Distribution consolidating products
With cross-docking the costly inventory function of a distribution center becomes minimal, while still maintaining the value-added functions of consolidation and shipping.
Every vendor is asking 2112 about the future role and value proposition of distribution in the channel equation.
And the deal comes months after China-based HNA Group completed its acquisition of Ingram Micro and Tech Data closed its takeover of Avnet’s distribution business.
But before getting all excited about consolidation creating distribution powerhouses, let’s take a step back and look at the broader market trends.
The organization will be called Animal Health International.
“Lextron currently distributes 35,000 animal health products,” said Vice President and Chief Financial Officer Dave Wagley.