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Meeting the future head on is the greatest challenge facing distributors, and this small firm is taking steps that are way ahead of the big guys
They say you can't be all things to all people, but Scott Parrish, president of Parrish-Keith-Simmons in Nashville. Tenn., believes his company can be all things to all its customers. It's not an easy promise to live up to, especially for a small company, but it is achievable.
With seven employees, one location and $1.7 million in sales, it may come as a surprise that this general line house is on the cutting edge of industry trends. Indeed, when we think of the leaders in this industry, the Graingers of the world - not the Parrish-Keith-Simmons'-come to mind. But make no mistake about it, Parrish-Keith-Simmons is a leader. It's been using EDI since 1990, is in the midst of setting up a home page on the Internet, and most interestingly, the company has addressed the changing role of the outside salesperson with a radical new sales structure.
Preparedness for the future is what put Parrish-Keith-Simmons in the perfect position to usher in these changes. It also put the company in the perfect position to be presented with this year's Second Annual Excellence in Distribution Award for the under $5 million in sales category.
The changing marketplace can be a frightening place for the small distributor, but Parrish is confident companies like his will survive and flourish into the next century. In addition to carving out niches and being good at what they do, Parrish says small distributors need to focus on small, local end users whom they can provide with an enhanced level of service. Small distributors also need to think about working together, he says, in consortium-like agreements. But above all, being prepared for the future is the key to success.
Though Parrish-Keith-Simmons was somewhat forced into using high technology - two customers came to Parrish in 1990 and said they would no longer be customers if EDI wasn't an option - the transition was virtually painless. Parrish listened to industry experts in the mid 1980s who said EDI was the wave of the future. He knew that jumping in at the start would be a...