Wrenchead's distribution model is regional, linking New York shoppers with East Coast vendors to insure timely delivery. But the system is also designed to reward vendors who do an outstanding job for the company. In fact, keeping vendors happy is a crucial job for Conrades. Instead of forcing them to compete with one another on price inside the Wrenchead enterprise, Conrades hopes he can help the best among them build consumer loyalty. We distribute our business to vendors who have performance criteria that they have to meet and those who we have the best relationship with get the business.
Customer satisfaction determines how much business they get.
Conrades said he never considered doing a best price model where a shopper searching for a replacement brake pad would take the best bid offered by a merchant. Instead he said he prefers fine tuning his business according to a distribution plan that is basically molded by a customer shake out of poorly performing vendors. Nor are vendors guaranteed business, Conrades said. Copyright 2001 INT Media Group, Incorporated All Rights Reserved.