Finding The Edge: A Letter from Jordan Kudler, Chairman of the Board, Independent Suppliers Group

Independent Suppliers Group chairman Jordan Kudler published an open letter calling for unity within the IDC in order to leverage purchasing power to help achieve a lower cost of goods. 

Highlights of the letter include:

At its core, Independent Suppliers Group is a “Buying Group.” Dealers coming together to aggregate their purchasing volume and leverage the “power” of that collective strength to receive lower cost of goods. 

From that principal concept, we have evolved and derive many other benefits. Opportunities and solutions to competitive challenges that most, if not all of us, wouldn’t be able to achieve on our own. Lower marketing costs, access to a national account program, low-cost website development and maintenance, peer exchange, access to, and market penetration in adjacent markets, are some of the most critical ones that come to mind.

What can we, as a collective, an amalgamation of individual businesses do, to level the playing field? To gain our own leverage? Each one of us has an innate instinct to go our own way, to do our own thing. After all, isn’t that the very essence of being independent? Something that, I for one, would never want to forgo. The ability and freedom to operate my business, how I see fit.

We can start with taking a page out of the three largest competitors’ playbook, and neutralize one of their greatest strengths; lower cost of goods. That can only happen by unifying and supporting specified “Brands,” “Product Selection” and “Categories.” We have several manufacturers within each product category. That means we have several choices. Perhaps, one might even say too many choices. 

If we can all agree to get behind the same vendors within a category, just imagine how much more leverage we can achieve. That’s the power of Unity. The value of Quid Pro Quo, give something and get something in return. Don’t stray, but get closer and stronger.

Almost two years ago, we merged three organizations, in efforts of reducing redundant operating expenses, but even more so to leverage our collective strengths through unity. Each of these three pre-merger organizations had evolved into more than each had originally and individually intended, however; at our core, we are a “Buying Group” that  already has significant leverage to build upon. It’s high time that we come together and take full advantage of that unique attribute.

To view the letter in its entirety on LinkedIn, click here. 

Large US dealers form new organization

Within days of Jordan Kudler’s open letter, reported that some of the largest independent business products dealers in the US have joined forces in an effort to become more competitive. According to OPI, the consortium of resellers has established a legal entity that goes under the name of Supply Chain Investment Group (SCIG). Neither the number of dealers involved, nor their identities, have yet been made public.

Speaking on behalf of SCIG, independent dealer channel (IDC) principal and founder of Pinnacle Affiliates Dave Guernsey said SCIG had been formed to “explore initiatives that would further enhance each member’s ability to compete successfully in the post-pandemic period.”

In the statement to OPI, he added: “SCIG views its work product to be determining and acting upon ways in which members can work together, and with industry partners, to rapidly build scale, lower costs, improve business processes and expand market reach. Any number of combinations and projects, including joint ventures internal and external to SCIG, are being examined.”

Source: LinkedIn
Source: OPI Net