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Case 4
Low Margin Business

This private distribution company based in PA sells IT hardware & Solutions and electronics to resellers and retailers, with annual revenue of $3B and a margin as low as 3%. It has got 5 distribution centers in North America: Mid-Atlantic, West Coast, Mid-West, South and Ontario, Canada. The company has extraordinary cross-channel expertise and exceptional service and support.
The company's major vendor partners include the industry's big names:
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Microsoft
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Cisco
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HP
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Lenovo
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Intel
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Samsung
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Sony
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Toshiba
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Dell
The CSF however lies in the company's capability to sustain the profit margin consistently through the use of the purchasing power via rebates, discounts, promotions, and coupons.
The company tried and failed an Oracle implementation of $20MM. Microsoft Dynamics AX is then implemented later to provide the unique capabilities to track and manage the vendor benefit programs such as rebates, discounts, promotions, and coupons.

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