Posted On: 09/23/2016 9:54:18 PM
Post# of 15187
I can't see Walmart going for such a disjointed distribution strategy. A big customer like Walmart should just deal with HQ and have HQ serve the account and let the dealer get their respective commission of the sale.But for Walmart to have to deal with each and every dealer, in each and every state/market is not going to work.
The product should go from the HJOE's co-packer to Walmart distribution enters. Not from co-packer to each dealer and then each dealer to Walmart distribution. With all the new dealers, that creates a logistics nightmare for Walmart. Plus, there are not HJOE's in every market. Let Walmart distribution handle all of that.
Another thing, how many dealers can financially handle big orders if Walmart has them?
The big issue is supply chain. HJOE doesn't have the widespread supply chain to serve Walmart if they go the HJOE to dealer to Walmart route. If Walmart gets product directly from the HJOE co-packer, then they should be able to get that started now or much sooner.
The product should go from the HJOE's co-packer to Walmart distribution enters. Not from co-packer to each dealer and then each dealer to Walmart distribution. With all the new dealers, that creates a logistics nightmare for Walmart. Plus, there are not HJOE's in every market. Let Walmart distribution handle all of that.
Another thing, how many dealers can financially handle big orders if Walmart has them?
The big issue is supply chain. HJOE doesn't have the widespread supply chain to serve Walmart if they go the HJOE to dealer to Walmart route. If Walmart gets product directly from the HJOE co-packer, then they should be able to get that started now or much sooner.
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