Central Distribution is just one of the growth drivers at UPA
By Mary Jo Martin
Editorial director
Founded 32 years ago, United Purchasing Affiliates was the brainchild of William Corp, a PHCP/PVF industry veteran with a background in purchasing. This buying and marketing group — now led by the founder’s sons Doug Corp as CEO and Bill Corp Jr. as CFO — is comprised of 356 plumbing, PVF and HVAC wholesale locations throughout the U.S. They have built a national network supported by a very impressive central distribution center at its Orlando headquarters, along with six satellite warehouses throughout the U.S.
This effort to streamline logistics and inventory management for UPA’s members has proven valuable, especially during the past few years when lean business conditions led many to reduce inventory levels. The Central Distribution program — which encompasses Plumbing, HVAC, PVF and Electrical — continues to expand as more manufacturers are taking part. Among the products that can be found in UPA’s warehouses are tankless water heaters, faucets, plumbing fixtures, garbage disposers, bathroom fans and lighting fixtures. UPA takes pride in developing a cadre of high-quality vendors, which are regularly reviewed to ensure their cost-effectiveness and continued relevance to UPA affiliates.
Among UPA’s additional strengths are its high levels of service throughout the organization, a team of inside service specialists as well as intensive marketing program. UPA president and seasoned PVF veteran Roy Jacobs heads the sales and marketing efforts, which has cemented the bond between headquarters and members.
Another benefit of UPA membership are the group meetings held periodically throughout the year. UPA believes this is just one more vehicle by which to open communication channels between members, vendors and the group’s leadership. The Corps believe that the exchange of ideas between non-competing members and the development of stronger relationships have strengthened UPA as an organization, as well as its members and vendors individually.
CEO Doug Corp recently shared some further insight into UPA with editorial director Mary Jo Martin.
MJM: Can you pinpoint a key to what has made UPA successful from your inception to now?
Corp: In April of this year, UPA will be 32 years old. Our success can be traced back to our inception when Bill Corp Sr. started UPA after serving 17 years as corporate director of purchasing for ITT Grinnell. Prior to that he worked as a purchasing agent for the air conditioning division of American Standard in Columbus, Ohio. Plumbing, PVF and HVAC has been, and will continue to be, an important part of the Corp family. From the beginning, experience within our industry has played an important part of our success. Bill Jr. and I have been involved with UPA for 30 and 31 years, respectively.
MJM: How has that experience translated into success in recent years?
Corp: Bill and I have extensive experience directly involved in our industry. We started and successfully ran a plumbing/municipal supply business that was subsequently acquired by a national chain. I have been dealing with Plumbing, PVF and HVAC distributors since I got out of college and went to work as a sales representative for Capitol Manufacturing and Camco Fittings Company. Subsequent management positions with EG&G Sealol and Raytheon honed my appreciation for both the manufacturing and distribution market sectors.
Combining our industry experience with my brother’s extensive financial background in asset-based lending created a foundation for our growth within the industry. Bill worked with many small businesses in New England assisting them with lines of credit, inventory management, property acquisition and overall business planning.
The addition of Roy Jacobs to the UPA team in 2002 has been a major asset for our organization with his extensive experience in the distribution and manufacturing sectors within our industry. In the mid 70s Roy ran an Industrial PVF supply company in the Pittsburgh marketplace. He also was a partner in a valve automation center that worked exclusively with wholesale distributors. Subsequent to these positions Roy held an executive position with a major valve manufacturer.
MJM: How have your previous experiences allowed you to understand the needs of your member distributors?
Corp: We at UPA understand that rebate programs are a very important aspect of the bottom line. But beyond rebates, we understand that there are many other factors in running a successful business.
Cost of possession is critical to cash flow and the bottom line. This is why we created the UPA Central Distribution Center. We have invested in our members’ success by utilizing our group volume and warehouse facilities.
Product and product application training is also paramount to the success of the company and the individuals in the supply chain. And of course, relationships play a key role in a company’s success.
MJM: How is the Central Distribution Center working for you?
Corp: We have studied buying groups in multiple industries. One thing that buying groups in other industries have in common is that they actually buy something from their vendors and provide product to their members from a Central Distribution Center. Bill Jr. and I started the UPA DC about 10 years ago and roughly 50% of our 300+ members now buy from it.
Our members are able to buy brand name products with no minimums at a very reasonable price. On certain key product categories our members can place fill-in orders and not have to buy their stock orders earlier than anticipated. This helps improve cash flow and reduce inventory investment in these difficult economic times.
This aspect of our business also supports UPA vendors. We don’t just focus on rebates. We develop business models and plans for both members and vendors. The participation level with our DC has grown every year. It is our plan to substantially increase product offerings and strategic locations for 2011 and beyond. This has been a tremendous success!
MJM: Have you designed other programs to help your distributors in these hard economic times?
Corp: Yes. In concert with some of our major manufacturers we have developed, and are continuing to develop, a private label program for the benefit of UPA members. This allows our members to stay competitive with the private label programs of some of the giants within our industry.
In fact, UPA has even developed — and is manufacturing — our own patent pending flanged end ball valve series with a ductile iron, Teflon fused ball (www.qcvalve.com). The C8000 — now offered in 2” through 6”, and will be expanded to 10” this year — has become an instant success and is the direct result of the significant experience that Roy Jacobs has in the valve industry. It is available to UPA members exclusively through the UPA warehouse. Our commitment to the industry as a whole is steadfast and will endure far into the future.
MJM: It sounds like UPA is very committed to the future of your members.
Corp: UPA is committed to the future success of both UPA vendors and members. For our vendors, we strive to increase their marketshare within our group in a significant way. A great testament to our success is that many of our vendors have been with us since our inception almost 32 years ago. A key component in our growth has been the very strong relationships we’ve built with the key executives of our industry’s strongest vendors.
For our members, we continue to develop more and more ways to improve their bottom line — not only in rebate programs but also in their day-to-day operations. Long-term, strong relationships with our members have also been a key component in our growth and will continue to be in the decades ahead.
We coordinate efforts with our member and vendor partners in targeted market areas to effectively create, launch and execute business plans to increase market share for all involved with UPA.
For additional information, visit www.upaonline.com