While ecommerce has proven a huge success among consumers and entrepreneurs, the industrial distribution landscape has proven an especially tough market to transition. Changing the buying habits of industry and businesses with established purchasing procedures, and purchasers with ingrained habits, still proves a challenge. Even today, only 21% of the $1.9 trillion in industrial distribution sales occur online, according to a 2015 Morningstar report.
Midland Metal, an industrial supplier of stainless steel and brass fittings and valves, recently pushed its customers online orders to over 50% of its total order volume, one year after launching a revamped ecommerce website and employing a combination of customer incentives and conveniences. Through their Account Manager platform, Midland has given their customers complete access to direct ordering, order history, complete net pricing, and inventory stock. “Our first step in launching online ordering was to create a platform that the customer could use to control every aspect of their relationship with us as their supplier,” stated Midland Metal’s Chief Technology Officer, Charlie Tischner.
Midland first launched online ordering in 2003, immediately offering a 5% discount on all online orders – a discount they continue to offer today. “The discount gives our customers an incentive to get on the site,” said Brett Powell, Midland Metal’s National Sales Manager. “The convenience Account Manager provides is the real sticky factor. The ability to check stock, review pricing, customize part numbers, print bin labels, track shipments, and expedite orders has really changed the way our customers do business with us. They spend very little time on the phone looking for answers because most of the information they need is provided online.” Midland Metal’s president, Vince Hodes adds, “…the real value of Account Manager to us and our customers is the smoothness of the transaction. Because they can check our inventory stock in real time, we have higher fill rates. We know they are getting the part and quantity they want because they’re entering it into our system.”
Midland Metal is based in Kansas City, Missouri, with stocking locations in California, Georgia and Texas.