Palonet, an electrical distributor specializing in OEM products, has introduced two Web-based tools to help other distributors locate and sell hard-to-find and slow-moving items.

Developed exclusively for wholesale distributors, Palonet's Surplus Inventory System (SIS) sells slow-moving or obsolete items; its Parts Locating System (PLS) locates nonstocked or hard-to-find items.

The systems, strictly comprised of member distributors, currently have about 220 distributor members. Palonet hopes to grow the distributor network to 1,000 members by the end of this year.

“It creates a pool of distributors that can work with each other to satisfy their customers' needs,” said Greg Sills, Palonet's president. “You can be either a buyer or a seller on the system, depending on whether you're getting a request for an item or you're responding to some other member's request for an item.”

No cost is associated with becoming a member, and members may list as many surplus items as desired. Palonet makes its money with a transaction-fee markup of about 9 percent that is passed on to the buyer.

Palonet is also setting up a representative network. Reps that sign up members would earn a commission on any activity that occurs for a rep's sign-ups.

Sills said many different distributors from across the country have become members, including some larger chains that have signed up individual stores. “Some distributors believe they have a handle on their procurement and their surplus; others say this is a strong tool for unloading surplus and satisfying customer needs without wasting a lot of time,” said Sills.

The systems became fully active June 3.

“It's a new system, so people don't think of it first,” said Sills. “They think of their old way of calling around town trying to find the item. When they use it, they like it.”

Distributors may call Sills at (800) 917-4557 to learn more about the Surplus Inventory System and the Parts Locating System. Palonet, headquartered in Santa Fe Springs, Calif., was founded in 1982.

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