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While these changes are driven by legitimate service needs on the part of the wholesaler, they can
drive the supplier’s costs back up to levels approaching the cost to serve small-order customers.
Wholesalers should recognize this fact, and when appropriate, allow manufacturers to reduce the
redistribution allowance to reflect the added cost.

A WORD ABOUT “FEAR”

Many of the barriers that hold back progress in the Jan-San supply chain are driven by fear on the parts
of participants. Effective wholesaling programs require a new level of information sharing and especially
trust among manufacturers, wholesalers, and distributors. In many cases, this represents significant
change from the old ways of doing business, as well as changes in the personal relationships among
buyers and sellers. To the extent that this trust is not given (or worse, is not earned), the industry will be
plagued with too many small, high-cost transactions and shipments.

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