the Wheel than Steer It
![Page 23: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/23.jpg)
A Simplified AI System
Model Developed by Dr. Michael Wu, Chief AI Strategist at PROS
Big Data
1
Machine Learning Algorithms
2
Decisions
3
Actions
4
Measurement and Feedback
5
![Page 24: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/24.jpg)
![Page 25: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/25.jpg)
25
$0.001
$0.010
$0.100
$1.000
$10.000
$100.000
$1,000.000
$10,000.000
$100,000.000
$1,000,000.000
$10,000,000.000
$100,000,000.000
$1,000,000,000.000
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Data source : https://jcmit.net/memoryprice.htm Copyright 2001, 2017, 2018 John C. McCallum
![Page 26: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/26.jpg)
26
0
2000
4000
6000
8000
10000
1991 2001 2008 2009 2010 2012 2013 2014 2015 2016 2020
Mobile Data Downlink Speed (Mbps)
![Page 27: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/27.jpg)
![Page 28: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/28.jpg)
![Page 29: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/29.jpg)
![Page 30: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/30.jpg)
• The world's most knowledgeable product expert
• Who knows you.
• Super-human knowledge of every product ever made
• Always available
• In a store that sells everything.
Amazon wants to remove the keyboard from the buying process
Our vision is that Alexa will be:
![Page 31: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/31.jpg)
40 WPM
20 WPM
130 WPM
Alexa – figure out what these cutting blades are
and send a dozen, pronto.
![Page 32: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/32.jpg)
![Page 33: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/33.jpg)
Technology
Merchant
Technology + Merchant
![Page 34: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/34.jpg)
Wins voice war• Product sales• Search revenue
Loses voice warLoses search revenue
Loses
![Page 35: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/35.jpg)
Walmart.com
Google Shopping
![Page 36: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/36.jpg)
BofA, Merrill Lynch: • 2023: $34B in Sales• 2029: $125B - $245B
Morgan Stanley: Third Party Sales: 20% EBITDA
Amazon Business Financial Estimates
![Page 37: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/37.jpg)
• Carry almost everything• Reach almost everyone• Make ordering easier• Muddy B2B vs retail• Are addictive
Marketplaces
The rise of marketplaces is inevitable
![Page 38: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/38.jpg)
2020: Strategy without Marketplaces
1995: Strategy without eCommerce
=
![Page 39: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/39.jpg)
Availability and delivery are being commoditized
![Page 40: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/40.jpg)
40
Ian’s Retail / Wholesale
Hundreds ofManufacturers
Thousands of Customers
Retailer or Distributor
![Page 41: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/41.jpg)
41
Hundreds ofManufacturers
Thousands of Customers
Retailer or Distributor
Mfr RepsMaster Distributors
41
Ian’s Retail / Wholesale
![Page 42: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/42.jpg)
• Core value prop is commoditized• Marketplaces growing rapidly• Multiple, well-capitalized new entrants
Disruption
![Page 43: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/43.jpg)
43
All is not lost.
![Page 44: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/44.jpg)
1. Become a technology “fast follower”2. Surround customers with services3. Develop a marketplace strategy
Your Next Moves
![Page 45: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/45.jpg)
Inventory
Asset Protection
Product Data
Warehouse Operations
Profitability Customer Data
Product Data
Marketing
Accts Rec
CRM
![Page 46: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/46.jpg)
Get the right talentGet your technology readyGet educated
Technology Fast Follower
Strategic planningTech stack evalIT vendor meetingsAI expert positionConferences
Strategies Right Now
![Page 47: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/47.jpg)
Surround customers with services
![Page 48: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/48.jpg)
48
Service Development
• GM led profit center• Stop bundling• Same rigor as product mgt• Home page “Services” tab
![Page 49: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/49.jpg)
49
24 hour pickup lockers24x7 service24x7 tech supportApplication EngineeringArc Flash EvaluationsAsset Tracking Automatic bin replenishmentAward tripsBack-ups at distributorBarcode reorder labelsBearing testing/reconditioningBearing vibe/temp monitoringBespoke flangesBid reviewBid/tender automationBulk RecyclingBus Bar AssembliesBusiness formsBusiness mgmt software/services Cable cutting and assemblyCable testing & troubleshootingCalibration serviceCar registration geo dataCatalog quick online orderCatalog software integrationChain cutting and assemblyCustomer needs analysisCoating
Drop shippingE-ProcurementEDIElectric motors sealed to IP56Electrical distribution assembliesElectrical EngineeringElectrical harnessesElectrical usage analysisElectronic invoicesEmbroidery Emerg generator tank testingEmergency serviceEnclosure BuildsEnergy efficiency consultingEnergy eff. incentive programEnergy savings calculatorEnergy savings tax docEnvironmental testingEnv/reg compliance assistanceeProcurementEquipment financingEquipment rental Export servicesExpress deliveriesExtended credit termsExtended warrantiesExtruded beltsFacility design assistance
Linear shaft/rail cutting & assyLock Out / Tag OutLogistics managementMaintenance agreementsMaintenance/monitoring servicesMajor accounts programMfg/Alter bearingsMarketing automationMarketing collateralMaterial usage trackingMechanical seals overhaulMerchandising supportMobile appsModule assemblyMotor rewindingMotor-control-center bucketsNew mover programOil disposal & recyclingOil fillingOn-site repairOnline bar code label generatorOnline calculatorsOnline account managementOnline marketplace connectionsOnline order trackingOnline orderingOnline repair databaseOnline technical library
Project financingProject review/mgmtProperty sales & leasingPump and gearbox repairPushbutton stationsRecommend contractorsRegulatory notifcationsRemoval serviceRepair hotlineRepair partsReplacement PartsRFP developmentSafety Risk AssessmentsSame day shippingSample evaluationScholarship programSeal production serviceSoftware installationSoftware/firmware controlSourcing for special productsSpecial / bulk packagingSpecial Billing & PaymentState tax formsSteam trap measurementsStockroom/trailer mgmtStockroom design & set upSupplier auditsSupply contract management
![Page 50: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/50.jpg)
Develop a marketplace strategy.
![Page 51: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/51.jpg)
51
• Track exposure to marketplaces• Meet with marketplace leaders• Learn from experts• Develop a strategy• Watch out for THE TRAP…
Marketplace Strategy
![Page 52: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/52.jpg)
• Net Income 3Q19 v PY:
Amazon Can Manage Its Valuation via Growth or Margin
+$1.3B
• 3rd Party Sellers, ‘19:
• Take +5% 3rd Party Direct (est):
$160B
+$2.3B
![Page 53: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/53.jpg)
“Your margin is my opportunity.”
53
“Third-party sellers are kicking our first party butt. Badly.”
![Page 54: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/54.jpg)
54
What if it’s not really about Amazon?
![Page 55: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/55.jpg)
55
Business model substitution?
• Capabilities• Expectations• Business models• Paradigms
New
![Page 56: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/56.jpg)
56
0
20000
40000
60000
80000
100000
120000
140000
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Digital Film
![Page 57: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/57.jpg)
57
2010 2018
218M
40M
121M
19M
![Page 58: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/58.jpg)
![Page 59: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/59.jpg)
59
What if it’s about marketplaces?
One Company eCommerce Site
![Page 60: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/60.jpg)
60
A Call to Arms
![Page 61: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/61.jpg)
61
“No distributor can beat Amazon”
But maybe we all can.
![Page 62: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/62.jpg)
3rd Party Marketplace
62
Distributor Marketplace
YesNo
YesYesYesYesYesYesYes
NoNoNoNoNo
Product SalesDeliver ServicesBuy through any channelOutside salesMaintain relationshipsLocal stocksCost advantage
Distributor-Owned Marketplace
![Page 63: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/63.jpg)
• Electric vs. Gas• New competitors• Hard to recruit
• Services• Technology• Marketplaces
63
New Challenges New Ideas
Developing a Winning Strategy is the Opportunity and the Challenge for Great Leaders
![Page 64: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/64.jpg)
64
Will you rise to the challenge?
![Page 65: Ian Heller DistributionStrategy,Inc....Amazon, Walmart.com, Google, eBay Stihl recently franchised Northern Tool Manufacturers want to go direct Dealers want to go direct. Tariffs](https://reader035.vdocuments.mx/reader035/viewer/2022070716/5eda7a92b3745412b5716976/html5/thumbnails/65.jpg)
0
10
20
30
40
50
601/2/96
1/2/98
1/2/00
1/2/02
1/2/04
1/2/06
1/2/08
1/2/10
1/2/12
1/2/14
1/2/16
1/2/18
1/2/20
65
Kodak Bankruptcy