is.group chief Mike Gentile believes there is one thing that has been holding back the group’s RDC programme to date and that is cost for dealers. But not for much longer, he hopes. The dealer group has just signed a letter of intent with IT supply chain services supplier Synnex Corporation to become its new third party logistics (3PL) provider.
"Synnex is a lower cost operation than our previous provider, Excel, which will enable us to pass our cost savings down to our dealers," Gentile told OPI. "In fact, it should bring costs down dramatically, which will ensure the sustainability of our RDC model."
The new 3PL provider is also expected to offer dealers access to a greater breadth of full-line products and services, including IT services and equipment, as well as preserving the benefits and dealer control of the is.group RDC model.
The transition from Excel to Synnex is expected to happen over the next few months. In a statement given during is.group’s annual meeting in Tampa, Florida, in mid-May, Jim Estill of Synnex Corporation commented: "Offering 3PL capabilities to is.group aligns with our core competencies. At Synnex we are known for our ability to handle back-end logistics with higher quality and at less expense than our clients can do themselves. We look forward to the opportunity to work with is.group and its members."
Trace Marrs, chairman of the is.group board of directors, added: "Synnex is a perfect fit for the independent dealer channel and helps us achieve our long-term goals of preserving our RDCs. Entering our third year in self-distribution has shown that our model is not only sustainable, but that it is a priceless tool helping all of our stocking is.group independent dealers to manage and grow their businesses more effectively."
Designed by is.group and its board to offer dealers a more efficient way to buy direct, the RDC programme allows the independent dealer to purchase from multiple manufacturers in a mixed pallet.
