Tapping the ideal wholesale partner

By Roger Hunsberger

H:Xitri,:.1?lr;iil'#s' jff : partner?

A considered approach to evaluating your suppliers is the best way todetermine which wholesaler - I matches your business.

Understand your needs and expectations: At a roundtable with your sales, buying, yard and office staff discuss your customer base (both present and future clients you wish to target), then outline what types of lines would complement existing products and what services you expect from a supp"^once you have an lilu or ri what you are looking for:

Research prospective suppliers : The very basic questions concern the products you already stock. Suppliers representing large-capacity, wellregarded mills with a variety and depth ofproduct line, should have priority in your search. This applies in all cases, be it specialty woods, construction lumber. laminated or structurally designed products. Options to mix species, thicknesses, widths and surfacing hold freight costs down and give you special order flexibility and extra service for your customers who require custom milling.

If a firm has products associated with your existing lines, add-on sales

Be sure your sales people know the full extent of what each supplier carries and instruct them to mention non-stock items to increase sales.

Topics of concern to your competitive edge might include product quality, pricing, quantity restrictions, promotional materials and training.

Beware of the current trend toward single vendor programs. When shipments are late and supplies tightenas will always happen - it is too late to establish the close relationships needed to ensure good pricing and quality. Unless you are a tremendous volume purchaser who can demand a commitment, it's best to diversify. The majority of your business will naturally gravitate toward a main sup- plier - the one who gives you outstanding service. Maintaining a lesser-volume, lower-order frequency relationship with back-up vendors gives you breathing options when you're scrambling to secure supply. ify them as much as possible.

Credit is a major factor in wholesaling and should be a careful consideration of dealers who wish to establish long-term relationships with suppliers. High-volume wholesalers with excellent credit often get first shot at special deals and premier stock, and their regular customers benefit.

Dependable delivery by a regular route is a desired feature in a distribution supplier. Company-owned trucks driven by regular employees generally result in better handling and less overall cost. Timely delivery of small quantities may be the most important feature to a rural yard or smaller dealer.

Understand their business emphasls: In evaluating a potential or current supplier, learn about their business. Arrange a meeting and give them a chance to educate you. The relationships resulting from such an exchange will overcome many obstacles and produce lasting benefit.

In today's markeplace, the lines of ;'XTff:TlffT"iffi,Tii^?

Does your wholesaler also have a retail operation? Do they enforce the quantity ordering policy equitably? Are they targeting your customers (e.g., cabinet shops, manufacturers, industrials users)?

Also of interest when evaluating warehousing operations is the policy applied to customers who request to "pick over" lumber. This practice should be avoided as it has the real effect of lowering the grade shipped

Story at a Glance

How to choose the best wholesaler for your business criteria for a good match.

to unit customers who have special milling performed. It also can result in increased prices to cover losses incurred by handling damage.

Check references: Use your networking from shows and meetings to tap into new wholesalers who are providing excellent service as well as to avoid problem firms.

Negotiate the best package: Your goal should be the best products and terms for all the items your wholesaler stocks.

In addition to pricing, discuss order quantities and any policies you see as inflexible. Ask if they'll make an exception - they often will.

Negotiate simultaneously with several suppliers and be certain they all are asked the same questions and given the chance to counter propose. If the field isn't level, not only is it unfair, it's unwise. How can you know the best choice if you com- l pare different criteria? ^

This approach to wholesalers' I functions well as a review focus and involving your supply partners strengthens your relationship. Done annually, you will be certain you are receiving the best possible service package for your needs.