The “new normal” has easily become the catchphrase of 2020. In distribution, pundits have used it to suggest that working from home will become the norm, that electronic ordering will dominate, that the traditional sales force will be replaced by a new sales model, and that many other dramatic changes will occur.

Only time will tell if these new work modes continue or if business reverts to a more traditional manner of operating. However, from a financial perspective, it makes no real difference which reality holds true. The major drivers of profitability will continue to function in the same manner as before. Further, providing the crucial services which influence the Critical Profit Variables (CPVs) remains essential.

This report will provide a reminder of the interaction between the key components of customer service and the CPVs. It will do so from two distinct perspectives: