Product Redistribution is a growing concern in today’s marketplace. More than ever it’s important to devise solutions that help manage the supply chain in the most efficient and cost effective way.
C.I. Direct reduces the expenses associated with processing Redistribution orders, by providing unified services and support throughout the supply chain from initial order through final delivery. By collecting a comprehensive group of services under one umbrella, C.I. Direct offers customers more options for product selection, pricing and delivery without the need to work with different vendor organizations or multiple contacts. This greatly simplifies the process for customers and allows streamlining of processes for reduced shipping and warehousing costs.
Chem International has the products, knowledge and expertise to make sure you have the right item for whatever your customer needs. We stock everything a company requires to maintain the comfort, integrity and safety of its business – from paper products and cleaning supplies to janitorial equipment and carpet care.
To the uninitiated, redistribution via a wholesaler would appear to be an unnecessary “extra step” in the Jan-San supply chain, shoehorned between manufacturers and their distributor customers.
But just as the Jan-San distributor provides a broad range of products to the end-user, C.I. Direct can simplify and streamline the supply chain between manufacturers and distributors. The wholesaler does this by purchasing large quantities from multiple manufacturers, consolidating the products in his warehouse, and providing just the right mix of products to his distributor customers.The result is elimination of small, high-cost orders for the manufacturer, and improved inventory turns and service levels for the distributor.
From a distributor’s perspective, redistribution also provides an effective solution to several persistent problems. Inventory turns are a major driver of distributor profitability, and redistribution offers the opportunity to make a significant improvement in this area. Without redistribution, the order cycle for a small-volume product line can easily be every 6-12 weeks; with redistribution, the distributor can receive product on a weekly (or even more frequent) basis.
Service levels to end-users are another key measure of distributor performance. During the “downtime” between orders, a distributor often runs out of one or more items from a manufacturer, but must wait until he can put together a minimum order before receiving replenishment. This results in out-of-stock cuts or substitutions, which raise problems for the manufacturer, distributor, and user alike. With frequent deliveries and shorter order lead times, wholesalers provide the opportunity to significantly improve outbound service levels.
When one considers that redistribution offers the potential to reduce cost, improve service, increase inventory turns, and broaden the product offering without requiring additional space, it is easy to understand why savvy distributors embrace it. All of these benefits contribute to improved profitability via “fill rate economics,” or the cumulative effect of providing high service levels with fast turns and low inventory costs.
Jan-San distributors who source products from C.I. Direct can expect to benefit from:
- faster inventory turns
- shorter lead times
- more frequent deliveries
- no minimums per manufacturer
- the efficiency of one order, one delivery, and one invoice for multiple manufacturers
- higher service levels
Another major benefit is “behind the scenes.” We have developed extensive relationships over the years with manufacturers and distributors. This becomes invaluable in reducing freight costs, for instance, since we take advantage of consolidating outbound truckloads through our well-developed network. Chem International provides a full spectrum of logistics management and customer support solutions, including:
- Sales support
- Advanced technologies
- In-depth training
- Product pricing and selection options
- Purchasing management/administration
Clients gain access to all these services and more, selecting only those they need. C.I. Direct offers services that are scalable, efficiently servicing orders ranging from several cases to multiple pallets. Our company goal is to improve services to distributors, giving Chem International customers a competitive edge. As an umbrella provider of services, the number of vendors and transactions required to fulfill orders is reduced for greater efficiency and savings.
Please let us know your wholesale and product distribution requirements.
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