Monday, December 15, 2003

Note on PartsLinx Distribution Software Private Trading Exchange

According to Mike Jarmusz, PartLinx CEO, it is difficult for individual distributors to win national customers and nearly impossible to service national accounts alone. Distribution software was the key to their strategy. The largest national customers are often the “gorilla” in the supply chain and meeting their unique and exacting demands can be a costly burden. “The national customer wants it all,” Jarmusz said. “They want to minimize their transactions and purchasing costs, and at the same time offload some of their overhead and administration by utilizing the value added services of the distributors. If you are a single appliance parts distributor, this scenario may nickel and dime you out of the national accounts market.” PartLinx knew that the answer to the national accounts dilemma could be found in bringing together many distributors from different regions to collectively service their national customers, but to be truly cost-effective, they needed a technology solution that would integrate the many disparate back-office solutions of their members.

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