re: MTS F&G Growth - Staring them in the face

Burra,

businesses and how they are arranged are to my mind, choices made to reflect how the leadership team / boards wish to go to market. Time and time and time again we see businesses that have no right to be successful (they don't have a classic business model) succeed. It's easy to point at MTS and say "your model is broke"....broke for what, selling auto spares? I think the model is "broken" when assessed against scale retail. When assessed against aiding and abetting suppliers and retailers to get products to market fast, it should be a world beater, because it was an omni channel owner before the phrase was ever coined. It has x-dock, it has direct to store and warehouse capability. If they can't make those work, make retailers happy, give suppliers confidence to invest in the channel then and only then is it broke. The two items that MTS could do right now;

1. get people into buying roles that have a trader / retailer nous. can they smell an opportunity? If they can't find them or attract the right person, develop a kick butt analytics team that can pour through the sales data and find pockets of opportunity for the buying team to close out. I'm being incredibly silly here, but put each new product lead into salesforce and make 'em follow each lead up. Have the GM's review each outcome line by line each week.....
2. make your combined distribution capability a virtue rather than an example of silo bliss. Here's how the conversation should go....Sure, you have a small brand that you want to grow? We'll help you a little bit, maybe guarantee store payments through charge thru. Have a brand that is now getting bigger, sure we have an offer called cross dock, it will save you on physical distribution, we might help you with payments too but you still have to work you brand hard at the coalface. Have a brand that has jumped those hurdles or one that has the "smell" of a world beater, sure we'll find you a warehouse slot, here's the cost and here's what we need from you. If you are in great, if not go back to cross dock or try your arm at WOW / WES. (even on HC you can't win each and every time). Now get out there and grow your business Mr or Ms Supplier and we'll do our best to help you.