THE EAGLE’s interest into differentiation of distribution businesses has been going on for the past few years. We noted many times that compared to their competitors, some companies (manufacturers, distributors and printers) somehow consistently grow, work better with customers and suppliers, make more money and even have more fun. In all the different activities that make up a wholesale distribution business—management, sales, marketing, operations, finance, logistics, inventory management—these companies do some things a little better than their competitors and they do some things a lot better. And it is the things they do a lot better that give them the edge—that differentiate them from the pack.

What we have observed is that those companies that fit the pattern of grabbing success from the jaws of failure always seem to embrace the following four traits of successful differentiation:

Each of these concepts brings with it a real “value” to the participant, whether it is the customer, the supplier, or the employees.