1. Overview for Parker EMEA
Inventory-Sharing Solution for Wholesaler-Distributors
Overview for Parker EMEA
Mark Tomalonis
WarehouseTWO, LLC CONFIDENTIAL

2. Agenda Principles of inventory-sharing Tour of WarehouseTWO tools Q&A

3. Principles of Inventory-Sharing
Tour of WarehouseTWO tools
Q&A 

4. Principles of Inventory-Sharing
Inventory-Sharing defined:
Formal collaboration by a manufacturer and its network of wholesaler-distributors
Virtual aggregation of available inventories
Critical customer needs are fulfilled quickly, by leveraging inventory in the network.
Win, win, win 

5. Principles of Inventory-Sharing
Inventory-sharing is your distributors’
Unfair Advantage! 

6. Principles of Inventory-Sharing
Inventory-sharing helps your distributors mitigate these common business challenges:
Lack of product availability (long lead times)
Minimum PO quantity/value requirements
Expedite / quick delivery premiums
Quantity discount policies
Surplus inventory* 

7. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU) 

8. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU)
“A” & “B” items
lots of transactions
distributors often stock
Parker may stock in EMEA
everyone makes money selling these items
high service level is easy
not likely to be “shared” 

9. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU)
“C” items
infrequent transactions
distributors might stock
lead times from Parker may be long
high service level is hard
good “inventory-sharing” candidates 

10. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU)
“D” items
very rare transactions
no one wants to stock
high service level is very hard
may be money-losing sales
excellent “inventory-sharing” candidates

11. Principles of Inventory-Sharing
Distribution of sales by unique item (SKU)
“D” items
customers judge the supply chain on the availability of these items
“inventory-sharing” has its greatest value on these items
low sales; high transaction costs and lots of headaches 

12. Principles of Inventory-Sharing
Do end-customers judge Parker on the majority of the time when you or your distributors perform to their satisfaction? OR
Do end-customers judge Parker on those rare events when you or your distributors let them down?
Inventory-sharing helps prevent those events that hurt your reputation 

13. Principles of Inventory-Sharing
One distributor’s inventory

14. Principles of Inventory-Sharing
One distributor’s inventory w/ inventory-sharing…
…with no additional capital investment or risk!
Serve customers from vast inventories! 

15. Principles of Inventory-Sharing
How inventory-sharing helps Parker EMEA:
Increased overall sales
Improved brand reputation
Increased “operational efficiency”
“Buy back VS make” 

16. Principles of Inventory-Sharing
What you said was important to you: 

17. Principles of Inventory-Sharing
Tour of WarehouseTWO tools
Q&A 

18. About WarehouseTWO Principles of inventory-sharing
Tour of WarehouseTWO tools
Q&A 

19. About WarehouseTWO
WarehouseTWO is the easiest to use, most cost-effective inventory-sharing solution available to wholesaler-distributors today. 

20. About WarehouseTWO “SaaS” (in “the cloud” solution) Simple for all
Sophisticated for those who want it
Restricted access 

21. About WarehouseTWO Restricted access (no end-customers)
manufacturers and wholesaler-distributors only 

22. About WarehouseTWO Restricted access (by product line)
“Inventory-Sharing Communities”
distributors can see only products for which they are an authorized wholesaler-distributor 

23. About WarehouseTWO A complete TURN-KEY solution
Customer/technical support
Training
Server hosting & website development
Communications (reports, tips, best practices) 

24. About WarehouseTWO Fast facts Created for Parker Hannifin USA, 2005
350 Parker distributors participate in NA
49 Parker-branded communities
340,000 inventory data records posted 

25. About WarehouseTWO
 Distributors upload their inventory data to the WarehouseTWO web site
 Distributors browse aggregated data at our web site
When a distributor finds what he needs, he contacts the posting distributor
No transactions take place at WarehouseTWO
No transaction records
No transaction fees        

26. About WarehouseTWO Site tour... SEARCH and MULTI-SEARCH
BROADCAST REQUEST
POST INVENTORY
METRICS
EXPORT DATA / MEMBERS
RELATED ITEMS 

27. About WarehouseTWO Principles of inventory-sharing
Tour of WarehouseTWO tools
Q&A 

28. Q&A
Principles of inventory-sharing
Tour of WarehouseTWO tools
Q&A 

29. Q&A 

30. Next Steps 

32. Mark Tomalonis mark@warehousetwo.com www.warehousetwo.com
Thank You!
Mark Tomalonis

33. Principles of Inventory-Sharing
Product attributes conducive to successful inventory-sharing:
Durable goods (non-perishables)
Branded products (not commodities)
Manufacturer-defined part numbers
Can ship via UPS, FedEx or on a pallet
Sold through regional stocking wholesaler-distributors 

34. deployment challenges

35. deployment challenges
Typical distributor interest levels in anything:
Bottom
20%
“conspiracy
theorists”
Top
20%
“enthusiasts”
Middle
60%
“on the fence”
(“Convince me”) 

36. deployment challenges
“Wait and See”
“Constant Gardener”
“Evangelist” 

37. deployment challenges
Keys to Success:
1 “CRITICAL MASS”
Many participating distributors
2 LOTS OF INVENTORY
>60% members uploading
3 MANUFACTURER PARTICIPATION
4 CHANGE IN CSRs’ BEHAVIOR
Non-stock backorders 
WarehouseTWO, LLC CONFIDENTIAL

38. deployment challenges
Principles of inventory-sharing
Tour of WarehouseTWO tools
Inventory-sharing deployment challenges
Tips for successful deployment 

39. Tips Principles of inventory-sharing Tour of WarehouseTWO tools
Inventory-sharing deployment challenges
Tips for successful deployment 

40. Tips Understand your audience. ____%
Purchase items to fulfill my end-customers’ backorders.
Prevent over-buys of backordered non-stock items.
Replenish my active inventory at lower-than-distributor-costs.
Gain additional revenue by selling to other distributors.
Turn surplus inventory into cash.
100 %
No interest
Lots of interest 1 2 3 4 5 6 7 8 9 10 

41. Tips Essential steps for successful deployment: Initial announcement
Distributor visits by regional managers
Show this video:
Live demonstration of WarehouseTWO
Help them register an account (level 2)
Monthly reminders, for at least 1 year
Training at distributor conferences
Change of behavior by your staffs
Teach your customer service and regional sales managers to redirect your distributors:
“Have you searched for this item at WarehouseTWO?”
“Have you sent out a BROADCAST REQUEST to the other Parker distributors at WarehouseTWO?” 

42. Tips “Carrots” and “Sticks” Carrots Sticks
Reimburse subscription fees for 6-12 months
More favorable inventory exchange policy for active participants (buying and selling)
Include “participation in inventory-sharing” in distributor metrics
Sticks
Increase expedite fees
Reduce discounts on rush orders 

43. Tips Principles of inventory-sharing Tour of WarehouseTWO tools
Inventory-sharing deployment challenges
Tips for successful deployment 

44. Agenda Principles of inventory-sharing Tour of WarehouseTWO tools
Inventory-sharing deployment challenges
Tips for successful deployment 

45. Pre-Q&A Summary
WarehouseTWO is the easiest to use, most cost-effective inventory-sharing solution available to wholesaler-distributors today. 

46. Agenda Principles of inventory-sharing Tour of WarehouseTWO tools
Inventory-sharing deployment challenges
Tips for successfully achieving “critical mass” participation 

47. Inventory-Sharing Solution for Wholesaler-Distributors
WarehouseTWO, LLC CONFIDENTIAL