supplyFORCE begins Internet procurement

By Staff -- Industrial Distribution, 11/1/2000

King of Prussia, Pa.-Fresh after signing national distributors Motion Industries and C.L. Watt to its network, supplyFORCE.com prepared to open its Internet marketplace.

The company expects to initially offer Web procurement of about 700,000 stock-keeping units to customers in more than 30 major geographic areas. Startup was set for mid-October.

"There will be key distributors in each major area across the U.S. that will be fully functioning to support Web-based procurement," communications director Jane Waltman said.

Formed last year by Affiliated Distributors, supplyFORCE.com has built the largest network of independent distributors and branches in North America, with more than 350 firms in 3,900 locations. The company says it holds top market share in electrical products; power transmission and bearings; pipe, valves and fittings; and industrial supplies, which includes safety equipment.

The company expects to roll out Internet ordering to its entire membership by early winter. End users may search products and order from an electronic catalog and choose from distributors listed according to region. A demonstration version of the service has been available online for several months for customers and prospective suppliers and members to try out.

"The network is fully functioning. We now have more than 40 accounts with Fortune 500 companies like Kodak, and Bausch and Lomb," said Waltman. "The network is providing them with delivery-same day when needed-and the technical product support. In some cases there is vendor managed inventory in warehouses along with supplyFORCE employees."

Late in September, the company broadened its offerings in heating, air conditioning, plumbing and industrial piping products by adding C.L. Watt, a cooperative of 55 independents. Founded in 1968, Watt's members have $3 billion in sales from more than 540 locations.

"By joining forces with supplyFORCE.com, we are bringing together two well-established distributor networks with similar customer-focused and entrepreneurial philosophies," said Richard Reese, president of Standard Plumbing Supply of Salt Lake City, Utah, and chairman of the board of C.L. Watt. "C.L. Watt's members need to offer their customers an e-commerce based solution and with its private label distributor solution and marketplace offering, supplyFORCE.com will provide them with several options from which to choose."

The addition of Motion Industries, which reached $2.2 billion in sales last year, also gives the network a leading position in power transmission and bearings products. CEO Bill Stevens said becoming a member would help Motion Industries serve customers who want to purchase all their MRO supply needs from a single source and increase its participation in national accounts.

Finally, Platt Electric Supply, a $300 million electrical distributor based in the Pacific Northwest, signed up early last month.

SupplyFORCE.com CEO Bill Weisberg said those and other moves to increase its distributor network will enable the company to serve both shared e-commerce and national account customers with a one-stop shop solution.

"It provides supplyFORCE.com with the power to deliver product support and fulfillment. Our relationship with these distributors is our greatest source of competitive advantage," he said in a prepared statement.

Waltman said supplyFORCE.com would continue to add members as long as there is not "significant overlap" in product coverage with existing distributors. The company also expects to add new product categories at customers' request. Member companies have $22 billion in sales annually and hold about $3 billion in inventory at any moment.