Restaurant Equipment Distributors (Essay Sample)

Restaurant Equipment Distributors Students’ Name University Affiliation Restaurant Equipment Distributors Distribution services form a major component of business operations in the modern world. In particular, numerous corporations in the contemporary society provide delivery services with the purpose of making profits. In essence, the distribution activities involve the provision of products and services to different buyers in a given market. Notably, HD Supply is among the most popular distribution companies in the modern market. The corporation was founded as Maintenance Warehouse in 1974. Indeed, the company was established in San Diego, California. During the initial years of operation, the company had a dedicated free delivery service and delivery trucks. In 1997, Home Depot acquired the company with particular emphasis on the delivery truck and free delivery service. After seven years of operation under Home Depot, Warehouse Maintenance changed to HD Supply. Consequently, Home Depot acquired Hughes Supply in 2006 and integrated it under HD Supply. However, after just a year of operation, Home Depot decided to sell HD Supply to Bain Capital LLC to gain capital for the repurchase of Home Depot stock. Despite the transfer of ownership, the company continued to utilize the name HD Supply (Fernie, 2013). HD Supply continued to develop under the new management of Bain Capital group. Indeed, the development of the company was highlighted on June 27, 2013, when the company went public. HD Supply Holdings Inc. went public to gain public shares as it had developed considerably. As evidenced by the process of going public, the company had grown in stature, capital, and geographical distribution. Notably, the company is divided into three major business units that serve various locations. The operations of the company are mainly based in the United States. In such a way, the corporation operates in 48 states across the nation. Besides, the HD Supply operates in seven Canadian provinces. In particular, the company has 650 operational locations spread across the American states and the Canadian provinces. As an industrial distributor in various locations, the company offers a broad range of services to customers. Indeed, the company provides value-added services and products to about half a million professional consumers. The supplies are spread across various categories including repair and operations, maintenance, and infrastructure. What is more, the company offers power and specialty services in the construction sector. Various components are involved in the distribution channels of the enterprise. The company often offers industrial value-added services to corporations in the construction industry. Maintenance services include the provision of machinery parts to the consumers. After delivery, the company continues and undertakes the necessary repairs for the customer. Notably, three broad categories are utilized in the company. Firstly, the maintenance, operations, and repairs provide HD Supply Maintenance and HD Supply home improvement. Secondly, the infrastructure and power sectors involve HD Supply Waterworks and power solutions (Fernie, 2013). To sum up, the specialty construction category includes HD Supply Whitecap and interior solutions services. Modern market conditions have created an increase in competition levels among corporations. In such a way, numerous companies are involved in similar business activities. In essence, the companies target similar customers while offering similar products and services. Apparently, HD Supply has numerous competitors that seek the same consumers. However, among the numerous competitors, the company has few main competitors. Indeed, the main competitors operate at the same level as the given company. The primary competitors of HD Supply include Ferguson, Grainger, and Rexel. Moreover, Anixter, Watsco, and Fastenal are among the major competitors of the corporation. Each of the companies listed above provides competition in the same locations. Due to the high level of competition, the company has faced countless challenges over the years. However, the management of the company remains tasked with the duty of increasing the competitiveness of the enterprise. In such a way, HD Supply will continue to be competitive with the leading competitors in the industry.  HD Supply FergusonRepairsWhite capInteriorsWaterworksPower Repairs White capinteriorswaterworkspower Price  Rational Rational  High  Average  High  High  Average  High High  High  Quality High  High High  High  High  High  High High  High High  Value  High  Rational  High  High  High Average  Average  Average  Average  Average  Figure 1.1 Comparison of quality, value and price elements in the distribution industry HD Supply payment policy Payment systems are a vital component of business corporations. As evidenced by the main companies, the payment policy influences the success of business in a significant manner. Apparently, HD Supply has an integrated payment system that allows for proper interaction between the customer and the company. Indeed, the objective of the payment policy is to ensure that the customers are provided with a platform that facilitates easy and quick payment (Avraham, Selvaggi, & Vickery, 2012). Moreover, the policy ensures that the products and services of HD Supply are readily affordable. Conversely, the payment plan enables the company to provide the services in an efficient manner. Besides, the objective of the policy ensures that the company can meet the diverse financial obligations. The payment policy of the company includes various elements that control the payment policy of the corporation. Indeed, among the major components of the policy is the cost of early payments. In essence, the company advocates for prompt payments to facilitate growth. Mainly, the cost of paying early involves the lack of credit facilities within the business. In such a way, through early payments, the consumers become more creditworthy as the company believes that they will make the payments as required. Moreover, early payments promote the consumer relations as efficiency in service, and product provision is boosted. Similarly, late payments made to the company have respective costs. Indeed, the late fees have more adverse effects compared to early payments. As evidenced in the payment policy, the company allows late payments to designated consumers across the locations in which the company operates. In essence, late payments reduce the availability of resources to the company as most capital is held by debtors. In such a way, the company stands at a significant risk of bad debts which translate to huge losses for the corporation. Late payments reduce the profitability of the company which is a significant cost for the company to incur. Billing payments are crucial to the company as it facilitates the payments to HD Supply. A diversified method of bill payment increases the customer relations. It is apparent that the availability of various mechanics of payments increases customer satisfaction as they can pay using the preferred method. The company uses different mechanics including credit cards, online platforms, and cash payments. Moreover, clients can make wire transfers to the company as payment for services rendered. Credit facilities are available to particular consumers as described in the payment ...