How Optimizing Your Supply Chain Creates an Engine for Growth

By identifying opportunities where wholesale solutions are more efficient and financially viable, this reseller leveraged a strategic partnership to adjust their historical purchasing strategy

Challenges

  • Minimum Order Requirements
  • Rigid Lead Times
  • Vendor & Distributor Fill Rates
  • Cash and Space Constraints

Opportunities

  • Flexible Order Quantity
  • Next Day Delivery to 99% of the Country
  • Reduced Lead Times Increase Forecasting Accuracy
  • Accelerated Cash Flow Generation

The Economics of Inventory Turns & Investments:

supply-chain-chart

Customer Profile

  • Distributor of Janitorial and Sanitary Supplies
  • Multi-Generation Family Owned & Operated Business
  • In Business for Over 100 Years
  • Operating from One Location
  • Low Turn Business Model, Limited Offering

Customer Quote

We always believed, if we can buy direct, we would … but looking beyond margin and costs, we realized how reallocating assets and leveraging wholesale capabilities could be more profitable.

Solution

The reseller worked with Essendant’s Value of Wholesale team on a ‘Cost To Serve Analysis,’ revealing the overall efficiencies and positive financial impact when looking beyond product margin. They switched one major product line to wholesale, and saw opportunity in a new go-to-market strategy by leveraging inventory and capabilities of Essendant.

Results

60% – 80% reduction in inventory investment & transfer costs
More than double inventory turns
Expand into new categories & customer segments
Free up cash flow
Faster speed to market
Organic business growth