Helping distributors achieve excellence in an age of rapid change, growing competition, and rising expectations.
How we help clients
Examples of our work
Pricing journey
- 250 basis points margin increase
- Two years of consecutive quarterly margin expansion
We supported a leading industrial distributor on an end-to-end pricing journey to overturn several years of margin decline. Our insights identified solutions including introducing new policies, redesigning sales processes, and building capabilities and incentives for several hundred branches and associates.
Landmark merger integration
- 2% return on sales-synergy improvement (50% greater increase than original goal)
We partnered with leading distributors across pre-merger planning and post-merger integration efforts and supported a newly combined entity in achieving a 2% return on sales-synergy improvement through a combination of cost reduction and commercial growth levers.
Advanced analytics
- 2-4% increase in revenue
- 6-12% overall reduction in sales expenses
We deployed machine-learning solutions at a global distributor of industrial supplies to accelerate profitable growth. We connected data sources such as customer relationship management, employee communication, finance data, HR data, and transaction information to identify drivers of sales success and pipeline conversion. These insights helped refine sales processes, sales-capability building, and sales-territory planning for greater profits.
Digital enablement
- $250M+ incremental revenue
- 25% faster time-to-market of new features
We partnered with a leading B2B parts distributor to enable an integrated digital marketing and sales transformation, designing a personalized customer journey for web and implementing a process of continuous, rapid customer experience improvement. We reduced feature time release by 4x through agile IT improvements and DevOps and introduced over 100 new web features that enabled incremental revenue from improved site performance, personalization, and digital marketing.
Cost improvement
- Over $100 million in operations and supply chain savings
- 50-basis-point improvement in EBITDA margin
We helped a leading industrial products distributor launch and execute a next-generation margin improvement program - optimizing its branch and distribution center network, boosting productivity in field operations and supply chain, and improving category management and supplier engagement. Our redesign of the network supported commercial service strategy and enabled growth by scaling sites with automation while speeding delivery to customers. With an updated inventory stocking and deployment strategy, the company optimized local assortment, improving its overall cost position.
Featured insights
Article
The power of private-label brands in distribution
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Savvy distributors know the power of private-label brands to retain customers and accelerate profitable growth. Distributors that successfully increase their private-label penetration have a distinct advantage in overall gross margin.
Interview
Wesco CEO John Engel on beating the odds with a merger of equals
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Since merging with Anixter in 2020, Wesco has integrated the best of both, delivered stellar performance, and strategically invested...
Article
Lessons from transformers: How some distributors reset and won
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In an exceptionally challenging marketplace, a few distributors are outperforming others by wide margins. Here’s what they...
Article
Category management’s next horizon: How distributors can outperform
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As prices and customer expectations rise, category management separates distribution leaders from laggards.
Article
How distributors can self-disrupt to win in the new digital world
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Distributors can learn new strategies to make them effective in a world with increasingly powerful digital players.
Article
Defying cost volatility: A strategic pricing response
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While input cost increases and volatility are challenging, they present an opportunity to improve pricing and institutionalize...
Featured blog posts
Blog Post
Harnessing the power of AI in distribution operations
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Artificial intelligence is transforming the efficiency and agility of distribution operations. Here’s how.
Blog Post
Navigating warehouse automation strategy for the distributor market
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Automated warehouses deliver increased productivity, reduced labor dependency, and lower costs. Here’s how distributors...
Blog Post
Revolutionizing sales in distribution: Harnessing the power of AI
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Artificial intelligence technologies are changing the game in the distribution industry, offering unprecedented opportunities...
Featured experts
McKinsey Distribution brings together experts with hands-on experience in every sector and thought leaders with 360-degree views of the industry to help clients build personalized solutions to their most critical challenges.
Alex Abdelnour
PartnerAtlanta
Supports distribution companies and manufacturers that sell through distribution channels to achieve profitable growth through...
Ingo Aghte
PartnerLondon
Specialises in operations transformations in process industries and utilities
Brooke Daniels
PartnerNew York
Specializes in helping companies tackle operational challenges across the advanced-industries sector
Kevin Sachs
Senior Partner, and Leader, Aerospace & DefenseDenver
Drives strategic and operational performance transformations to help advanced industrial and high-tech companies improve efficiency,...
