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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.
Cross-Channel Expertise
Exceptional Service & Support

The company's major vendor partners include the industry's big names:

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  • Microsoft

  • Cisco

  • HP

  • Lenovo

  • Intel

  • Samsung

  • Sony

  • Toshiba

  • 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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