Richelieu hardware (TSX: RCH) Is a leading distributor, importer, and manufacturer of specialty hardware and related products in Canada. Richelieu is an industry leader in serving coastal to coastal markets with 84 distribution centers, including two manufacturing plants.
Richelieu’s Extensive client base With over 90,000 active customers, we serve through 41 sales offices across Canada, 42 sales offices throughout the United States, and two manufacturing plants in Canada. Of this total, approximately 74,700 customers are manufacturers of kitchen and bathroom cabinets, furniture, doors and windows, or residential and commercial woodworkers, accounting for approximately 83% of Richelieu’s total sales.
Retail market account The remaining 17% of Richelieu’s sales. In 2020, Richelieu’s total sales were 27% from eastern Canada, 21% from Ontario, 17% from western Canada, and 35% from the United States or abroad.
Intelligent acquisition strategy
Richelieu’s current market position is primarily due to aggressive acquisition programs implemented since 1987. Richelieu has taken advantage of the significant fragmentation of the specialty hardware industry to complete 71 strategic acquisitions totaling more than $ 305 million as of today.
The company’s acquisition program allows Richelieu to expand its product lineup, geographically diversify its distribution activities, reach a wider customer base and access new sources from major manufacturers around the world. became. The company also integrated purchasing power for product supply and shipping.
Diverse customer base
Richelieu’s customer base includes kitchen and bath cabinets, furniture, doors, windows, commercial and residential cabinet manufacturers, residential and commercial woodworkers, and hardware retailers including remodeling superstores. In servicing these markets, Richelieu continuously monitors the product lines it offers to emphasize cutting-edge products and eliminate low-profit, slow-moving product lines. I will.
Richelieu’s greatest strength lies in its ability to bring new products to market, which allows it to better meet customer needs. From a distribution perspective, Richelieu’s order processing system enables customers to ship their orders in a timely and efficient manner. Items are typically stored in company warehouse locations according to past demand patterns. Inventory records are computerized so orders can be delivered from the warehouse closest to the customer.
Efficient supply chain network
Inventory is constantly adjusted as demand changes. To minimize delivery times, Richelieu utilizes the services of a variety of independent shipping companies to deliver bulk order shipments to the company’s largest customers. For small orders, Richelieu has shipping contracts with various independent courier companies, offering priority shipping rates set based on annual shipments. These arrangements allow Richelieu to avoid the higher costs of operating its transportation system while maintaining full control and flexibility in managing the delivery network.
Richelieu focuses on creating value for shareholders and contributing to the growth and success of the company’s customers. It achieves this goal while promoting a corporate culture centered on quality of service and results, partnerships and in-house entrepreneurship. This should work.
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