chain supply houses rant

Chain supply houses vs. big box

Just went to Ferrgusson to find a freeze-proof outdoor hose faucet, and they only had 8 inch length (wanted 12 in).

Went to Big box and found all sizes including 12 inch.

The chains are dropping inventory of slow-moving, or low mark-up stock.--NBC

You got that right,Tony!

The traditional manufacturer-wholesaler-contractor supply chain only makes sense when the middleman adds value,for example,having what's needed when and where it's needed. When the wholesaler has no intention of stocking a product or even worse not stocking parts for products they do sell,what makes them think they should stand in the middle and collect their markup for doing nothing? They seem to take for granted their place on the supply chain as sacrosanct and lousy coffee and poor service should make up for the lack of inventory. I understand that times are tough and maybe they had too much inventory but the flip side is the inventory is the value they bring to the table,not much else!

The Other Side

The entire industry has changed. There was a time when the contractor actually stocked what he needed in his truck or shop. No more, he goes to the supply house each day and expects a 100 percent fill rate on the 200,000 plus sku's of product they sell. Now generally he can get the "A" and "B" items its the "C,D,E" items that tend to be the missing product.



With a sluggish economy, having to meet mfg requirements to get the best price there is going to be holes in stock. Can't order it if I can't make a freight free or best price order if I did I wouldn't be competative and lets face it, not make money.



The other aspect is you the contractor paying your bill each month. For every contractor that does there are 10 that don't and that's being generous.



Lastly, the staff management at the local branch, atleast in our case, can stock what they feel they need but it's them that have to make that happen. There is no magic switch that puts stock in a branch, it still needs to be done based on product knowledge, knowing what your customers need and what new products can hell help them grow their business.



Clammy, that fitting is a "D" item. In 20 years selling Wirsbo I think I've sold a handful. Be more then halppy to ship you some for stock for the next time you need one.

Where to start...

I certainly understand frustration with distribution, but I also think the contractor has to look ahead and communicate with a dist to get what he needs on the shelves. When business was roaring it wasn't difficult to get items in stock. In the last few years getting new or deeper stock of a line on the shelves is a different matter. Contractors have been in survival mode. So are distributors. Every post on this thread has validity. I think what has to be remembered is this is a supply "chain". You know the weakest link theory. If you want a distributor to stock product locally, buying on line or at HD only weakens the distribution link and the problem is exacerbated and there are more of these threads.



Good distributors bring new information and training to the trade. You work with a company or branch and you find the guy in there who knows his stuff and he becomes a resource for you, not just a source of product. No one knows it all and frequently the guys churning thru the lines they stock have a great deal of information and understanding. You have to support that knowledge base or it goes away, to the contractors and the industries detriment.



Just as there are A, B & C items for stock as Chris points out, there are A, B & C contractors and distributors...and I may add, reps;) Ice, I know who you are talking about and I completely get what you are saying. After 35 yrs of business that company will go to the wall for you! To my mind, you have it right. Find the local place that provides the stock, pricing, information, training and can get you the support from a manuf when you need it. There were countless times in my years as a rep that the distributor went to bat for a contractor to get warranty support on something that the dealer did not deserve, but the distributors leverage made happen. You have to earn and deserve that support.



Find the local people who help you support your family, communicate with them and support them.

What happens to those who don't pay...

I talked with a contractor who was taking out bankruptcy, owing the warehouse around 10K worth of bills. His comment was that the warehouse was "going to simply write it off of their books and get it back in taxes..." Yeah... Right. It ends up being absorbed by those of us 10%ers that either pay cash for their materials, or at least pay within terms.



As for supply houses, I have a couple who don't seem to carry anything. "I can have it for you by tomorrow afternoon...." Just In Time ordering doesn't work in THIS world, and causes me to not do business with those suppliers. Understood, they can't stock EVERYTHING, but common items MUST be kept in stock.



I have one warehouse that seemingly has EVERY common item in stock. (Water Systems, Inc and Rampart Supply). They get most of my business.



Care to comment on what happens to defaulters?



Been there, done that and assumed personal responsibility for my debt incurred.



ME

Pretty Simple

800 sqft x 1.5 ( for 8" oc). just goes to show you how far they reached to figure it out. They didn't and that's not serivce that's McDonalds, I'm take a number 3 but don't tell them you don't want the soda cause they can't do the math...