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Distribution

Distribution firms compete in a highly fragmented market and face increasing cost pressure as the industry shifts from a “buy, hold, sell” model to a “sell, source, ship” model, or for the more sophisticated firms, a “sell, source, service” model. Margin pressure continues due to global pricing pressure, ‘real goods’ price decreases and increasing service demands from customers. Distributors are focused on becoming as efficient as possible and squeezing errors out of their business processes. “Inventory is everything.”