Not long ago, I read an article in MDM that seemed to indicate reverse auctions are now a fact of life. I don't agree ﾖ and I think it's dangerous for distributors to allow themselves to believe that. If you believe reverse auctions are a foregone conclusion, you are punting ﾖ right now ﾖ and it's only first down and ten! Either distributors add value or they don't. If you don't, close your doors. If you do, get some backbone, invest some 'lost business' in your company's future ﾖ and shun the reverse auction.
Focus: The electrical niche
My experience is in electrical construction and distribution. I've written for electrical contractors and the distributors that serve them since 1979. How do electrical contractors make money? Not via material purchasing, despite ...
supplyFORCE.com was founded during the dot-com boom with an aggressive, ambitious agenda and seed money from venture capitalists and a small group of electrical, industrial supply, and pipes-valves-fittings distributors.
A financial restructuring of the company in early October saw the VC's leave and the company mutate. Now it's no longer in the dot-com or Internet businesses and has become a distributor-owned entity. The focus now: National accounts sales for the 250 -plus member distributors.
Affiliated Distributors and its chair/CEO, Bill Weisberg, served as the original drivers behind supplyFORCE.com. Unlike the now-defunct SourceAlliance.com and the still-extant Vantage Group, supplyFORCE.com was not limited to electrical distributors.