Private labels offer profits, pitfalls

NAW SmartBrief | 02/18/2008

Industrial distributors are seeing rapid growth in private-label products. About 57% of private-label products are sourced overseas -- mostly in Asia and Latin America -- and that figure could reach 81% by 2012, says Pembroke Consulting President and NAW Institute for Distribution Excellence Fellow Adam J. Fein, Ph.D. Though the opportunity for higher margins makes private labels attractive, such products often come with hidden costs in warehousing and logistics. Progressive Distributor (02/01)

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