Distributor's Corner August 2008:
A Distributor's Point of View
I have been given the opportunity by the Roofers Coffee Shop to present in this column, the "Distributors Point of View". Having spent the last three decades at your service in various roles in the roofing industry, particularly involved in the distribution business, I have developed a fondness for the contractor community and am particular those that make roofing their career. In this first column I hope to give you some insights into our marketplace and the role of the distributor.
In simple terms, distributors buy things and then sell things. We call ourselves "one-step distributors" as we are the one step between the manufacturers and the contractor. We play a very vital role. By my count there are approximately 400 one-step roofing distributors in the U.S. with total branches numbering above 1500. Our coverage insures that in whatever market you are in, at least one of us is close by.
Manufacturers depend on distribution to deliver their goods to the market. We provide inventory locations, delivery services and a knowledge base that allow the manufacturers to focus on what they do best, producing quality goods at a reasonable price. We are there for the manufacturer, willing to buffer their production by taking inventory during the slow sales months thereby insuring they can run their plants efficiently year round. We also provide cash flow for the manufacturer as we pay our bills promptly. Successful manufacturers know the value of distribution and have formed strong partnerships. In short, we literally provide the heavy lifting on behalf of the manufacturers.
Most roofing contractor's key professional relationship is with their local distributor. Most roofers have their favorite supplier that has earned the majority of their business. The distribution business is no different than most businesses these days, a service business and people business. Technology has made our industry more efficient, but it will never replace human interaction. During my years in distribution, I found that my business relationship initiated as customer and supplier. As I progressed in my career I started to view my customers as business partners. With many of my key customers, the relationship transcended to a true friendship. Yet, we know you have choices. The competitive nature of our business is a healthy ingredient that challenges each of us to constantly improve our businesses on your behalf.
Distribution's commitment to the roofing industry runs deep. With all we provide, we are able to achieve an efficiency level on operation that I have always found incredible. We come in many shapes and sizes. There are small one branch, one owner operations; regional operations with multiple branches and national chains that have operations throughout the country. In my travels, I have been in about 300 different distribution yards. Every one is a little different, yet hat one connecting thread is we are the place where the Roofer is King. On behalf of all roofing distributors, a big THANK YOU for your support and partnership. I invite your questions, comments or suggestions for future topics and look forward to sharing my thoughts from a Distributors Point of View with you. I can be reached via email at mailto:eward@nemeon.com.
Earl Ward is a 28 year veteran of the roofing industry primarily, in distribution and most recently as owner/managing partner of a roofing and siding distribution company in Minneapolis, MN. Mr. Ward is President of NEMEON, Inc. a cooperative consisting of 169 independent roofing and siding distributors spread across the United States and Canada.
