The distribution industry remains an important sector in the U.S. economy, with a vast majority of the nation’s distributors being family-run businesses with fewer than 500 employees. The dynamics of the industry are changing rapidly due to many factors including: reduced fill rate times, warehouse technology, “build where you sell” mandates, outsourcing and globalization. With so much change, you need a dedicated advisory team to provide you with sound professional “value added” advice. Our team is focused on financial, operational, and supply chain issues facing the industry. We are confident that our professionals will exceed your expectations. Our firm represents more than 200 distribution-related suppliers nationally.
Some of the industry sub-segments we serve include:
Challenges facing the industry:
Strategies for success:
Financial strength–Focus on liquidity and strengthening of the balance sheet. Implementation of flexible budget reporting.
The word disruption historically has negative connotations associated with it. The specific definition stated by the Cambridge English Dictionary is to prevent something, especially a system, process or event, from continuing as usual or as expected. People are creatures of habit and would really prefer for things to stay the same. Disruption makes us uncomfortable. In layman’s terms, a disruption is a break from the status quo.
Adapting to change today is inevitable as economic stasis is not an option. The concept of resilience, the capability to nimbly adapt to and or drive change, and recover from difficulty, has emerged as a critical characteristic of complex systems in business enterprises. Change not only creates threats to business continuity it also creates opportunities for business value creation. When change occurs so too must business process innovations.
Manufacturing companies that have equipment subject to the Michigan Essential Services Assessment (ESA) are required to certify through the Michigan Treasury Online website that the essential services tax liability is correct before the ESA can be paid.
In 2015, the Financial Accounting Standards Board issued Accounting Standards Update Simplifying the Measurement of Inventory (ASU 2015-11). This standard simplifies the subsequent measurement of inventory by replacing the "lower of cost or market" test with a new "lower of cost and net realizable value test." However, entities that use the LIFO or retail inventory methods, will continue applying their current impairment models.
2016 brought significant changes to personal property tax filing in Michigan.