Parker Hannifin extends e-commerce program to distributors

By Staff -- Industrial Distribution, 6/1/2000

Cleveland-Parker Hannifin plans to make a good thing even better. Plans are in place to expand the Cleveland, Ohio-based manufacturer's e-commerce initiatives to its distributors.

Parker Hannifin is a leading diversified manufacturer of fluid power and motion control technologies.

MRO.com will provide the infrastructure of the e-commerce site, and that will set the stage for participating distributors to partner with Parker Hannifin, chief information officer Paul Carson said. MRO.com is a subsidiary of PSDI, which makes software for asset maintenance. Ultimately, the arrangement will lead to faster procurement of parts for all those participating in Parker Hannifin's e-commerce initiative.

Carson would not disclose the cost for distributors to participate in the e-commerce venture. He preferred to focus on the benefits the platform could bring to the supply chain.

The timing and reason for this manufacturer/distributor alliance is "to bring our distributors with us in this electronic world," Carson said.

The "formal framework," as Carson called it, will give distributors the chance to get in on the "sell side."

Participating distributors in the initial wave of the venture are organized in groups of eight. Six groups have been formed so far. Given the number of distributors who purchase goods from Parker Hannifin, up to 5,000 distributors could partake of the opportunity, according to Carson.

Meanwhile, Duane Collins, chairman and chief executive officer of Parker Hannifin, is optimistic about the venture's benefits to distributors.

"We are wired for e-business, and this initiative is another step forward to drive our motion control systems strategy like never before," Collins said. "Our advantage is that we have the engineering know-how, the product breadth and the service reach to be able to attack our customers' costs and deliver system solutions to improve their performance. That is not only premier customer service, that is a recipe for value creation."

Chip Drapeau, president and CEO of PSDI, is equally optimistic.

"The fact that Parker turned to us to strengthen its e-business architecture is a validation of MRO.com's overall strength in the B2B online industrial MRO market, ''Drapeau said. "Parker recognizes the value of providing a streamlined system to improve the overall efficiency of customer transactions, while at the same time opening up new opportunities to a broader audience."