When a customer of distributor Pennco Container (Dallas, TX) put an order in for dispensing closures, Pennco called its supplier Weatherchem (Twinsburg, OH) on the spot. Since Pennco orders small quantities, Weatherchem suggested buying through its online demand aggregation solution w4das, developed by e-commerce application provider eWinWin (Cleveland, OH). According to Pennco’s sales representative Jason Haun, Pennco was now able to meet the minimum of 8ꯠ pieces and get a bulk price. “We weren’t ordering all that many caps, so we were able to go into the DealRoom™ and buy as a group,” says Haun. “Along with many other companies ordering small quantities, we were able to achieve some buying power.” The DealRoom displays the closing date, shipping date, and the price depending on the quantity sold. For example, if 1ꯠ to 1꿇 pieces were ordered, the price /1ꯠ items could be $100; for 2ꯠ to 4꿇 pieces, the price could decrease to $69/1ꯠ items; for 5ꯠ to 10꿇 pieces, to $55/1ꯠ items; for 11ꯠ to 19꿇 pieces, to $49/1ꯠ items; and for 20ꯠ to 70ꯠ pieces, to $44/1ꯠ items. The eWinWin business model offers real and measurable results without having to bid. Pennco used a credit card to purchase 10ꯠ white pour caps at a 20% reduced price. “I was very surprised at the savings doing it this way,” says Haun. “If we had bought 10ꯠ caps from Weatherchem directly, we would have paid a much higher price. Doing it through the demand aggregation w4das system, we were able to buy as if we were buying 1/2 million and getting that price.” Pennco orders from Weatherchem twice a year. “We have one or two companies that buy the pour cap, and when they call us I plan to use w4das again,” says Haun. His only wish is to find savings with other packaging suppliers from which he orders in small quantities, such as bottles, through the online demand aggregation solution from eWinWin.
See the story that goes with this sidebar: Small orders + small orders = big savings
