According to the report, some supplies offer higher margins and better profits than other products for wholesalers, but many do not always know the extent of the supplies that they carry. The supplies opportunity will also grow due to dramatic increases in placements of color laser printers that use more supplies due to the added colors.

“The supplies factor will grow significantly since instead of using one monochrome toner cartridge, color laser printers use multiple colors and sometimes other supplies,” commented Cathy Martin, author of the new report. “As a result, supplies volumes are expected to escalate, representing a growth opportunity for wholesalers as well as manufacturers. Working together and coordinating programs with the wholesalers for color laser supplies would be beneficial.”

The report also indicates that distribution has evolved to include more than just moving products. It now includes additional logistics and management of the supply chain by the wholesalers. Technology is beginning to replace personal relationships as the primary reason for selecting one vendor over another. Easy access to comparative pricing, product information, and availability via the Internet are all attributes customers are now seeking in a vendor. 

Some other key trends examined in the report include:

• Customers’ self-sufficiency is driving fundamental change in wholesaler-distributors’ infrastructure
• Increased use of strategic sourcing will further empower customers and threaten wholesalers’ profit margins
• Use of fee-based services and pricing strategies will increase as wholesalers attempt to bolster profit margins
• Third-party logistics companies are challenging the domain of the wholesaler

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