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42•


2011PurchasingDecision- Makerssurvey (Continued from page 40.)


Canadian-made SKUs, during the past 2 years your


Compared with U.S. and


PURCHASES OF FOREIGN-MADE SKUs have:


·Remained the same –37%


Increased –53% Decreased –10%


If they have increased, what were the MAIN REASONS?


•Price –52% •Availability –25% •Quality –11% •Design Features –6% •Other –6%


More respondents increased their purchases of foreign-made SKUs as last year. Also, they cited nearly the same main reasons for buying from overseas — with price and availabil- ity becoming a stronger factor.


Does your company engage in CENTRALIZED PURCHASING?


• Exclusively: 30%


• For certain lines: 43% • Not at all: 27%


Percentage of respondents using cen- tralized purchasing exclusively in- creased somewhat, while “for certain lines” dropped eight percentage points.


VMI


Do you have VENDOR MANAGED INVENTORY for some lines?


4


Yes: 13% 4 No: 87%


The number of wholesalers using VMI dropped a small amount.


inventory purchasing decisions?


In your company, WHO IS AUTHORIZED to make general


Branch managers..........................73% Ass’t branch managers.................11% Counter managers...........................7% Other................................................45%


This category has changed very little since the Purchasing Survey began, but this year far more branch managers hold responsibility for purchasing decisions.


• Be sure to visit www.thewholesaler.com for web exclusive articles and videos! • ONWHICHBASISdo you gauge suppliers’ performance?


As with last year, business relationships are very important in a personality- driven industry. These numbers are nearly identical to last year’s results.


(More survey results on page 44.)


Does your company buy stock


from master No: 42% distributors?


If so, how often?


Yes: 58%


Monthly: 42% Quarterly: 9% Annually: 3%


Weekly: 46%


This category remained essentially the same as last year.


1...................................43% 2 to 4..........................23% 5 to 10.........................14% 11 to 20.........................8% 21 to 35........................3% More than 35..............9%


Interestingly, compared to last year, far more wholesalers reported operat- ing just one stocking location, while significantly fewer have more than 35. The other numbers remained nearly identical.


NUMBER OF STOCKING LOCATIONS your company operates is:


Including headquarters, the


Purchasing a larger % of product through our buying group: 40% Aggressively pursuing volume leverage with suppliers across locations: 30% Reducing purchasing overhead activities: 21%


Reducing SKUs: 21% Automating purchasing and supply chain processes: 17%


Simple requests: 16% Other: 14%


PURCHASING COSTS?


How are you looking to cut


Results for this category changed somewhat from last year, with respondents cut- ting back on pursuing volume leverage and more turning to buying groups.


Upon what do you base your PURCHASING DECISIONS?


Product quality and brand recognition –65% Price –48%


Relationships –46% Other –7%


A new category last year: Wholesalers overwhelmingly want to purchase name brands that offer known quality, but still remain cost-conscious. These results are similar to last year’s, but price has become somewhat less of a consideration.


•THE WHOLESALER® — FEBRUARY 2011


Ease of doing business: 64% Relationships: 59% Better margins: 51% Fill rates: 50% ead times: 47% Increased sales: 35% Operational cost reductions: 25% Inventory reductions: 20% Labor savings: 10% We don’t measure it: 5% Other: 4%


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