**Chicago**: True Value is enhancing its supply chain post-acquisition by adding vendors Milwaukee and Diablo. Key leaders discuss the challenges faced and the importance of strong vendor relationships and customer loyalty in driving sales within the evolving hardware industry landscape.
True Value, a prominent player in the hardware distribution sector, is making significant strides in revitalising its operations following its acquisition by Do it Best. In an effort to enhance its supply chain and distribution functions, the company has recently added two well-recognised vendors, Milwaukee and Diablo, to its inventory. Hardware Retailing engaged with Justin Hanford, True Value’s vice president of merchandising, and Kristie Quaderer, the company’s senior category strategy manager for tools and hardware, to discuss the implications of these partnerships and the ongoing challenges in the industry’s landscape.
Since the acquisition was finalised in late November, True Value has prioritised the restoration of its fill rates and overall distribution capabilities. “We’re focusing on rebuilding vendor relationships, refining our supply chain processes, optimising inventory levels and improving communication with all of our internal teams, vendors and retailers,” Hanford stated. The company has invested in enhancing its forecasting tools and enabling data analytics to better align with anticipated demand. He described the renewed eagerness of vendors to partner with True Value, emphasising the company’s commitment to growth as a key factor in strengthening these relationships.
However, the post-acquisition period has not been without its challenges. Hanford noted that the supply chain was essentially halted prior to the acquisition, resulting in delays as vendors needed to establish new accounts separate from the legacy business of True Value. This restructuring created obstacles in efficiently shipping orders and led some vendors to pause their business engagements with True Value while reassessing their relationships. In response, True Value has pursued new partnerships and sought alternative sources to replenish inventory levels satisfactorily. Hanford remarked that with the increased volume of products entering their warehouses, the teams have intensified their efforts to ensure retailers can access the necessary stock.
In terms of collaboration with industry vendors, Hanford underscored the importance of transparent communication and setting clear expectations. Implementing these strategies has allowed True Value to reclaim trust and confidence among its suppliers, particularly with the backing of Do it Best’s financial strength and longstanding reputation. Many vendors have responded positively, expressing renewed confidence in True Value’s ability to foster sales opportunities.
From a merchandising perspective, Quaderer highlighted the significance of brand loyalty in driving consumer demand for power tools and accessories. “Having the right brands is key to building and maintaining loyalty between the store and their customers,” she explained. This indicates a need for retailers to effectively align their product assortments with the preferences of their customer bases across different sectors, including DIYers, professionals, construction, and agricultural markets.
Retail strategy surrounding power tools and accessories is expected to reflect adaptability to customer needs. Quaderer emphasised that understanding the interplay between tools and accessories is crucial for enhancing customer satisfaction and driving sales. She remarked that the way power tool accessories complement tools can significantly influence consumer loyalty, highlighting the importance of quality assortments.
As the industry continues to evolve, Quaderer pointed to notable trends, such as advancements in cutting technology and the efficiency of multi-material cutting options, particularly within oscillating tools. These trends signal a shift in focus towards performance and material-specific innovations, ensuring that products meet the diverse needs of end users.
The conversation provided insights not only into the immediate operational adjustments True Value is making in response to its acquisition but also laid out a vision for future partnerships and product strategies. The company’s leadership is focused on continuing to enhance customer service and engagement, particularly in the highly competitive markets it serves. With ongoing efforts to refine its inventory strategies and strengthen vendor relationships, True Value is positioning itself for sustained growth in the hardware distribution sector.
Source: Noah Wire Services
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