DATE:December 19, 2017
TO:All I.S. Members and Affiliates
FROM:Joel Vockrodt & Mike Gentile
Well, no one can say that 2017 – our 40th anniversary - has been an uneventful year for our industry! In spite of all the external change and noise, our group has been able to continue in its usual progressive mode. Many times the best strategy is to set goals where we can influence or control the outcome and not get distracted by external issues that divert our focus and efforts away from our attaining those goals. We are proud of what we accomplished in 2017 and remain very optimistic about 2018.
2017 PROGRESSIVE GOALS ACHIEVED
Affiliate Member Program–IS dealers now have access to many of AFFLINK’s programs and competitive private label Jan/San product line.
Opportunity–We launched a program with RJ Schinner, a privately owned, national Jan/San distributor; this program offers dealers broader access to a more competitive and unique product line of Jan/San and breakroom skus. For more information, contact Tom Ashburn, .
–This new affiliate program was formed in order to give many of our current members and other former OFUSA members a place to land (after the closing of OFUSA earlier this year). The program lets them continue to have access to the vendors and program they had as OFUSA, but also allows them to benefit from the back office support of IS and our many other programs. This is just one more example of the IS ‘BIG TENT’ strategy. Want more detail? Contact Charles Forman, .
IS+ -This program meets Independent Stationers’ strategic goal of creating multiple membership opportunities that address the varying requirements of all dealer sizes, operating models, and needs. IS+ provides its participants additional rebates for supporting key vendor partners by growing direct buy purchases of branded and contract product. Questions? Contact Mike Foster, .
Spark Series Webinars – We held numerous webinars focusing on the latest trends in Online Marketing. Topics included: Google Updates & Predictions, Digital Marketing Trends, Facebook Ads, Streaming & Remarketing, Email Best Practices, Email & Website Analytics, Blogging, Instagram for Business, Inbound Marketing, Social Media Trends, Buyer Personas & Journeys and Influencer Marketing. Contact Janet for more information.
IntelliWeb Lite – Hard launch of the IntelliWeb Lite Digital Marketing Program was made, giving dealers, who already have a robust website homepage, the missing key components of monthly promotions, lifestyle blogs, promotional emails and social media content. The IntelliWeb program provides all of these elements for dealers, all at an extremely low cost. Janet can answer any questions you have, .
EPIC 2017 – Our annual convention is always designed for dealers to engage in peer-to-peer networking, dealer-focused educational seminars, and attend the supplier tradeshow. 2017’s event, co-located with ISSA, offered attendees an excellent opportunity to increase their knowledge of the Jan-San industry and suppliers. Watch for EPIC 2018 details to come in the spring, but block these dates now to be in New Orleans for October 15-17 2018!
UPS Rebate Program–This great UPS program went from a 23% fixed rebate payout to a tiered structure with a top rebate of 27%. Based on our historical UPS spend, the rebate would have been 25% under this new program for the past 7 quarters. This enhancement has garnered additional membership interest which will help push our volume up to qualify for the top 27% rebate tier. Questions can be directed to Jeff Matthews, .
EFT- No more waiting for the check to be mailed. All shareholders and Pinnacle Affiliate members now get their quarterly rebates electronically.
Membership–During 2017, we saw 27 new dealers join IS under one of the membership programs.
RDC Cost Comparison – Ty and Tom ran summary reports for 48 different members, helping them to understand the cost savings buying through the RDC program. Talk to Ty to have a cost comparator run on your business.
Operating Expenses Reductions–IS continued to watch expenses, lowering costs for the ERP system ($38,000), network costs ($8400), Phone lines ($1200), and IBM EDI network ($3000).
Total Savings $50,600 annual!!
RDC Credits – We created an automated process for RDC credits and restocking fees, making it easier and more efficient, and with fewer delays and reduced manipulation of these invoices.
2017 has certainly been another year of progressive change and opportunity for thegroup.However, as we continue to experience consolidation within the independent dealer channel (IDC)and in the manufacturer space, “buying right” is ever so important. Supporting our preferred suppliers is critical if we want them to continue to support us in the many ways which they do today.
Aside from buying directly from our preferred suppliers there is another way to achievedirect buy rebates and lower COGs vs. wholesale? Yes, there is! That method is the IS RDC model.Hundreds of IS members have enjoyed the operational and cost benefits that the RDC model provides.Dealers use the RDC cost comparator in Acsellerate to make stocking decisions (this is available at no charge for Acsellerate users). For non-Acsellerate dealerships, IS can run this report for you at no charge.
Why should you consider using the RDC as your source? Here are two concrete real-world examples of changes made by significant suppliers.
Avery: No longer paying a 1% Wholesale Direct Rebate
Fellowes: No Longer paying a 0.71% Wholesale Direct Rebate
Convert your wholesale buys to RDC and pick up the direct rebates these two vendors continue to pay. It’s these two this year –no one should make the mistake of thinking this will be an isolated scenario.
The RDC model is YOUR unique tool to useeffectively wheneverand however it makes sense for your dealership.
2018WHAT’S NEXT ON THE AGENDA
That’s a lot of things done during the year! That said, we have no intention of sitting back in 2018, merely watching the parade of changes and occasionalindustry dysfunction roll by. Independent Stationers will continue to lead the IDC with progressive and responsible leadership. Some of our 2018 Strategic Goals are:
GROW the IS member base to leverage the group’s purchasing, operational efficiencies and programs to help all members compete effectively.
INCREASE the group’s focus and support in emerging product categories, i.e.: Jan/San, Breakroom, Industrial, and Safety.
ENHANCE the current RDC model to be a more efficient and cost effective way to buy DIRECT.
RE-BRAND ISin order to position the group to be identified as more inclusive of all
“Workplace“products.
INCREASEface2face interactions with all members to improve communications, program participation and greater involvement in your group.
RE-EVALUATE and assess each of the group’s partner’s/collaborator’s value in delivering on the IS value propositions. We will change partners if neededand/or add new partners to fill gaps in service we can provide to you.
ASSESS IS’s working capital and financial strength, and develop resources and skills to enable investment in strategic initiatives.
We would not have achieved our 2017 goals, nor will we be successful in tackling 2018, without your commitment to the group. We value your support and trust, and take it very seriously. Please do not hesitate to reach out to us at any time to express your opinion or offer advice. A cooperative is only as healthy and strong as its collective members. We wish you all a Merry Christmas, Happy Holiday Season and a prosperous 2018.
Joel VockrodtMike Gentile
Chairman of the BoardPresident & CEO