1. Introduction to “Inventory-Sharing”
Mark Tomalonis
WarehouseTWO, LLC
WarehouseTWO, LLC CONFIDENTIAL

2. Test Your Clickers!
Everyone…
Click your clicker three times 

3. Who Are You? Click your clicker (three times) if...
Everyone…
Click your clicker (three times) if...
...you work for (or own) a Distributor
...you work for Parker Hannifin 

4. About This Workshop Click your clicker (three times) if...
Distributors only…
Click your clicker (three times) if...
...you are in the business of stocking things.
…you are in the business of selling things.
This workshop:
How to sell more, whether or not you stock more. 

5. Presentation Topics 1. Principles of 8. Summary Inventory-Sharing7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

6. Principles of Inventory-Sharing
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

7. Principles of Inventory-Sharing
Everyone…
Click your clicker (three times) if...
...you know how to play the card game “poker” 

8. Principles of Inventory-Sharing
Your opponent
Gambler at another table
You
Who has the best hand?
What if you could buy cards from the gambler at the other table?  

9. Principles of Inventory-Sharing
Your opponent
Gambler at another table
You
Who has the best hand now? 

10. Principles of Inventory-Sharing
Everyone…
Click your clicker (three times) if...
...you would be willing to buy cards from another gambler at another table in a casino
…you would be willing to sell your unwanted cards to another gambler at another table in a casino 

11. Principles of Inventory-Sharing
Buying and selling cards between gamblers at a casino…
in Las Vegas:
“CHEATING”
in wholesale distribution:
“INVENTORY-SHARING”  

12. Principles of Inventory-Sharing
Distributors only…
Click your clicker (three times) if...
...you get orders for items that you do not have in stock (“backorders”)
…you have items in stock for which you do not get orders (“surplus inventory”) 

13. Principles of Inventory-Sharing
Everyone…
Click your clicker (three times) if...
...in the last six months, you have been involved in “expediting”, or otherwise trying to acquire an item more quickly
…“expeditor” is in your job description 

14. Principles of Inventory-Sharing
“Inventory-Sharing” defined:
Formal collaboration between a manufacturer and its network of wholesaler-distributors…
Greater asset efficiency: all collaborators act as if each one owns all of the finished goods inventory in the sales channel
Greater operational efficiency: end-customer demands are fulfilled more quickly, with less effort 

15. Principles of Inventory-Sharing
Inventory-sharing is your
Unfair Advantage! 

16. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU) 

17. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU)
“A” & “B” items
lots of transactions
distributors often stock
manufacturer may stock
everyone makes money selling these items
high service level is easy
not likely to be “shared” 

18. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU)
“C” items
infrequent transactions
distributors might stock
lead times may be long
high service level is hard
good “inventory-sharing” candidates 

19. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU)
“D” items
very rare transactions
no one wants to stock
high service level is very hard
may be money-losing sales
excellent “inventory-sharing” candidates 

20. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU)
“D” items
customers judge the supply chain on the availability of these items
“inventory-sharing” has its greatest value on these items
low sales; high transaction costs and lots of headaches 

21. Principles of Inventory-Sharing
Do your customers judge you on the majority of the time when you execute to their satisfaction? OR
Do your customers judge you on those rare events when you let them down?
Inventory-sharing helps prevent those events that hurt your reputation 

22. Principles of Inventory-Sharing
Distributors only…
Click your clicker (three times) if...
...you are an owner/principal 

23. Principles of Inventory-Sharing
Your inventory 

24. Principles of Inventory-Sharing
Your inventory w/ inventory-sharing…
…with no additional capital investment or risk!
Serve your customers from vast inventories! 

25. Principles of Inventory-Sharing
Distributors only…
Click your clicker (three times) if...
...your sales efforts are mostly confined to a limited geography 

26. Principles of Inventory-Sharing
Your inventory can fulfill other distributors’ backorders.
Potentially sell to thousands of more end-customers, through peer distributors.
Expand your sales territory. No additional salesperson required. 
your current sales territory? 

27. Principles of Inventory-Sharing
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools

28. Benefits of Inventory-Sharing
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

29. Benefits of Inventory-Sharing
Everyone…
Click your clicker (three times) if...
...in the last six months, your household has purchased something at Amazon.com
…in the last six months, your customers’ households have purchased something at Amazon.com 

30. Benefits of Inventory-Sharing
Inventory-sharing helps mitigate these common business challenges:
long lead times
minimum PO quantity/value requirements
expedite / quick delivery premiums
quantity  discount policies
surplus inventory* 

31. Benefits of Inventory-Sharing
Per a recent user survey,
the additional cost of a
lingering backorder:
$81USD
transaction costs
shipped from stock
backordered 1
order entry $ 2
PO placement 3
loss of discount $$ 4
small PO premium charge 5
backorder management
$$$ 6
expedite fees 7
priority inbound freight 8
damage to customer relationship 9
pick, pack and ship 10
shipment receipt 
Closing a backorder in days rather than in weeks saves time & money, reduces stress and improves your company’s reputation 

32. Benefits of Inventory-Sharing
Old-school thinking
“I lose orders if I can’t deliver in a few days.”
“I buy minimum quantities per line items because I have to.”
A better model
“I win orders by accessing inventory owned by other distributors.”
“For non-stock backorders, I buy only the quantity I need, from other distributors.”
More sales opportunities
More purchasing flexibility 

33. Benefits of Inventory-Sharing
Old-school thinking
“No way I’m going to sell to a cross-town competitor”
“Why should I help distributors who don’t invest in their own inventories?”
A better model
“At the right price, I’ll sell selected items to anybody”
“Peer distributors are like an additional sales territory for me, without adding another salesman”
Low transaction costs, high net profit
Surplus inventory reduction* 

34. Benefits of Inventory-Sharing
The benefits of inventory-sharing, in two sentences:
Sell more.
Whether or not you stock more. 

35. Benefits of Inventory-Sharing
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools

36. About WarehouseTWO 1. Principles of 8. Summary Inventory-Sharing7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

37. About WarehouseTWO Click your clicker (three times) if...
Distributors only…
Click your clicker (three times) if...
...you ever have purchased something from a “peer” distributor
…you ever have sold something to a “peer” distributor 

38. About WarehouseTWO “Inventory-sharing” tools over the decades:

39. About WarehouseTWO
WarehouseTWO is the easiest to use, most cost-effective inventory-sharing solution available to manufacturers and wholesaler-distributors. 

40. About WarehouseTWO “cloud”-based software tool (“SaaS”)
easy to set up and use (IT resource not needed for basic functions)
suitable for distributors of any size
no up-front investment or IT effort required 

41. About WarehouseTWO Restricted access (no end-customers)
manufacturers and wholesaler-distributors only 

42. About WarehouseTWO Restricted access (by product line)
“Inventory-Sharing Communities”
you can see only products for which you are an authorized wholesaler-distributor 

43. About WarehouseTWO Created specifically for Parker Hannifin in 2005.
Today, nearly 400 Parker distributors participate at WarehouseTWO. 

44. About WarehouseTWO Parker Seal Group activity thus far:
40 distributors are members
6 distributors post seal inventory
10,253 unique P/Ns 

45. About WarehouseTWO
 Members upload their inventory data to the WarehouseTWO web site
 Members browse compiled data at our web site
When a member finds what he needs, he/she contacts the posting member
No transactions take place at WarehouseTWO
No transaction records
No transaction fees        

46. About WarehouseTWO 1. Principles of 8. Summary Inventory-Sharing7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools

47. WarehouseTWO Features & Tools
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

48. Find an item that you need for an end-customer
SEARCH
Find an item that you need for an end-customer 
WarehouseTWO, LLC CONFIDENTIAL

49. RELATED ITEMS Click your clicker (three times) if...
Everyone…
Click your clicker (three times) if...
...you think N is a valid part number.
...you think N is a valid part number. 

50. Automatic cross-reference in SEARCH
RELATED ITEMS
Automatic cross-reference in SEARCH 

51. ONE inquiry to ALL members of a selected community
BROADCAST REQUEST
ONE inquiry to ALL members of a selected community 
WarehouseTWO, LLC CONFIDENTIAL

52. Mobile-Friendly Screens
Everyone…
Click your clicker (three times) if...
...your field sales people have “smart phones” 

53. Mobile-Friendly Screens
Selected website pages optimized for small screens of “smart phones”
Home / Log-In
Search
Forward
Broadcast Request
Source Detail
Send to Seller 
WarehouseTWO, LLC CONFIDENTIAL

54. POST INVENTORY Congratulations! You can upload your inventory data to
WarehouseTWO!
POST INVENTORY
Distributors only…
Click your clicker (three times) if...
...somebody in your company knows how to create a seven-column Excel spreadsheet. 

55. Offer selected inventory to other distributors
POST INVENTORY
Offer selected inventory to other distributors 

56. WEB MARKET Click your clicker (three times) if...
Distributors only…
Click your clicker (three times) if...
...you own inventory that you are willing to sell to anybody 

57. Offer selected inventory to the world
WEB MARKET
Offer selected inventory to the world 

58. WarehouseTWO Features & Tools
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools

59. Distributor Participation Options
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

60. Distributor Participation Options
Distributors only…
Click your clicker (three times) if...
...you drink coffee
...if you have ever had a “Jamba Juice” smoothie 

61. Distributor Participation Options
Use of WarehouseTWO is by subscription:
Membership
Level 1
Level 2
Level 3
Level 4
Capabilities
SEARCH
Receive BROADCAST REQUESTS
Level 1, plus:
Send BROADCAST REQUESTS
POST (some) INVENTORY
Level 2, plus:
RELATED ITEMS
WEB MARKET
Mobile screens
more capacity
Level 3, plus:
“Unlimited” capacities
“APIs” advanced ERP integration
Daily Cost 
WarehouseTWO, LLC CONFIDENTIAL

62. Distributor Participation Options
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools

63. ROS of Inventory-Sharing
& Keys to Success
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

64. ROS of Inventory-Sharing
& Keys to Success
Purchase items to fulfill your end-customers’ backorders (reduce work; improve customer satisfaction)
Prevent over-buys of backordered non-stock items (buy only the quantity you need to fulfill your end-customers demand)
Replenish active inventory at lower-than-distributor- costs (purchase others’ surplus inventory at reduced cost)
Gain additional revenue (sell to other distributors)
Turn surplus inventory into cash* 

65. ROS of Inventory-Sharing
& Keys to Success
Everyone…
Click your clicker (three times) if...
...you are a nuclear physicist 

66. ROS of Inventory-Sharing
& Keys to Success
“Critical Mass”
In physics:
The minimum amount of fissile material needed to maintain a nuclear chain reaction.
In “inventory-sharing”:
The minimum number of distributors actively participating in an inventory-sharing community to bring value to all participants.
“The network effect” 
WarehouseTWO, LLC CONFIDENTIAL

67. ROS of Inventory-Sharing
& Keys to Success
Keys to Success:
1 “CRITICAL MASS”
Many participating distributors
2 LOTS OF DATA
Post all of your available inventory data
3 MANUFACTURER PARTICIPATION
4 CHANGE YOUR CSRs’ BEHAVIOR
Embrace inventory-sharing to improve customer satisfaction and to save time and money 
WarehouseTWO, LLC CONFIDENTIAL

68. ROS of Inventory-Sharing
& Keys to Success
Classic Open Order Management
Open Order Management w/ WTWO
Start
Start
Receive
Order
Customer
Order
Receive
Order
Customer
Order Do
you have it in
stock? Do
you have it in
stock?
YES
YES NO NO
Does
your mfr.
have it?
Does
your mfr.
have it?
YES
YES NO NO
WTWO
SEARCH
Find it?
YES NO
WTWO
BROADCAST
REQUEST
Find it?
YES
Place PO NO
Place PO
Place
b/o PO
Wait for
delivery
Receive
item
Pick, pack
and ship
Place
b/o PO
Wait for
delivery
Receive
item
Pick, pack
and ship
End
End 

69. ROS of Inventory-Sharing
& Keys to Success
8. Summary
1. Principles of
Inventory-Sharing 7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools

70. Next Steps 1. Principles of 8. Summary Inventory-Sharing7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

71. Next Steps
Identify inventory- sharing communities that are applicable to your company
Review membership levels
Register an account
Automate your inventory data uploads
Train your staffs
Communities available to Parker sealing technology distributors:
Composite Sealing Systems Division
Engineered Polymer Systems Division
O-Ring & Engineered Seals Division
Praedifa Technology Division 
WarehouseTWO, LLC CONFIDENTIAL

72. Next Steps 1. Principles of 8. Summary Inventory-Sharing7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools

73. Summary 1. Principles of 8. Summary Inventory-Sharing 2. Benefits of7.
Next Steps
2. Benefits of
Inventory-Sharing
6. “ROS” of
Inventory-Sharing
& Keys to Success
3. About
WarehouseTWO
5. Distributor
Participation
Options 4.
WarehouseTWO
Features & Tools 

74. Summary
Inventory-sharing allows peer distributors to leverage each others’ inventories, for greater channel efficiency
more inventory for your customers
larger sales territory for your inventory 

75. Summary Active participation in inventory-sharing can result in
better customer service
more sales
lower operating costs
less surplus inventory* 

76. Summary
WarehouseTWO is the easiest to use, most cost-effective inventory-sharing solution available to manufacturers and wholesaler-distributors. 

77. About Those Clickers You may keep your clicker. ...otherwise…
Everyone…
You may keep your clicker.
...otherwise… 

78. Mark Tomalonis mark@warehousetwo.com www.warehousetwo.com
Thank You!
Mark Tomalonis