Tier3 Global is a single online platform, compliant with the U.S. Three-tier system, that is shared by industry players and allows for faster and seamless end-to-end transaction processing from producer to the end retailer. Members can connect, sell and participate in the Tier3 Demand Channel Model.
The Wholesale Wine / Spirits / Craft-Beer industry is complicated and can use some different thinking. The traditional Push-Inventory model is rooted from the days when buying the product and then selling it from warehoused inventory was the only way that product could be distributed.
Tier3 is a web-based Platform that facilitates the connections of three-tier trading relationships and provides improved margins for the key participants. It removes cost from the channel and improves efficiency. It provides a central hub for all participants to interact and reduce business friction. It’s revolutionary and its time has come.
The Next Generation of U.S. Three-Tier Distribution Model
The Old Way: "Push Model"
The “push” distribution sales model is a pre-internet model that has existed since the beginning of commerce.
A product manager looks for great purchasing opportunities, loads up the warehouse with product and then the sales staff is told to sell what’s in the warehouse. The customers are forced to pick from a relatively limited “Book of Product” that sales rep must sell.
Distributors must limit their product mix to manageable combinations leaving hundreds of producers out of the distribution channel.
The New Way: "Pull Model"
Instead of loading up warehouses with products that may or may not sell, Tier3 operates on a “Demand fulfillment” basis. Product is staged in distribution centers and moved the “last mile” based on demand from a customer. Pallet and layer purchases can move in a more direct path from producer to retailer. Inventory is better managed, and customers are served more quickly, and channel “cram” is eliminated.
The Digital Chain-of-Custody is an interconnected set of transactions that match the agreed-upon three-tier structure that moves product from producer to retailer.
The negotiated hand-off transactions seamlessly link providing real-time visibility among stakeholders.
Tier3 creates better channel alignment from suppliers to customers and delivers the right customers to the right brands. Because Tier3 “snap-together” transactions are based on customer demand, new brands and products from flow through the channel easily. Now everyone can sell and deliver the right products to the product’s best customers.
No one wants to see the products they sell also being sold across the street and at a huge discount. Tier3 allows real-time visibility into placements so brand owners and retailers can make good decisions about where products belong.
Tier3 has a flexible logistics flow which allows for optimum routing of product to retailers. This means fewer people need to handle the product, warehouse the product and deliver the product. Optimization means higher margins for producers and retailers.
Note: Some states restrict purchasing from some producers. Contact us at Tier3 with specific questions. Tier3 is a facilitation platform and never takes possession of product. All product sales and compliance are handled by our Tier3 members.