Success Stories

An Internet Sidewalk Sale

According to Ronny Cooper, purchasing agent for J Supply Company, Inc., an industrial distributor based in Rome, Georgia, if you don't belong to Trading Partner Connect, Activant's Internet trading network, there are few solutions to the problem of dead stock.

"I guess you could have a sidewalk fire sale," he says with a laugh. "But I think lemonade stands already have that market cornered."

Regardless of how much they sell or how quickly their inventories turn, all distributors have to deal with some dead or slow-moving stock, and historically, they have had little recourse but to let that stock collect dust, stunting turns and cash flow in the process.

Activant Trading Partner Connect is a real solution for distributors with the problem of dead stock.

"I didn't realize the importance of building relationships with other independent distributors until we implemented Trading Partner Connect," says Cooper. "Every new relationship we form opens another channel for unloading and procuring dead stock."

A Conduit for Relationships

J. Supply Company prides itself on offering a diverse mix of products for the automotive, steel, pulp and paper, and textile industries, and while a down side may not be apparent, J Supply's varied inventory has left them with plenty of dead stock in its 37 years.

"Customers come and go, and some products lose their demand," explains Mark Bohn, COO of J Supply. "These things can add up to a hefty collection of dead stock, and we wanted to move ours ? that's why we pursued Trading Partner Connect."

Upon joining Trading Partner Connect, you identify and form trading relationships with other distributors who are actively selling stock you have marked as inactive. Your trading partners can then see the dead stock in your inventory in real time, and in a few clicks, initiate a transaction that benefits you both.

While J Supply has had success selling dead stock over the network, they've spent just as much time, if not more, purchasing other distributors' dead stock at discounted prices. Cooper estimates that 80 percent of the business they conduct over Trading Partner Connect involves purchasing.

"Whenever I run my purchase order requirement reports, Trading Partner Connect lists the available dead stock of all the distributors we have relationships with," says Cooper. "We've been able to expand our lines and we've gotten some great deals."

In fact, J Supply has had such success with Trading Partner Connect that they're planning to implement an incentive program, which will reward employees who conduct the most business over the network. Says Bohn, "Trading Partner Connect has been a great investment for us ? not only is it a conduit for moving dead product, but it is also a powerful networking tool that allows you to expand your offerings via your trading partners."

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