Pro Technical lands integrated supply deal

By Industrial Distribution Staff -- Industrial Distribution, 6/1/1999

Rockford, Ill.--Further emphasizing the role the Internet is playing in distribution, Pro Technical Products, Inc. was recently awarded a $59 million contract to supply MRO materials to U.S. Department of Defense facilities in the North Central United States.

Pro Technical is an Internet-based supply chain management company that specializes in procurement and logistics. The firm serves commercial, industrial and government accounts. Peter Provenzano, Pro Technical's director of business development, says the company acts as a virtual warehouse, supplying a range of products purchased both through distributors and direct from manufacturers. He would not reveal Pro Technical's annual revenues.

The majority of Pro Technical's business is in integrated supply contracts, and the firm does about 50 percent of that business with government accounts. About 70 percent of Pro Technical's business is in supplying MRO products.

Pro Technical can be seen as both a competitor to and a partner with distributors. In some cases, the firm competes with distributors who have integrated supply divisions, but at the same time it may buy supplies from those distributors as well.

Terms of the five-year contract with the DOD require Pro Technical to purchase and deliver a variety of MRO products to 14 military bases.

The contract was awarded as part of the DOD initiative to reduce overall costs and more.

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