1. Sanitary Supply Wholesaling Association
What Distributors Want… Wholesalers Deliver!

2. 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.

3. 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

4. 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.

5. 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

6. 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.

7. 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.

8. 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

9. Our Sponsors

10. Sanitary Supply Wholesaling Association
Visit SSWA.COM to find a Wholesaler in your area!

11. Thank you!