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More distributors buying foreign products

-- Industrial Distribution, 2/1/2008

More than half of all industrial distributors are buying products from offshore, off-brand suppliers, according to a new study. And more than 52 percent of distributors say they plan to increase their overseas purchasing.

The findings are revealed in Stephen D. Griffith's and Scott Benfield's new book, “Disruption in the Channel,” which shows that distributors are purchasing between 10 percent and 30 percent of their total product offerings from foreign suppliers.

The authors surveyed nearly 200 distributors, finding that buying offshore products saves an average of 35 percent. Those distributors reported that the quality of those goods is equal to or better than their domestically made equivalents, whose manufacturers don't add enough value to justify their premium prices, they said.

For more information, go to www.disruptioninthechannel.com.

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