{"id":4493,"date":"2015-12-09T23:29:26","date_gmt":"2015-12-10T04:29:26","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/trimark-the-ultimate-foodservice-equipment-distributor\/"},"modified":"2015-12-09T23:31:25","modified_gmt":"2015-12-10T04:31:25","slug":"trimark-the-foodservice-equipment-distribution-giant","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/trimark-the-foodservice-equipment-distribution-giant\/","title":{"rendered":"TriMark: The Foodservice Equipment Distribution Giant"},"content":{"rendered":"

TriMark is the largest\u00a0foodservice equipment and supplies distributor in North America. The company is headquartered in South Attleboro, MA, and provides virtually all non-food products used by restaurants and other foodservice operators.\u00a0With ~$1.1bn in sales, \u00a0TriMark\u00a0commands \u00a0~10% share of a highly fragmented $10bn market.\u00a0TriMark is highly effective\u00a0at driving alignment between its operating and business models because it is uniquely positioned to leverage its scale and distribution offerings\/capabilities, delivering cost savings\u00a0and operational value to\u00a0its growing customer base.<\/p>\n

Business Model<\/strong><\/p>\n

TriMark\u2019s offering includes a broad set of equipment and supplies, as well as a suite of value-added services that includes kitchen design, project management, installation and repair. The company stocks more than\u00a08,000 different SKUs\u00a0in its distribution centers and can deliver almost any foodservice product imaginable. Below is an overview of the types of products that TriMark offers.<\/p>\n

\"Products\"<\/a><\/p>\n

TriMark serves a critical role in the foodservice and equipment industry. The company partners with customers over the full lifecycle of its operations, offering planning and\u00a0design expertise, sourcing and installment of equipment, and replenishment of supplies on a recurring basis.\u00a0Most importantly, the company helps manage its customers’ requirements, including on-time equipment and supply deliveries. TriMark is indispensable to customers from the design and installation of equipment to the monitoring of supply levels. Additionally, the company provides\u00a0suppliers with the critical customer access necessary to sell and market their products. For these reasons, TriMark cannot be disintermediated in this industry.<\/p>\n

Operating Model<\/strong><\/p>\n

TriMark has been an effective acquisition platform, but has simultaneously maintained the integrity of each of it’s subsidiaries. This decentralized approach emphasizes the importance of local market knowledge, effectively helping the company act as a regional distributor. However, the company’s dominating market share and national presence\u00a0enhances its\u00a0purchasing power and distribution capabilities, providing important competitive differentiation.<\/p>\n

Customers<\/em><\/span><\/p>\n

TriMark serves a highly diversified customer base, including chain restaurants, independents, institutions, grocery stores, government entities, and internet buyers. Customers include California Pizza Kitchen, The Pasta House, Washington State University, Cheesecake Factory, Shake Shack and Zaxby’s<\/p>\n

Suppliers<\/span><\/em><\/p>\n

As the largest distributor in the North America, TriMark is also a top vendor partner for\u00a0most of the leading kitchen equipment manufacturers and suppliers. TriMark has developed long-lasting relationships with its suppliers and\u00a0has preferred agreements with all of the top manufacturers in the business.\u00a0TriMark\u00a0leverages this\u00a0unique relationship with suppliers to achieve a superior cost position.\u00a0Furthermore, TriMark\u00a0is part of several buying groups including NexGen and ABC. These memberships entitle\u00a0the company to significant purchasing advantages resulting in meaningful rebates and discounts, translating to further cost savings for its customers.<\/p>\n

Distribution Network<\/span><\/em><\/p>\n

TriMark’s footprint is vastly superior to its competitors. Its geographic breadth allows the company to provide time-sensitive deliveries faster and cheaper.\u00a0In this industry, freight costs are passed onto the customer. Therefore, the proximity of distribution centers is not trivial for customers.<\/p>\n

\"\"<\/p>\n

Additionally, TriMark\u00a0holds an extensive inventory to service its customers consistently on-time. While beneficial to the customer, holding such a large amount of inventory reduces\u00a0TriMark’s cash flows and subjects the company to some risk of\u00a0obsolescence.<\/p>\n

Summary<\/strong><\/p>\n

TriMark has significantly expanded its distribution footprint, product and service offerings and customer base through organic growth and acquisitions (most recently\u00a0acquiring\u00a0Strategic Equipment & Supply Corporation in Florida, further enhancing its operations and distribution footprint in the Southeast). Due to its scale, the company enjoys significant purchasing and distribution advantages. Furthermore, the scale and customer access has made TriMark a critical partner to\u00a0manufacturers. As a result, TriMark has become the largest national player in the industry.<\/p>\n

Sources<\/strong><\/p>\n

    \n
  1. http:\/\/www.trimarkusa.com<\/li>\n
  2. http:\/\/www.fesmag.com\/research\/distribution-giants\/12504-2015-distribution-giants<\/li>\n
  3. Foodservice Equipment Reports 2012<\/li>\n
  4. Manufacturers\u2019 Agents Association for the Foodservice Industry<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    In a growing, but fragment foodservice equipment distribution space, TriMark has managed to become the largest consolidator by providing better value to customers through a superior operating model vs. peers.<\/p>\n","protected":false},"author":1094,"featured_media":5513,"comment_status":"open","ping_status":"closed","template":"","categories":[252,781,780,783,34,782],"class_list":["post-4493","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-distribution","category-equipment","category-foodservice","category-kitchens","category-restaurants","category-supplies"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\nTriMark: The Foodservice Equipment Distribution Giant - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/trimark-the-foodservice-equipment-distribution-giant\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TriMark: The Foodservice Equipment Distribution Giant - 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