What is Archesol?
Archesol is a US-based online non-stocking business to business (B2B) export distributor of US made heating, ventilation, air conditioning, refrigeration, mechanical, electrical, plumbing and industrial parts to Middle East and Africa (MEA) customers.
How does the online marketplace program work?
US Manufacturers of MEP, HVACR and Industrials products expressing participation interest to productlisting@archesol.com, will receive Archesol’s product listing requirements. Product details are published on Archesol’s online e-commerce marketplace. Customers purchase from Archesol online using credit cards or wire transfers. Archesol issues suppliers corresponding PO’s from its US HQ in Huntington, New York. Suppliers ship products on pre-pay and add basis to Archesol’s US freight forwarder located in New Jersey who consolidates and ships overseas. Suppliers issue Archesol invoices per agreed terms and Archesol pays suppliers utilizing the ACH payment method. Refer to archesol.com for relevant terms and conditions.
What value does Archesol provide its suppliers?
“Archesol provides the most effective online sourcing and purchasing model for distribution of MEP, HVACR and industrial parts to MEA business customers. US manufacturers save on the initial and recurring cost of establishing and managing regional sales and technical support operations. Archesol lowers barriers to entry, improves cross selling and minimizes customer churn, pricing inconsistences and misaligned market pricing. The business opportunities for suppliers, both intermediate and long term, are quite compelling. Archesol has access to all key MEP and HVACR contractors, consultants and industrial end users. To effectively facilitate business development, product approvals and customer support, Archesol has established a GCC regional customer support office in UAE. Additionally, Archesol exhibits on average in 5 regional tradeshows per year.”
The Middle East and Africa are complex markets. How does Archesol reduce the complexity for its suppliers?
Archesol has many years of experience marketing and selling custom engineered and standard products to consultants, manufacturers, contractors and service providers in different countries and customer segments throughout the MEA region. Archesol’s market, application and customer knowledge, online distribution model, familiarity with product approval processes, export shipping logistics capabilities and compliance with US export regulations mitigate the export distribution risk and take out the complication from sourcing, purchasing and delivery.
What types of companies are Archesol’s suppliers?
Archesol currently procures from 160+ US manufacturing public and private companies. These are companies desiring, through a direct-to-business customer distribution methodology, to capture their full potential of profitable growth from Middle East and Africa markets.
Will this program cost suppliers money?
Suppliers are not expected to incur additional cost for participating in Archesol’s online marketplace. Participation will in fact save suppliers initial and recurring distribution costs and increase their profitable growth.
Do suppliers have to carry inventory?
Suppliers are not expected to carry additional inventory for participating in Archesol’s online marketplace.
What are the expected lead times?
Standard lead times are indicated by suppliers when completing Archesol’s product listing requirements.
How do suppliers get paid for products sold to Archesol?
Suppliers issue Archesol invoices for products shipped per agreed payment terms and Archesol pays suppliers utilizing the ACH payment method.
What are the expected Archesol payment terms?
Archesol desires Net 60 days.
Do suppliers have to carry inventory for this program?
Suppliers are not expected to carry additional inventory for participating in Archesol’s online marketplace.
Do suppliers have to carry additional product warranty?
Suppliers are expected to provide their standard warranty policy for publication on Archesol’s online marketplace. Suppliers are not expected to carry additional product warranty. Suppliers are expected to provide at least 1 (one) year product warranty from date of shipment from suppliers’ facility.
Can suppliers revise prices anytime?
Suppliers can revise product pricing as needed by providing Archesol a written notification. Archesol prefers that prices are fixed for at least 6 (six) months.
What are suppliers' potential contractual or legal exposures?
Nothing unusual. Archesol urges suppliers to familiarize themselves with the relevant terms and conditions found on archesol.com.
Can suppliers easily opt out after joining Archesol’s online marketplace?
Suppliers can opt out at any time by giving Archesol 30 (thirty) days’ written notice.
Can suppliers and their products be delisted?
Suppliers and / or supplier products can be delisted. Archesol urges suppliers to familiarize themselves with the relevant terms and conditions found on archesol.com.
How does Archesol handle procurement of custom products?
Archesol utilizes its web-enabled RFQ tools or communicate with customers and suppliers. Once Archesol’s New York-based engineers receive needed item details, they will coordinate with suppliers for firm pricing and lead times. After receiving customer and supplier verification and approval, Archesol processes custom products the same way it processes transactions of marketplace listed standard products.
How does Archesol make money from this program?
Archesol applies a thin margin to supplier prices. Since Archesol prices are published online, suppliers can always verify Archesol’s markup.
Will Archesol’s online e-Commerce marketplace present a channel conflict for some suppliers?
Archesol’s online e-commerce marketplace is a high-potential no-cost complement to suppliers’ existing distribution channels. Suppliers will avoid the exclusivity trap, save on initial and recurring sales & support expenses and give customers more purchasing choices.
What has been the B2B business growth for Archesol in the past couple of years?
Archesol has had a strong sales performance over the past couple of years. In 2017, Archesol processed 3,830 unique B2B purchase orders for US products from MEA customers; a 28% increase on the number of purchase orders processed in 2016. The Q1, 2017 to Q1, 2018 sales growth was a solid 56%.