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Independent Distributors Cooperative-USA, Indianapolis, IN, has finalized negotiations with HVAC/R distributor cooperative Johnstone Supply to launch their first national service account. The deal offers an initial product offering from IDC-USA, with a planned product expansion to include its lines of industrial bearing, power transmission and MRO products. The Johnstone account is part of an IDC-USA market strategy of cooperatives doing business with cooperatives.
The agreement positions IDC-USA to serve as a master distributor to the 300 independently owned Johnstone Supply stores nationally. The focus for IDC-USA is on the service capabilities of independent distributors, with over 200 locations across the U.S. and $650 million in annual sales. "While national accounts often focus on the volume discounts, our program leverages the service strengths of our members, to offer the strong localized service as well as the multiple location coverage." IDC-USA's National Sales Manager Todd Carroll told MDM. IDC-USA launched its national service initiative in October 2003.
From its beginnings in a 600 square foot store in 1953, Johnstone Supply has expanded to over 300 stores nationwide supported by three regional distribution centers located in Portland, OR: Memphis, TN; and Allentown, PA. The three distribution centers cover more than 430,000 square feet. Founded on mutual cooperation, Johnstone Supply dedicates itself to providing the highest quality products and services to its members and their customers.
"Johnstone is very excited about our new relationship with IDC-USA, particularly because we both share the cooperative business model," said Gary Daniels, president of Johnstone Supply. "We look forward to working with IDC-USA and the individual IDC-USA members throughout the country. It is these types of opportunities that provide meaningful growth for all cooperative members."
"IDC-USA and its distributors look forward to serving Johnstone Supply and the nationwide network of Johnstone Supply stores," said Jack L. Bailey, president and CEO of IDC-USA. "This is a great example of cooperatives working with cooperatives for the benefit of their respective members."
Established in 1988, Independent Distributors Cooperative-USA is a member-owned purchasing and national marketing cooperative of independent distributors of industrial bearing, power transmission and industry related products. The cooperative currently consists of over 200 distribution locations across the U.S. and over $650 million in annual sales. IDC-USA's Distribution Center, National Training Center, and Corporate Offices are headquartered in Indianapolis, Indiana.