WINTER 2023

68 THE DISTRIBUTOR’S

68 THE DISTRIBUTOR’S LINK Nelson Valderrama Nelson Valderrama is the CEO of Intuilize, a software Service platform that specializes in helping mid-sized distributors transform data into profits. With more than 22 years’ experience as P&L manager executive for major PE firms and industrial distributors. Nelson has dedicated his career to help business uncover hidden competitive advantages and unleash the power of data in the new Digital Economy. For more information contact by email nelson@intuilize.com or visit www.intuilize.com HOW ROCKSTAR CFOs SOLVE THE INFLATION PUZZLE We are so busy dealing with cost increases, we forgot about profit. Businesses that are well prepared for the storms ahead will be able not only to withstand inflation but thrive. Rockstar CFOs can provide guidance, strategic planning as well as an understanding of what it takes when things get tough in order keep your company’s growth on track and thriving through these challenging economic times. The current economic environment is volatile and confusing, but it’s important for companies to stay data driven. A Rockstar CFO can help coordinate how all the pieces fit together from analyzing an ever-changing market, planning different scenarios so pricing strategy will be in place when markets update unexpectedly or forecasted incorrectly - even monitoring if execution matches expectations . Gartner research indicates that 74% of CFOs believe lower profitability is the biggest risk of input price inflation — which pushes up the cost of inputs required for producing or delivering products and services. CFOs must be aware of the long term risks associated with inflation and they need to take action now in order mitigate rising input prices and shrinking margins, by doing the following: Improve Supply Chain Visibility The inflationary cycle of economic life means that prices are constantly changing, which can be difficult for companies looking to negotiate their own deals with CONTRIBUTOR ARTICLE suppliers. This is where tracing proposed price increases back through specific inputs like labor, materials or transportation comes in handy. In order to remain competitive, a Rockstar CFO shared with me that when they saw many cost changes from local and international suppliers their company adjusted the way they calculated landed costs so as not to be at disadvantage during negotiations. The calculations for transportation like containers or LTL has been taken into account in addition to those on-site replenishment expenses when negotiating contracts with vendors who provide these goods--allowing them greater insight into what it will take both now and down road so they remain competitive. Look Beyond The Typical Recruit And Retain Talent During periods when inflation is high and annual compensation increases 3-5%, employees are effectively experiencing a pay cut. This can be seen as less than optimal during long term talent shortages which have given substantial leverage to workers; this trend will likely continue into the future due economic pressures so you might need to recalibrate your recruitment and salarysetting approaches to meet the challenges of inflation head on. How? ¤ Doing an employee engagement survey to find out any underlying issues in the work experience that drive your employees to start looking for a new employer. CONTINUED ON PAGE 126

THE DISTRIBUTOR’S LINK 69 Members of the Specialty Tools & Fasteners Distributors Association (STAFDA) elected new leadership for 2023 during the Association’s 46th Annual Convention & Trade Show, October 30 – November 1, in San Diego. Following the event’s General Session, Harry Klassen, President and Owner of Fastek, Inc., St. Catharines, ON, became STAFDA President. A STAFDA member since 1998, Fastek specializes in fasteners, power tools, and safety supplies and has three brick and mortar stores along with two mobile site stores. Andrew Hartman, President and Owner of Hartman Independent Company, Canonsburg, PA, was elected STAFDA Vice President. Hartman provides fastening and packaging solutions to the construction and industrial markets in Maryland, New York, Ohio, Pennsylvania, and West Virginia. Hartman Independent Company has been a STAFDA member since 1981. David Milne, Milne Nail, Power Tool & Repair, Pasco, WA, and Erika Scherman, MC Tool & Safety Sales, Blaine, MN, were elected to three-year terms on STAFDA’s Board of Directors. New members of STAFDA’s Manufacturer Liaison Committee include Bill England, Radians, Inc., Memphis, TN, Graydon Greiwe, Continental Abrasives, Santa Ana, CA, Mark Peters, Apex Tool Group, Sparks, MD, and Jim Weldon, Rust-Oleum Corporation, Vernon Hills, IL. Eric Draghi, Draghi Sales, Inc., Phoenix, AZ, and Charlie Gerstman, Harvey Gerstman Associates, Garden City, NY, joined the Rep Liaison Committee. Elections are held every fall with results announced at the Annual Convention. Details on the appointents can get acquired by contacting Catherine Usher, STAFDA Member Services Director, at 262-784-4774 or by email: cusher@stafda.org. For more information contact STAFDA at PO Box 44, 500 Elm Grove Rd., Ste. 2I0, Elm Grove, Wl 53122. Tel: 1-800-352-2981, Fax: 262-784-5059, Email: info@ stafda.org or visit them online at www.stafda.org.