Case Studies

SDO adopts reseller model for “pure” revenue stream

A national association that publishes standards for the assessment, maintenance, and rehabilitation of underground utilities was challenged with limited capacity and know-how when managing sales and fulfillment of its training materials.

The legacy process included procurement of materials held in inventory and sold to registered trainers who would oversee and conduct training sessions. The association carried all related costs as well as the burden or order processing, receivables collection, and the challenges of daily shipping across the U.S., Canada, and South America.

The Gilmore Global Solution

Gilmore Global began by consulting with the client to better understand their relationship with registered trainers and the extent of resource allocation limits. We also examined the association’s financial model to determine where cost exposure was highest and how the model was affecting net revenue. It became clear that a reseller methodology was the perfect solution for the association’s challenges.

We developed a program that could be implemented in three steps:

  1. Step one involved building and hosting an ecommerce site bearing the association’s brand to provide a customer-friendly ordering and shipping experience. This included secure access profiles for registered trainers that set restrictions on what they could order and at what cost. In parallel, we established purchasing preferences for each trainer (p-card, credit terms, or both).
  2. Step two involved historical analysis of product consumption, which allowed us to automate re-order cycles, ensuring that course materials were available for immediate fulfillment.
  3. Step three included development of virtual training for registered users of the new system, followed by program launch.

In the new system, Gilmore Global processes all orders at resell costs. At month’s end, we remove costs of goods, shipping, and processing and remit royalties to the association. The result is a “pure” revenue stream with no infrastructure or inventory costs for the client and no credit risk. The association also enjoys robust program reporting and the flexibility to accommodate seasonal change.

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