The first distributor buying group for car audio, the Mobile Electronics Distributor Merchandising Alliance (MED) has signed up 10 distributors and will officially begin buying products from suppliers around April 1, it said.
The group now has a very rough estimate of $100 million in buying power (in retail sales value) with its 10 distributors covering about 13 of the traditional 22 market territories. Meetings with potential supplier members are scheduled through next week and the group hopes to sign up about 10 manufacturer members by April 1.
MED, first announced in December, aims to streamline the distributor buying process, essentially so it isn’t conducted mainly through end-of-the month deals that erode profits. “The overriding goal is to restore a significant level of trust between the distributor community and the vendor community that has to do with inventory management, purchasing forecasting, and solving distressed inventory problems. Basically, [the aims is to] reduce the level of stress that it currently takes to conduct this business. It doesn’t have to be that way. It doesn’t have to be done in the last 2 or 3 days of the month,” Windsor said.
Under the group, suppliers can receive group commitments from distributors, which helps with inventory planning and reduces discounting from overstocks. Also, distributors no longer need to wait to pile up orders in order to place larger orders for better discounts, which translates to better consistent inventory levels for dealers, said Windsor.
For more information Windsor can be contacted at [email protected] or 949-228-2153