News and Trends

• Cardinal Health reports $24B in revenue for fiscal Q1
  Cardinal Health reported revenue of $24 billion for its fiscal first quarter, an increase of 11% from the year-ago period, but the company's profit declined on higher charges and expenses. The drug and medical products wholesaler-distributor still has plans to spin off its Clinical and Medical Products businesses next year. Modern Distribution Management (10/29) , Reuters (10/29) , RTT News (10/29)

• HD Supply migrated to new IT platforms in six months
  After Home Depot sold HD Supply to private equity investors in August 2007, the company had six months to transition its suppliers and customers from Home Depot's information technology systems to its own. HD Supply migrated 225 integrated suppliers and 80 integrated customers, thanks to an integration solution developed by Hubspan. "Not only did we have to move quickly, but it was critically important that we maintained business continuity with our customers and suppliers," said Mark Linder, director of e-Business for HD Supply Facilities Maintenance. Supply Chain Management Review (10/28)

• Office Depot rejects Gigante's bid for stake in joint venture
  Gigante's bid of $430 million to buy out Office Depot's stake in a joint venture between the two companies was rejected by Office Depot. "Talks with our partner continue, looking for alternatives that can lead to the consolidation and growth of its business in Mexico as well as the expansion to Latin America," Gigante said in a statement. Reuters (10/29)

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Best Practices

• When going gets tough, get back to fundamentals
  Businesses should get back to fundamentals during a recession. That means planning well, carefully tracking sales, expenses and new projects, among other aspects of business operations and avoiding laying off people too soon. Entrepreneur.com (10/24)

• Know yourself, be prepared for chaos during business crises
  In its work to help businesses grow, the Center for Creative Leadership says it has observed hundreds of executives who say that working through crises helped make them better leaders. Some tips for preparing for and coping with a crisis include knowing your strengths and weaknesses, making sure not to compromise your values and expecting to be subjected to some major tumult. BusinessWeek (10/28)

Sales

• Use sales practices in negotiating with sales candidates
  Some best practices from sales can help ease the process of making an offer to a sales position candidate without damaging your relationship with them. For instance, says sales management expert Lee B. Salz, there's a saying that "if you are going to lose, lose early" in order to avoid losses from a big investment. The same goes for a sales hire -- find out early what the candidate's financial requirements are and don't waste your time if the candidate's required compensation is 25% above what you can offer. Manage Smarter (10/28)

Hot Topics

Top five news stories selected by NAW SmartBrief readers in the past week.

• Wolseley to let go 3,000 workers in the U.S. (Bloomberg)

• Airgas to continue acquisition strategy (Industrial Distribution)

• Airgas reports 44% jump in Q2 profit (RTT News)

• Selling may be an art, but it needs more science (Manage Smarter)

• Determining when to make cuts is critical to survival (BusinessWeek)

• Results based on number of times each story was clicked by readers.

Small Business Manager

• N.Y. senator proposes $700 million small-business stimulus
  Sen. Charles Schumer, D-N.Y., has proposed a $700 million small-business stimulus plan that would, among other things, waive bank service fees on loans, give the Small Business Administration more money for staff and loans, raise the limits on SBA and let the SBA offer loans for refinancing. Schumer said he will promote his stimulus package in the Senate after the Nov. 4 elections. Newsday (Long Island, N.Y.) (10/29)

Executive Life

• Surcharges declining on overseas flights, expensive tickets
  Despite a recent move to cut fuel surcharges on the most expensive tickets, almost 60% of domestic fares still carry the extra fee, according to an analysis by FareCompare.com. Domestic surcharges range from $10 to $260, with $170 being the most common. The average surcharge dropped as much as 10% from Sept. 22 to Oct. 22, but low- and mid-priced tickets saw no change. USA TODAY (10/28) , USA TODAY (10/28)

• Truphone aims to cut international rates for BlackBerry users
  Global wireless operator Truphone has began tests on a new service for BlackBerry phones that the company says will make it less expensive and simpler for users to call overseas from their home country. Truphone Anywhere, which will work in 33 countries, is designed to operate in combination with local carriers. Total Telecom Magazine (U.K.) (10/28)

NAW Insider

• Preventability of motor-vehicle collisions
  A significant expense for almost any wholesaler-distributor is the cost of commercial automobile insurance. Here are some suggestions you can use to protect your business and avoid costly motor-vehicle accidents.

• Distributor Success Stories: Profiting Despite the Difficult Economy
  The 2009 NAW Executive Summit focuses on the most important issue facing you in the coming year: the economy. We know your time is valuable, so we won't tell you what you already know -- that "the economy is challenging." Instead, we'll tell you what other distributors are doing to succeed despite difficult economic conditions. Register at the early-bird discount.

• Brand new: Make your operations lean in challenging times
  Becoming lean in distribution is more important than ever in today's challenging economic market. Applying lean concepts makes sense because becoming lean means becoming a more effective distributor. And becoming lean will lead to higher profitability. Lean Operations in Wholesale Distribution focuses on the lucrative operations area and discusses steps distributors must take to design and manage a lean culture.

Weekly Poll

• Do you expect the economy to have a negative impact on your business in 2009?
  NAW Year-End Report, to be published Dec. 9 and 11, will include a letter from your editor, the most important stories of the year and your favorite SmartQuotes. Make sure to look for the results of this poll in Part 2 on Dec. 11.

	Yes. It is pretty much inescapable right now.
	Maybe, but if we take precautions, I think we will be fine.
	No, we have been working to cut costs and improve productivity all year.

Business Manager Curbell Plastics, Inc. Various Locations Vice President of Distribution Uline Waukegan, IL Vice President, Supply Chain Stein Mart Jacksonville, Florida

SmartQuote

Nobody talks of entrepreneurship as survival, but that's exactly what it is and what nurtures creative thinking." --Anita Roddick, Body Shop founder