Success Stories

Distributor Uses Trading Partner Connect B2B Alliance to Beat Manufacturer Minimums

Like many distributors, Bergen Industrial Supply Co. has had to deal with minimum quantities when purchasing directly from a manufacturer. Because of these minimums, it was possible for a $30 item to end up costing as much as $2000 in dead stock.

A New Way of Doing Business

This way of doing business had distributors asking the question: is there a way to bypass these costs while obtaining the stock necessary to satisfy customers? B2B Alliance, a component of Activant Trading Partner Connect, makes the answer a resounding yes.

Michael LaPorte, Vice President of Bergen Industrial, remembers what it was like before his company began using B2B Alliance. "In the past, we've cobbled together orders of things we really didn't need to make a certain minimum," says LaPorte. "And those extra items just sat and sat."

By providing a dedicated network of collaborative commerce, B2B Alliance gives distributors new purchasing options. Now, if distributors need a single item, they can use the solution to browse a partner's inventory, thus avoiding costly manufacturer minimums.

And since B2B Alliance uses the Internet, transactions take place at the stroke of a key. "I don't have to spend time on the phone calling other distributors to source the item," says LaPorte. "We hit a button, and we often have five or six options in seconds."

Trading Dead Stock for Profit

So what about that dead stock that "just sat and sat?" Trading Partner Connect helped move it. By identifying and forming trading relationships with distributors who are selling stock that has been marked as inactive, LaPorte turned dead stock into profit.

"Trading Partner Connect has easily paid for itself," LaPorte concludes. "We've saved - and made - thousands buying and selling inactive inventory with other distributors."

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