While Crain’s products are what we are most known for by end-user
customers, Crain’s reseller customers, primarily dealers and distributors,
often consider Crain’s world class distribution to be Crain’s
leading attribute. And when one considers the logistical challenges faced
by Crain, it might seem even more amazing that Crain’s marketplace
distribution channels and process would be a chief strength. By applying
our skills in innovation and process, along with our strong commitment
for customer service, we are able to provide our dealer customers with
real time-based competitive and cost advantages. And we do so on a dependable
and ongoing basis. 
Our resellers are very aware of Crain’s distribution and supply
chain dependability; delivering superior products immediately on demand,
configured and customized as needed, and at the right overall price. Utilizing
Crain as a supply source provides more that mere convenience, as it permits
our dealers and distributors to remain focused on their most important
business activities; the promotion and fulfillment of sales to their end-customers.
In fact, we have found that our fastest growing and most successful dealers
and distributors happen to also be the most adamant that their marketplace
reputations be supported, and that they not be distracted by worrying
or wasting time in supply chain management issues. Our dealer/distributor
customers have clearly told us what their real supply chain needs are,
and we at Crain have answered these needs with a highly effective fulfillment
and distribution process. We can be counted on to meet our reseller customer’s
real marketplace opportunities and objectives and provide our resellers
with a real competitive edge.
We believe that Crain’s strong acceptance and the loyalty of our
reseller customers is the result of a combination of several unique and
valuable attributes. First of all, many of Crain’s products are
considered by many resellers to be “must-carry” items. Crain’s
products are famous for their performance, and acceptable equivalents
are often simply not available. Our product excellence is found in functional
performance, such as in the delivery of accuracy and precision which is
so important in measuring and surveying activities. Our products are also
known for their ability to endure the harsh field conditions typical in
surveying and construction environments. Our reseller’s reputations
are defined by the quality of products they offer, and Crain products
deliver a leading product image.
Another important aspect of Crain’s supply chain and distribution
system is consistent, on-demand and immediate fulfillment of orders. In
the area of dependable on-time delivery, Crain’s performance is
world class, with 98% of all of our orders shipped within 24 hours of
placement or release. And this amazing fulfillment record also includes
all of the products which are customized in some way prior to shipment
– more that 1/3 of all products we ship. For our reseller customers,
our dependable on-time shipping is important in several ways, and overcomes
issues our resellers are all to familiar with. For one, shorts and out
of stock items can be avoided, so our reseller customer can fill sales
to end-users immediately, which is when users expect it -- always now,
not later. Large, expensive and inflexible reseller inventories, traditionally
required to hedge against supply chain lead-time inconsistencies, can
also be avoided, as we provide rapid and dependable delivery. Also, the
need to plan and make accurate, long-range forecasts, as well as the need
to place large and long lead-time orders is also eliminated. Last, but
certainly not least, the need to track orders and expedite shipments is
also virtually eliminated with Crain’s efficient and dependable
distribution fulfillment practices.
Private Labeling or Co-Branding of Crain’s products is one of our
most popular and advantageous service offerings. Over 1/3 of all products
shipped by Crain are imprinted with a reseller’s name and logo.
Private Labeling of our products provides our resellers with a particularly
effective means of advertising, as market awareness is reinforced every
time a product they sell is used in the field, and this advertising continues
over the entire life of the product. And what’s best is that Crain
doesn’t normally charge for Private Labeling.
Additionally, our Private Labeling service is available on almost all
of our products, with reseller’s logos sized to fit and maximize
available area on each and every imprinted product. Crain also offers
full service graphics assistance. which enables quick and efficient creation
of reseller’s imprinted images for our Private Labeling service.
Furthermore, our Private Labeling program does not delay shipments, as
it is a service that is completely included in our 24 hour shipment commitment.
Many producers are indeed able to “rush ship” an order, or
provide private labeling to their reseller customers, however, these “rush
shipments” typically are the rare exception, and the result of an
occasional special favor. Given that special handling of rush shipments
are disruptive and expensive to most producers, they are typically discouraged.
If customizations are required, such as private labeling, even special
favor, rush shipments aren’t going to happen. Furthermore, these
special handle “rush shipments” become even more rare and
more difficult during periods of peak demand, a time period which, of
course, typically coincides with periods of peak supply needs for resellers.
In fact, most producers in our industry provide their least dependable
and least responsive fulfillment service during periods of the greatest
reseller sales demands and needs. The distribution fulfillment difference
for Crain is actually huge, as for us “rush shipment” is our
routine, everyday, normal way of operating, and most importantly, our
reseller customers know they can depend on it. For Crain, immediate delivery
isn’t disruptive, nor does it add costs, rather it is a proven ongoing
benefit for our reseller customers, which uniquely distinguishes us from
the rest.
Some well known companies such as Dell, Wal-Mart, FedEx and Toyota, have
developed significant competitive advantages by advancing innovative,
time-based distribution and logistical processes. While differing in method,
each of these companies has exceeded customer expectations, and at the
same time provided significant total cost efficiencies for their customers
as well as themselves. Crain believes that customer service and economic
efficiency are timeless values, and may explain the long-term marketplace
growth and success that each of these companies have sustained.
Crain is a much smaller company than these other examples, and our specific
distribution system emphasizes different advantages, yet in the same spirit
of these examples, we at Crain have applied innovation and process to
provide a distinct and valuable time-based logistical operating advantage
for our customers. We believe that the attainment of our high levels of
customer satisfaction are the direct result of our world-class methods.
In
our overall markets, Crain is a comparatively small player, yet our distribution
channels are not only strong, but also quite large and extensive. Most of
our sales are made directly to our base of over 500 dealers and distributors,
who are retail resellers of measuring tools and surveying equipment and
instrumentation. Our reseller customers are dispersed out across the nation
and the globe and many have multiple locations. Differing from most manufacturers,
Crain’s customer base is very diversified, with even our largest customers
accounting for only a small percentage of Crain’s overall sales.
The distribution example companies previously mentioned are large and
dominant in their overall markets, however Crain is different in that
our products tend to occupy a small niche segment of our reseller customer’s
overall sales. The fact that Crain products may be offered in so many
dealerships may be quite a tribute to us, but it makes doorstep visits
difficult. The widespread geographic presence of our customers also illustrates
our logistical distribution channel challenges, and the extent of innovation
and expertise required for us to provide our world-class service. We at
Crain have worked hard to develop expertise and leadership in our marketplace
distribution presence, and we intend to continue to improve, as well as
expand the products and services offered in the future.