Transitioning from Direct Business to Distribution

At PolySource, we pride ourselves on the technical problem solving abilities of our consultants in the field. We consistently aim to provide the best solutions for our customers, which is why our field experts are trained at every level of plastic program development. To showcase this expertise, we’ve provided a number of case studies that emphasize the PolySource advantage. We’re not just your average plastic resin distribution company, we are your partner in delivering technical solutions that your business benefits from.

Customer
Medium Sized Injection Molder

Before PolySource

Customer was purchasing material directly

However…

  • When customer buys direct, they have to order at 4 week lead times
  • Customer has to inventory material for up to 4 months
  • Customer carrying $100,000 in negative cash flow

Bottom Line

Customer needed a solution!

PolySource Solution

PolySource Recommends Warehousing

Features

  • PolySource will stock and inventory material

Advantages of Warehousing

  • Customer takes weekly deliveries, eliminating inventory expenses
  • More floor space allows for additional capital equipment
  • Cash flow improves, benefiting accounts payable with dollars previously frozen in inventory
  • PolySource takes ownership of inventory, and purchasing manager now able to focus on more important aspects of the business

Total Cost Savings

  • Improved cash flow +$100,000
  • Additional warehouse space +20,000 sq. feet
PolySource Improved Cash Flow Position and Warehouse Space!