When a wholesale distributor wanted to single-source its filter purchases and get better pricing, Duraflow Industries delivered. The distributor, a well-established company in the Eastern United States, serves the multi-family and commercial housing markets. By replacing more distant filter suppliers with Duraflow, the wholesale distributor also shortened its supply chain for faster shipments.
For wholesale distributors, effective vendor management is important. Having too many suppliers can increase overhead costs. Having too few suppliers can introduce risk if vendors are unable to deliver. Single-sourcing can be an effective strategy, but distributors need partners who are reliable, responsive, consistent, and cost-effective. For quality filters, Duraflow Industries meets these requirements and more.
Before partnering with Duraflow, the wholesale distributor bought appliance filters from multiple sources. Duraflow could get on the vendor list, but would be just one supplier among many. Then Duraflow explained how it could offer better pricing than the wholesale distributor was getting from the competition. That's when additional sales discussions began.
During these supply chain conversations, Duraflow explained how it could meet the wholesale distributor's pricing requirements. Duraflow agreed to meet the necessary rebate percentages and developed a custom program with a tiered structure. At the end of the calendar year, the whole distributor receives an attractive percentage of sales that supports its bottom line.
The new agreement began mid-year, but Duraflow was flexible and pro-rated the program so that the customer could hit important rebate targets. The wholesale distributor then ordered quantities of both newer parts and obsolete designs in various volumes. Consistent, reliable shipments and effective vendor management increase efficiency. Today, Duraflow is the company's single-source filter supplier.
Duraflow's location near Cleveland, Ohio (USA) is also an asset. As part of the New York-to-Chicago transportation corridor, Cleveland is a hub for major highways and a cost-effective location for shipping. Cleveland is also just a day's drive to New England and the Southeast, the most northern and southern points in the wholesale distributor's service area.
By contrast, several of the filter companies that the company could have chosen were in the Western United States. Distant suppliers can still make on-time deliveries, but speedy shipments from remote locations can cost more. By choosing Duraflow as its single-source filter supplier, the wholesale distributor gets the rebates it wants and receives the filters it needs.
When a wholesale distributor wanted to single-source its filter purchases and get better pricing, Duraflow Industries delivered. The distributor, a well-established company in the Eastern United States, serves the multi-family and commercial housing markets. By replacing more distant filter suppliers with Duraflow, the wholesale distributor also shortened its supply chain for faster shipments.
For wholesale distributors, effective vendor management is important. Having too many suppliers can increase overhead costs. Having too few suppliers can introduce risk if vendors are unable to deliver. Single-sourcing can be an effective strategy, but distributors need partners who are reliable, responsive, consistent, and cost-effective. For quality filters, Duraflow Industries meets these requirements and more.
Before partnering with Duraflow, the wholesale distributor bought appliance filters from multiple sources. Duraflow could get on the vendor list, but would be just one supplier among many. Then Duraflow explained how it could offer better pricing than the wholesale distributor was getting from the competition. That's when additional sales discussions began.
During these supply chain conversations, Duraflow explained how it could meet the wholesale distributor's pricing requirements. Duraflow agreed to meet the necessary rebate percentages and developed a custom program with a tiered structure. At the end of the calendar year, the whole distributor receives an attractive percentage of sales that supports its bottom line.
The new agreement began mid-year, but Duraflow was flexible and pro-rated the program so that the customer could hit important rebate targets. The wholesale distributor then ordered quantities of both newer parts and obsolete designs in various volumes. Consistent, reliable shipments and effective vendor management increase efficiency. Today, Duraflow is the company's single-source filter supplier.
Duraflow's location near Cleveland, Ohio (USA) is also an asset. As part of the New York-to-Chicago transportation corridor, Cleveland is a hub for major highways and a cost-effective location for shipping. Cleveland is also just a day's drive to New England and the Southeast, the most northern and southern points in the wholesale distributor's service area.
By contrast, several of the filter companies that the company could have chosen were in the Western United States. Distant suppliers can still make on-time deliveries, but speedy shipments from remote locations can cost more. By choosing Duraflow as its single-source filter supplier, the wholesale distributor gets the rebates it wants and receives the filters it needs.