Getting beyond piece price savings for customers is industrial distributor Replenex’s goal.
“Piece price reduction is tangible and is an easy way to measure savings. Not to mention that many organizations incentivize their purchasing around piece price reduction,” says Matt Cohen, president. “Nevertheless, piece price savings hardly scratches the surface of ...
Since 2005, Machinery Tooling & Supply, has grown its sales 129 percent, from $17.5 million to just under $40 million in 2012. The key to success, according to Bob Cuthbertson, president of MT&S, was the five-year strategic plan the company created in 2005.
PM Industrial Supply: Sharing Inventory with Competitors
Collaboration with competition can be a sensitive area, but for some distributors, it can help them serve their customers more effectively and efficiently. PM Industrial Supply Co., Chatsworth, CA, works with two “friendly competitors” in the area to get products they don’t carry, such as certain cutting tools.
“It really helps us compete with larger distributors, because it helps us be more of a one-stop shop for our customers,” says Zack Gerin, IT and marketing manager.
To expand the products it could sell without the expense of carrying inventory, San Antonio-based Labatt Food Service collaborated with Ace Mart, a restaurant equipment and supplies distributor. This case study looks at how the two approached the collaboration and the challenges that have gone with it. It also looks at a second collaboration Labatt has built with other distributors to serve customers that have moved to geographic areas it does not serve.
Restaurant equipment and supplies distributor Ace Mart’s original relationship with San Antonio, TX-based Labatt Food Service was as a traditional supplier and an occasional provider of special-order items. About six years ago, Ace Mart, which is based primarily online, proposed a way to simplify how customers can order Ace Mart products through Labatt.
One of the most popular examples of a collaboration between distributors that has worked is that of APR Supply, Schaedler Yesco and Industrial Piping Systems in Pennsylvania. The three have 11 locations together, and continue to uncover new opportunities to benefit from the arrangement. They’ve inspired a new program from Affiliated Distributors called Co-Ventures. This article looks at why the distributors’ collaboration has worked and what to consider when going down a similar path.
Jim Hoffman saw a common thread in his first three clients after he launched his consulting business. “By the end of my first year working in those three companies, I thought, ‘Except for what’s in the boxes, they’re in the same business,’” he said. If he could get them to work together, he thought they could accomplish great things.
More than six years later, the co-venture between plumbing supplies distributor APR Supply Co., electrical distributor Schaedler Yesco and PVF distributor Industrial Piping Systems continues to grow. The three distributors also continue to uncover new ways to benefit from working together.
Industrial distributor MSCO Inc.’s growth has been driven in recent years by its investments during the downturn and ongoing focus on diversification. The Alabama-based distributor, with $80 million in annual sales, grew more than 10 percent from 2010 to 2011.
“During uncertain economic times, we were aggressive in...
Womack Machine Supply’s plans for rapid growth may mean the company’s traditionally close culture will change over time. CEO Mike Rowlett decided he wanted to work to make sure Womack remained a positive place to work despite its growth. He appointed a Vice President of Culture and pushed forward initiatives to make culture a more formal part of the distributor’s plans.
Company: Womack Machine Supply Headquarters: Farmers Branch, TX Leadership: CEO Mike Rowlett, President Art Kostaras
2010 Revenues: $134 million, up 7.2% Details: Womack Machine Supply is an industrial distributor of supplies and components for hydraulic, pneumatic and automation control systems. It is No. 36 on MDM’s list of the Top 40 Industrial Distributors.
Near his office sits one of CEO Mike Rowlett’s most important pieces of office equipment: an ice cream machine, which he purchased when he bought …