Find me a Buyer

Project Overview

- Benchmarking project for a MRO distributor currently sourcing the products from a purchasing platform and willing to switch to a supplier base. Need to benchmark the terms of the contracts of other MRO distributor when dealing directly with manufacturers.

-Looking for an expert with extensive experience in the MRO relationships between manufacturers and distributors who can provide insight. The work would imply a meeting or a call (between 1 and 2 hours), being a one time consultation.

2. Company Profile

- Canadian MRO distributor

[url removed, login to view] of focus: Cutting tools, tooling, power transmission, safety equipment & consumables

ii. Examples of suppliers: Sandvik, Kennametal, St Gobain Norton, Dormer, SNC, 3M, Makita

- Market:

i. Revenue: 100M CAD

3. Benchmarking effort

- Understand the normal sourcing terms and practices of MRO distributors, depending on their size (from smaller companies to best in class examples, focusing on equivalent competitors):

- Typical terms of the contracts with the manufacturers (length, payment terms, flexibility, other conditions, …)

- Pricing structure

1. Front margin: % discount on supplier gross price (net price + average commercial margin % [margin range for the distributor] in each of the areas of focus

2. Back margin: year-end rebate- fee invoiced by the distributor to the supplier. [Typical range of “year-end-rebates/fee” depending on product category & spend with the supplier]

a. Volume / growth based

b. Services offered by the distributors and subsequent compensation (listing, marketing efforts, communication of sales volumes information, web catalogue, merchandising, exclusivity, …)

Køber Søgning

Projekt ID: #13310823

Om projektet