1. Precision Market Insights

2. Today’s Content (45 mins)
1. Precision Background
2. Market Data
3. Historical Trends
4. Insights & Opportunities
5. Panel Discussion
Break
Questions: Please hold, to be covered during panel discussion

3. Precision Background Private quantitative marketing agency
Big Data sales and marketing tools focused on growth, margin improvement, and operations efficiency
Partner Mix: 50% Mfts. & 50% Distributors/Wholesalers
Long-term partnerships built on trust and confidentiality
Vision: Transform data into understanding, action & payback
Sample partners

4. Precision Background 17 Years of Product & Services Development
Statistics, insights, and experience
B2B/Professional & Sales and Marketing focus
3rd Party Firewall & Partnerships
Data aggregation, compilation, & validation
All products – sku and customer attributes
Implementation
Measured by $ payback to partners
Revenue growth, profit improvement, operations efficiencies

5. Market Data

6. Market Data % wholesale by product category
% wholesale by distributor type (channel)
% wholesale for A&B and C&D items
Historical trends
Forecast: Insights to Consider

7. Scope B2B/Professional Sales in the US
Distributor COGS (Manufacturer $’s)

8. Scope Product Categories: Cleaners & degreasers Floor care chemicals
Disinfectants
Laundry
Folded paper towels
Cleaning tools/accessories
Odor control
Mops
Carts
Brooms & brushes
Floor pads
Mopping equipment
Ice melt
Foodservice (FS) disposables
Power equipment
Foodservice packaging
Gloves
Bags & sacks
Wipers
Paper bath tissue
Can liners
Rolled paper towels
Warewash chemicals
Hand soaps & sanitizers
Paper napkins
PPE

9. Market Size
$40.4 Billion
B2B, 12 months ending 5/2018, Manufacturer $’s mm, USA

10. Market Size by Category
$40.4 Billion

11. % Wholesale
$40.4 Billion
$5.3 B Wholesale
13%
87%
$35.1 B

12. % Wholesale by Category
Avg =
13%
More Categories on next slide

13. % Wholesale by Category
30%
31%
Avg = 13%
B2B, 12 months ending 5/2018, Manufacturer $’s mm, USA

14. A/B & C/D: % Wholesale
Avg = 13%
$32.4B
$8.1B
Market
Size ($B)

15. A/B & C/D Items C/D: $1.7B $5.3 B A/B: $3.6B via Wholesale
Total Market
$40.4 B

16. Market by Distributor Type
$40.4 Billion

17. % Wholesale by Distributor Type
Avg =
13%
Wholesale
Market
Size ($mm)
$2,000
910
450
113
110

18. Historical Trends Growth (2013-2018)

19. Insights Collaboration and Partnership with Suppliers Drives Growth
Growth in wholesale all comes down to level of collaboration with suppliers
Level of trust, partnership, and data sharing
Individual supplier strategies change frequently
Respect Roles
Wholesale role = small customers & brand loyalty
Supplier role = pricing, order minimums, and customer size cut-off discipline

20. Insights Wholesaler Success Factors Service quality
Innovation (for example: eComm platform and fulfillment role)
Ability to improve customer retention and penetration
Wholesale does not justify itself on cost-savings alone
Effectively communicate benefits of wholesale to distributors and suppliers

21. Insights Other Role of eCommerce Mergers & Acquisitions
Supplier Mindset
Leadership with consumer backgrounds
Finance can perceive wholesale as a drain on margin
Knowledge and support of wholesale requires experience

22. Opportunities For Distributors For Suppliers Lower cost-to-serve
Lower inventory
Higher order fulfillment
Higher revenue
Increased customer retention
For Suppliers
Small customer retention
Increased sales via more product availability
Reduced cost-to-serve for small locations

23. Opportunities $2B Opportunity Market % Wholesale Influencing Factors:
Wholesale role = small customers & brand loyalty
Supplier role = pricing, order minimums, and customer size cut-off discipline

24. Thank you!