CHATSWORTH, Calif. - Leading novelty manufacturer, Topco Sales, is spearheading an initiative to streamline efficiency and reduce costs: As of July 1, 2008, they are no longer breaking cases. Only orders of full case counts will be accepted by the company, with the intent to see a positive ripple effect from manufacturer to end consumer.
"Topco Sales will strictly enforce our policy of only selling case counts. We operate in volume, and therefore it is up to our distributors to break cases to sell to the retail level. This is ultimately the portion of the supply chain that distributors do best-they break cases, stock their shelves with smaller quantities, and ship to retailers on a smaller scale. Topco Sales is committed to supporting the distributors so they can better handle their portion of the supply chain," said Gabriel Scally, the company's chief financial officer.
The initiative is intended to stave off price increases due to rising manufacturing and gas costs and indications that the country is in a recession. With the initiative, Topco executives predict that they will be able to weather an inflation driven economy, buffer prices for the distributors, handle inventory and costs better, and ship faster. Thus, distributors should not have to pass on price increases to the retailer, and the retailer to the consumer.
"Ultimately what we are doing is streamlining the supply chain and making it more efficient. Our full-line distributors are our partners in this initiative, and as we support them with better service and reasonable prices, they will be better able to support their customers: the retailers," explained CEO Scott Tucker.
Retailers who do not order full case counts are to be directed to full-line distributors. In this new model, the full line of Topco products will still be available to retailers, said Scally.
"The solution is easy economics," he said. "Topco Sales services several full-line distributors who can sell to companies that cannot order full cases. With the full-line distributors there to step-up-to-the-plate, Topco Sales' products will be available to retailers just as they always have been. Plus it is now more important than ever before for distributors to become full-line. Full-line distributors are going to see an increase in sales as more retailers and chains come to them for the entire Topco Sales line of products."
Full-line distributors include East Coast News, Honey's Place, Nalpac, New Beginnings, Universal, and Williams Trading.
For more information, please visit TopcoSales.us. If you are distributor interested in becoming full-line, contact your Topco Sales account executive for more information.
