While we’d be remiss not to mention that the current edition of BICSI News Magazine features an article on Aisle Containment from CPI’s Global Technology Manager, Ian Seaton, we’re also excited to see the July/August 2012 issue includes a compelling look at the value of distribution as it relates to our industry.
Written by Bill Lorey, Vice President of Emerging Technology for Accu-Tech, this two-page article, entitled “Buying Through Distribution: A Value Proposition,” provides a breakdown of how and why the business model of manufacturers to distributors has been successful for over 50 years.
Speaking with over 38 years experience in the distribution model himself, Lorey’s piece delves deep into how the information technology services (ITS) industry in particular benefits from the manufacturer/distributor model, including its ability to:
- Allow customers to buy in bulk, thereby leveraging volume discounts
- Offer local warehousing, which helps offset shipping and delivery cost
- Maintain healthy inventory while ensuring compliance at local warehouses
- Ensure order accuracy through a detailed bill of material (BOM)
- Educate its customers through on-going training, seminars and other events
From a cost and credit standpoint, Lorey points out that “because distribution provides accounts receivable protection, manufacturers have more flexibility to focus their time, resources and cash flow on product innovation and new technologies.”
As manufacturers ourselves, with a strong network of global distributors, including Accu-Tech, CPI’s track record of flexibility and product innovation in the marketplace certainly justifies Lorey’s belief.
Helping you find the perfect balance between your IT infrastructure storage needs and the methods by which you obtain that storage is our pleasure. Give us a call today at 1-800-834-4969 or drop us an online note to discuss distributors in your area and make your next project with CPI a complete success.