SUMMER 2025

38THE DISTRIBUTOR’S

38THE DISTRIBUTOR’S LINKNelson ValderramaNelson Valderrama is the Founder and CEO of Intuilize, where he leads a team dedicated to helpingindustrial distributors unlock their hidden potential through data-driven decision making. With over25 years of experience in the distribution and wholesaling industry, including work with GE andPrivate Equity firms, Nelson identified that distributors were sitting on wealth of untapped data.Through Intuilize’s AI-powered solutions that focus on the two main levers of profitability—pricingand inventory optimization—Nelson helps mid-sized distributors transform their operations,preserve institutional knowledge, and achieve sustainable growth without adding headcount orcomplexity. For more information, contact Nelson at nelson@intuilize.com or visit www.intuilize.com.FROM TARIFF DEFENSE TO FINANCIAL OFFENSE: THEROCKSTAR CFO’S GUIDE TO TRADE DISRUPTIONIn today’s unpredictable trade environment, tariffnews arrives like surprise album drops—unexpected,disruptive, and demanding immediate response.Ordinary financial leadership won’t suffice for wholesaledistributors facing costs that suddenly leap from 2% to25%.The industry needs rockstar CFOs who transformtariff challenges into competitive advantages throughstrategic vision, technical mastery, and bold execution.According to the latest Baird-MDM Industrial DistributionSurvey:¤ 99% of distributors expect higher COGS in2025 due to tariff impacts¤ 71% anticipate increases of 1-10%Sound Check: Are you playing defense againsttariffs? Or do you orchestrate a strategic offense,regardless of your position in the supply chain?When traditional players scramble to survive,rockstar CFOs step into the spotlight. They recognizetariff management isn’t just about protecting margins—it’s about reimagining the entire financial compositionto create harmony across pricing, inventory, vendorrelations, and customer experience.The Vinyl RealityThe data doesn’t lie. According to Intuilize research:CONTRIBUTOR ARTICLE¤ Only 15% of distributors promptly pass on morethan 80% of input-cost increases¤ The shift from traditional 2% duty rates to rates ashigh as 25% puts up to 14% of gross margin at risk¤ Distributors with strategic tariff optimizationachieve 4.3% higher gross margins than those simplypassing along costsThe Tariff Command Center: Your RockstarCFO’s Platinum SolutionBoston Consulting Group reports: “Tariff uncertaintycontinues to cast a long shadow over company prospects,with roughly .8 trillion worth of traded goods potentiallyimpacted by higher levies.”Rockstar CFOs shine brightest when spearheadingcross-functional command centers that transformvolatility into advantage. Companies typically face an8.4% increase in COGS due to tariffs, a 2.7% grossmargin impact, and a 1.6% loss in EBITDA if leftunaddressed.4 Platinum Records for Rockstar CFOs1. VIRTUOSO VENDOR COMMUNICATIONAverage CFOs wait for vendor tariff change memos.Rockstar CFOs don’t wait for the band to announce thesetlist—they’re backstage, calling the next number.CONTINUED ON PAGE 118