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Business to Business The Situation A major heavy construction equipment manufacturer sells through distributors who provide extensive services to construction companies, developers and rental companies. Many of these companies operate their equipment on multiple shifts when the distributor is closed. Lost time due to breakdown of equipment is very costly to its owners, sometimes translating into tens of thousands of dollars a day. Although the distributors stock many standard parts for the most common equipment, an inventory of all parts is not practical or financially feasible. The Challenge The challenge is to provide the equipment owner/operator with access to replacement part ordering on a 24/7 basis through a single fulfillment center designed to respond to breakdown needs without circumventing the distribution channel responsible for selling equipment often priced in the hundreds of thousands of dollars. The Solution The solution we developed uses our Patented Distribution Relationship Management® Software. Owners/operators are able to go to the manufacturer website and specify the exact products they wish to purchase and are then prompted to provide information as to who their distributor is. The product purchased and shipped directly from the manufacturer to the owner/operator tradesman who coordinates and completes installation. Whichever distributor is chosen is then credited for the sale and the net profit they would have received by virtue of an offline sale is forwarded to them. The resulting time/cost savings to the owner/operator is dramatic, even if the part was delivered by air.
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