Sanitary Supply Wholesaling Association What Distributors Want… Wholesalers Deliver!

Understanding JanSan Redistribution SSWA Wholesalers partner with manufacturers to develop and provide services that anticipate the changing needs of the market place, maintaining high standards of efficiency and integrity. Wholesalers: An SSWA Wholesaler is a company that is engaged in the business of purchasing products in large volumes from manufacturers, then selling and shipping them to distributors in smaller lots, in combination with other manufacturers’ products. SSWA Wholesalers resell only to distributors who then sell or service the products to end- users.

DISTRIBUTORS: Why Use Wholesalers? Faster Inventory Turns Shorter Lead Times More Frequent Deliveries Efficiency of 1 Order, 1 Delivery, 1 Invoice for multiple manufacturers Higher Service Levels Improved Fill-Rate Economics

Profitability Redistribution offers the opportunity to make a significant improvement on Inventory Turns. 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.

Wholesalers Help Distributors Profit ROI=GP% x Inventory Turns For each dollar invested in inventory, a distributor will make a return of $8.32 if purchased through a wholesaler vs. $3.00 if purchased direct. Purchased via: Direct Wholesaler Avg. Order 100 cs 25 cs Avg. Cost/Case $25 $28 Inventory Investment $2,500 $700 Weekly Sales Turnover Time 4 weeks 1 week Inventory Turns 12 52 Gross Profit 25% 16% ROI $3.00 $8.32

Service Levels Out-of-Stocks can cause delays if Distributors must meet order minimums at the manufacturer, or order cancellations by end-users in search of specific products. With frequent deliveries and shorter order lead times, wholesalers provide the opportunity to significantly improve outbound service levels and customer satisfaction.

Fill Rate Economics Reduce Costs Improve Service Increase Inventory Turns Broaden the Product Offering without requiring additional space Wholesalers provide Distributors with high service levels, fast turns and low inventory costs.

Guide to Redistribution How Wholesaling Works Economics of Redistribution Building an Effective Partnership Barriers & Enablers “Understanding Jan-San Redistribution: A Guide for Manufacturers, Distributors, and Wholesalers in the Sanitary Supply Industry” Author Dave DeWalt, Franklin Consultants, Redistribution Specialist Pinpoints real economic and supply chain efficiencies with definable and measurable benefits Available online at sswa.com

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