Understanding Jan-San Redistribution

Dave DeWalt

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This guide is written for Jan-San (Sanitary Supply) manufacturers who are exploring the opportunity to go to market via wholesaler...

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This guide is written for Jan-San (Sanitary Supply) manufacturers who are exploring the opportunity to go to market via wholesalers, as well as those who have a long history of working with wholesalers. It is also a resource for Jan-San distributors who are considering using wholesalers as a source for certain lines, particular product types, or at various times throughout the year. In all cases, our intent is to help Jan-San manufacturers, wholesalers, and distributors create programs which will foster long-term success for all parties. This manual pinpoints real economic and supply chain efficiencies. Understanding Jan-San Redistribution is a quantitative educational tool for Distributors and Manufacturers alike to make fair, balanced, and informed business decisions about buying/selling through wholesalers. Wholesaling is an efficiency option (with definable and measurable benefits) for distributors to procure, and manufacturers to make product available, and is truly a growing force in today's Jan-San environment which should be better understood by all. Key issues addressed in the manual are: Manufacturer revenues and costs compared for Direct vs. Wholesaler sales Distributor costs compared for Direct vs. Wholesaler purchases Structuring of Manufacturer/Wholesaler programs to reflect and maximize value of Re-D Appropriate growth expectations/trends for Manufacturers entering Re-D program Impact on Manufacturer/Distributor relationships Appropriate expectations outlined regarding lines within a Wholesaler "Dollars and cents" analysis from detailed case studies within and outside of SSWA Math Tools and Cost-to-Serve Comparisons provided for comprehensive evaluation Use this Guidebook as an essential component in your company's training program to understand the impact of Redistribution on Sales, Finance, Logistics, Marketing, Customer Service, and Supply Chain relationships.