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CONSOLIDATED DISTRIBUTORS, INC. (CDI) is a marketing group, an affiliation of wholesale paper and sanitary maintenance distributors with locations nationwide. Also associated with the group as Preferred Sources of Supply are over 80 premier manufacturers of paper and sanitary maintenance products, along with numerous affiliated suppliers of programs and services. Starting with a member base of ten major distributors in July of 1990, the company has grown to a current membership of 100 locations nationwide representing sales in excess of $2.5 billion. The company is owned by its key members, and there are presently 30 stockholders, each owning one (1) share. Members earn the option to purchase stock based on their support of the group's Preferred Sources of Supply. Using the potential purchasing power of these distributor locations, CDI headquarters contacts major manufacturers in the industry to solicit their affiliation with the group. Negotiations with these manufacturers include the payment of a Marketing Allowance (rebate) to the group headquarters, which is justified on the basis of the combined purchasing power of the group members. These Marketing Allowances are then split with the members on a pro rata distribution based on their performance with the group. The Marketing Allowances retained by CDI headquarters are used to defray overhead costs, and a portion of the pre-tax net profits at the end of each year are returned to the stockholders, again, pro rata to their generation of gross profits for the group. CDI is governed by a Board of Directors, who are also members. The responsibilities and authority of this Board include: 1) Establishment of Group Marketing Philosophy 2) Approval of Operating Budget 3) Approval of New Members 4) Approval of Preferred Sources of Supply 5) Development of Auxiliary Programs and Services The CDI Board of Directors Robert Tillis, President - Imperial Bag & Paper Company, Inc. - Bayonne, New Jersey John Vozzo, Executive Vice President - Singer Equipment Company - Reading, Pennsylvania John Caldwell, Vice President of Sales/Marketing - Joshen Paper and Packaging - Cuyahoga Heights, Ohio Keith Dreyer, Operations Manager - Apache Group - Arden Hills, Minnesota Michael Vannatta, President - Great Southwest Paper Company, Inc - Houston, Texas
Brian J. Flynn, President - Alliance Paper and Food Service - Franklin Park, Illinois
Susan G. Vinson, President - Consolidated Distributors, Inc. - Monroe, Louisiana As stated in its mission, the ultimate objective of the group is to secure a member in every major metropolitan statistical area in the country. In conjunction with the growth of this member base, CDI seeks to affiliate itself with the premier manufacturers in each market serviced by these distributors. |