Distribution.

By way of a change this Technical Topic is going to deal with distribution. Not as you might expect distribution in the physical sense, but the availability of our product. Redirack is a pre-engineered product manufactured in Rotherham to meet a wide range of industrial storage needs. The system has two basic components the frame and the beam. These are used together to construct adjustable storage systems. If you consider the demand for our product it can be categorised as either new build, or replacement or repair of an existing system. The demand can vary in size from a single replacement part to a complete high bay storage system costing upwards of £1million. As an organisation it is in our interest to ensure that our product is available to meet these varying demands. Phil Culling our Managing Director explains our philosophy and how we do it.

RI. Phil can you start by explaining your distribution channel.

PC. "We physically distribute our product from the manufacturing plant here in Rotherham direct to the end user or distributor primarily using curtain sided trailers. We have no minimum quantity or order size so if you wish you can order a single locking pin via our sales office and it will be supplied from here. However, we do want our customers to receive the best possible service so we encourage them to source small quantities of spares and new product from our distributor network. "

RI. When you say small quantities, what is small?

PC. "When considering new product a small order would have a value of under £5000.00. For spare parts it is less easily defined but generally under £500.00. These cut-offs are not rigorously applied, we consider each case on its merits and consider any existing relationships, for example some of our customers have been dealing direct with us for decades. To refer them to a local distributor might be misconstrued, irrespective of the excellence of the distributor. Likewise, a company with a large new build project might wish to deal with a distributor. We have no problem either way and it has worked successfully both ways."

RI. Surely having local distributors only creates confusion for the customers?

PC. "It shouldn't! We have local distributors to cater for two specific types of demand, one the customer with an urgent need for replacement parts, and secondly for a new customer with a relatively small requirement for new product. In both these situations our speed of response and ability to provide the type of personal service that is required is limited by our available resources. We should never be approaching the same customers as our distributors, and as we support our distributors closely we always have a unified approach."

RI. Doesn't having a sales team selling direct cause your distributors to be wary of letting you know what they are doing?

PC. "No. Why have distributors to improve your customer service and then undermine their position? We invest heavily in our distributor support and we get it right. Winning the SHEDA supplier of the year award twice in three years says we can't be doing too much wrong. We have productive partnerships with our distributors, and that means productive for both parties. They help us keep our users happy, providing local stock and support, and in return we are totally committed to them and their objectives."

RI. What type of company would become a Redirack distributor?

PC. "An independent stockist of storage and materials handling products. We have around 25 distributors forming a nationwide network, and we have Axis Industrial in Scotland and Storage Systems in Ireland offering our product in areas where we have no direct representation. As an associate member of SHEDA, the distributors' association we support its aims and objectives, which stipulate levels of performance and professionalism of member companies. This means we get high quality representation which benefits our customers and means our product is applied properly."

RI. When you talk of stock, what levels of stock are available. As a customer what can I expect to get from stock?

PC. "Large quantities of the most popular frames and beams are always in stock within the distributor network and our quick stock service. Our ten most popular frame sizes and beam lengths are always available from stock - that means from order to site within seven days - and any short lead time demand should be satisfied from the 300 tonnes of stock in the system at any time. Our distributors don't stock large quantities of our product - quick stock fills that need and it works very well."

RI. Thanks Phil, most interesting.