Is.group looks to new logistics system to compete
By Tom Edmonds -- Furniture Today, March 14, 2004
Indianapolis — Indianapolis– The is.group, a buying group, has developed a new distribution and logistics system designed to help independent office supply and furniture dealers compete with big-box category killers.
Targeting chains and distributors such as Staples, Office Max, Office Depot, Boise and Corporate Express, the new systems will provide member dealers with faster delivery and better margins.
"We are done playing David to their Goliath," said John Kreidel, president and chief executive officer. "The current dealer supply chain model is costing our members money, so we are changing it. We are getting rid of inefficiencies and modernizing our logistics and operations."
Three regional distribution centers — in Indianapolis, Fontana, Calif., and Mechanicsburg, Pa. — form the backbone of this new system.
Independent dealers traditionally serve high-growth small and mid-size businesses, known as office furniture's mid-market. But in recent years, major retail chains, such as office product superstores, have gained a greater share of the overall office products market.
"Taking control of distribution operations puts us on par with the giant retailers and secures our future," said Harry Macey, is.group board chairman and owner of Perry Office Plus in Texas. "We can provide small and mid-sized businesses with a full-range of office supply products at prices and a level of service that equals or surpasses what the competitors can offer."
Set to open in May, the distribution centers will stock about 2,000 items from more than 40 manufacturers.
The announcement of the distribution centers is the second big move for is.group this year. In January, the co-op acquired Express Computer Supply, a leading wholesaler of IT products, the fastest growing segment in the office supply industry. Founded in 1977, is.group has 700 members in more than 1,000 locations in all 50 states.
Collectively, is.group members produce $3.10 billion in sales to approximately 640,000b businesses.
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