Macfarlane Group: Disintermediation Risk & Pricing Strategies
Former Regional Director at Macfarlane Packaging
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Former Regional Director at Macfarlane Packaging
Interview Transcript
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Right, I understand. When considering customer distribution through McFarlane, approximately what percentage of the customer base, in terms of revenue, do you think falls into the at-risk category at any given time?
The majority, I'd say 60% to 70%. That's a constant threat, but it's always been that way. The market dynamic hasn't changed. That's why McFarlane constantly introduces complexity as a means of protection.
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I had a question regarding the impact of macro conditions and trading in general. My thought was that during tougher times, manufacturers and suppliers might be more willing to accept smaller order sizes and be flexible with fulfillment. When selling is difficult, they might take business they wouldn't normally consider. Does that happen?
Yes, it does. That's a classic example. We're right in the thick of it now. If you consider the marketplace of 2019 and earlier, that was what you would call normality. Let's call that normality. Then in 2020 and 2021, we entered the Covid era, and our industry went mad. We couldn't cope with what distributors wanted from us or with our own customers. Demand skyrocketed.
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