Midwest Chain

  • Project Overview

    • Client:Midwest Chain

    • Project Category:Primary Distributor Contract Evaluation


    A Midwest operator contacted b2b Solutions to assist in the evaluation of their current wholesaler’s renewal proposal. Because of their concern the process would distract the Director of Marketing from their other duties the company engaged two members of our team of c-store consultants.

    Actions by Our C-Store Consultants Included

    • Discussed with retailer what they like and don't like about their current distributor.

    • Based on that discussion we recommended including four alternative distributors.

    • Worked with the retailer to determine their key decision factors for the selection of a primary distributor.

    • One of these was the ability of a distributor to provide the items necessary for their proprietary food program.

    • Discussed with the retailer their desire to be presented with a three-year contract proposal.

    • Secured agreement on the elements to be included in the competitive set matrix questionnaire.

    • Held an initial conversation with each of the five potential primary distributors selected by the retailer.

    • Provided the distributors our primary distributor questionnaire and the retailer's trailing 12 months purchases minus any pricing information.

    • Supplied participants information regarding the retailer's locations and delivery frequency.

    • Requested initial proposals to include proposed pricing and their completion of our questionnaire. This specially included their ability to support the retailer's foodservice program.

    • b2b Solutions c-store consultants analyzed the initial proposals and respondents' market baskets. This included developing a common market basket (excluding the foodservice items) for all five participants with exact SKU matching.

    • Verified the participants' responses to our competitive set matrix.

    • Determined if a lower cost was achievable with any of the participants.

    • Arranged off-site meetings with selected distributors to evaluate their proposed foodservice items.

    • Arranged on-site meetings with the distributor and retailer.

    Deliverables Included

    • Provided updates throughout the RFP/Distributor Evaluation process.

    • Presented a competive set matrix based on our questionnaire containing the replies of both distributors.

    • Developed a summary of annualized cost for the market basket in the agreed upon categories of cigarettes, OTP, and all other goods based on a three-year contract.

    • Verified and documented both hard cost differences, any signing bonus, ongoing rebates, and potential soft savings for each of the participating distributors (excluding selected foodservice items) and provided it to the retailer.

    • Invited selected distributors to a face to face meeting with the retailer.

    • Notified the distributors of the retailer's decision.

    b2b Solutions also offers evaluation services for distributors and suppliers.

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