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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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Last modified: October 25, 2000