Q.
How is CDN different from the dot coms?
A.
We have customers, profitability and infrastructure.
CDN is not positioning for an IPO.
It’s sole purpose is to provide independent chemical
distributors with the tools and resources to compete profitably in a
changing market.
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Q.
What is the benefit for an independent distributor to belong to
CDN?
A. CDN offers independent distributors the ability to pool
resources to jointly develop e-commerce and other technical solutions;
take advantage of volume buying in supplies, equipment and services;
share best practices; service larger accounts in conjunction with other
distributors.
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Q. How can manufacturers benefit from a working relationship
with CDN?
A. The members of CDN are experienced, responsible distributors
with a commitment to customer service and a successful history with
their suppliers. Suppliers
will benefit through the value-added services provided by CDN to its
members to end use customers. Also,
CDN will help to reduce redundant cost in the channel, through formal
marketing plans geared to growth and sharing in the accumulated
knowledge of markets and customers provided by the CDN alliance.
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Q. Does a supplier have to make their product line available to
all CDN members?
A. No. It will not
be required that a supplier sells to all CDN members.
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Q.
How do I know that existing distributor contracts will not be
negatively impacted if I develop a relationship with CDN?
A.
It is not in CDN's best interests to injure the existing relationships
among suppliers and their distributors, whether they are members of
CDN or not. We hope to work in a positive manner with our
suppliers to develop business that makes sense for all parties
involved. We will make best faith effort to honor fully those
geographic and contractual boundaries that have previously been agreed
to and we will carefully address situations that may challenge those
boundaries individually with affected suppliers.
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Q. How will my relationship with CDN member distributors change?
A. The
whole concept pf CDN is to enhance your relationship with
distributors, not detract from the present relationship. CDN's
role is to develop and facilitate a more efficient and effective
partner relationship.
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Q. What financial commitments is CDN looking for from suppliers?
A.
CDN is interested in sharing cost savings to the channel
generated through CDN systems on an ongoing basis.
In addition, we are requesting up front capital contributions to
more quickly develop and implement cost saving processes and procedures.
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Q.
What
technical commitments is CDN expecting from suppliers?
A. CDN will work with suppliers to integrate information into
the supplier ERP system and provide data in an acceptable electronic
format.
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Q.
What geographic areas does CDN cover now and what are does it plan
to cover in the future?
A.
Current CDN members cover the US primarily east of the
Mississippi River. Members
will be added to cover the western half of the US within the next 3
months. Future plans call
for building international alliances to offer CDN services
internationally.
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Q.
How will distributor transactions to and from
supplier’s change?
A. CDN’s intent is to streamline the transactions and reduce
cost associated with paper invoices, PO’s and payments.
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Q.
How will CDN connect to individual supplier’s electronic
software programs?
A. CDN will be developing various interfaces for supplier and
member distributor ERP systems.
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Q.
How have customers responded to CDN’s potential use of
e-commerce to transact business?
A. The initial response has been open-minded.
Customers are concerned that the clerical aspects of order entry
now performed by distributors not be pushed down the channel with its
resultant costs.
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Q.
How much of CDN members business is expected to
be conducted via the web?
A. In a three to four year timeframe, CDN expects to
process 30-40% of its customer transactions over the Internet.
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Q.
Who should suppliers contact with further questions?
A.
The CDN staff. Particularly
Rhonda Harvey who can get manufacturers in touch with appropriate team
sponsors and leaders as necessary.
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