Home | Business News | Browse by Publication | M | Maintenance supplies

Breaking Down Wholesale Barriers.

Article Excerpt
Breaking Down Wholesale Barriers

BY BILL SWICHTENBERG

High fuel costs, transportation shortages and a slow economy have made the jan/san market hungry for supply chain solutions.

The redistribution of sanitary supply products is sometimes misunderstood. Redistribution through a wholesaler seems like an unnecessary step in the supply chain to many distributors.

However, just as the jan/san distributor provides a broad range of products to the end user, the jan/san wholesaler can simplify and streamline the supply chain between manufacturers and distributors. According to the Sanitary Supply Wholesaling Association's (SSWA) Understanding Jan/San Redistribution, the wholesaler does this by purchasing large quantities from multiple manufacturers, consolidating the products in their warehouse and providing just the right mix of products to their distributor customers.

"Training and strategic planning are integral parts of wholesalers' ability to increase sales," says Tobie F. McKown, president and chairman of the board, The United Group.

The result is the elimination of small, high-cost orders for the manufacturer and improved inventory turns and service levels for the distributor.

Still, there are barriers to redistribution. Manufacturers, distributors and even wholesalers adhere to some beliefs and practices that can be detrimental to the process.

"Basic to the trust relationship between the manufacturer and distributor/wholesaler is keeping commitments by delivering on what each says he or she is going to do," says McKown.

Barriers: Manufacturers

Refusing to pay distributor allowance programs when volume flows through a wholesaler

Abdicating business-building responsibility...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!