Private Labeling Key Benefits

Private Labeling Key Benefits

Most manufacturers realize they are not capturing all the potential service and aftermarket parts business in their distribution network.  These parts can range from regular service parts with a short life, such as filters and belts, to replacement components for commonly lost or damaged elements, such as small parts kitting.  Manufacturers producing anything from agricultural equipment and lawn mowers, to medical or marine equipment, are discovering the benefits of increasing profits through private labeling of parts with an integrated partner such as Fapco.

Scott Sloniker, Operations Manager, explained that in the competitive arena of “will fitters” (companies producing similar parts that ‘will fit’ a manufacturer specific model), many manufacturers are turning to private label inventory management and non-traditional supply chains to fight the onslaught of these competitors.

“Regardless if it is electrical components or industrial machinery, if there’s an opportunity to replace or repair a part in the field, there’s a competitor more than happy to provide that part.  To combat this activity, many manufacturers are developing their own private labels.  This could even be at a lower cost or outside of their traditional dealer network—to big box retail stores for example—but it keeps the manufacturers in the game with their own version of the ‘will fitter’ parts to help maintain their market share.”

“It’s like beating the aftermarket “will fitters” at their own game. It’s basically the same exact part but the manufacturer markets the part, distributes and stocks at the retailer to win back some of the lost market share.”

Many manufacturers are realizing, with foreign aftermarket parts flooding the market, private labeling keeps them in the parts game and many times they actually push the competitor off the shelf at the big box store level because the manufacturer brands the parts.

A major advantage Fapco offers in support of a private label program is having the capacity, equipment and experience to quickly package and distribute products with no additional investment by the manufacturer.  “We are very adaptable and nimble.  The manufacturer ships the parts in their raw state off their production lines to us and we take it from there,” stated Sloniker. “One of the keys to a successful private label program involves keeping all the elements in their raw state.  In this way the parts and packaging materials can be pulled from the inventory in our warehouse, packaged and fulfilled on an as-needed basis.  Not having packaged parts sitting around on warehouse shelves maximizes the ability to pursue growing categories or markets.”

Whether its part kitting, warehousing, or cold seal solutions, Fapco Inc. will work to help your business grow. Get Started with Fapco Inc. today!

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