Roscoe expands distribution

Saturday, May 31, 2008

STRONGSVILLE, Ohio--Roscoe Medical continues to do everything possible--and has for several years now--to show providers that it’s no longer just a niche distributor of respiratory products.

Over the past few months, the company has opened a West Coast warehouse, hired a new national sales director and expanded its offering of Roscoe brand products, which now account for more than 50% of the company’s 7,000 SKUs, said President Jesse Keirn.

“It’s a challenge to overcome many years of being seen as a niche provider, but we are starting to make some gains and seeing positive results,” he said. “We are a manufacturer. We are an importer. We can private label for you. We can do a lot of things that the competition, the big boys, have been doing for years.”

The new 30,000-square-foot warehouse is key to the company’s expansion plans. With competitive bidding and dwindling reimbursement, many providers can no longer afford to stock products. Instead, they choose just-in-time inventory and often need product the next day. From the company’s Cleveland warehouse, it could take two or three days to ship products out West. The new facility cuts that lead time, in many instances, to one day, Keirn said.

“This is a big move and expensive but necessary,” he said. “It’s a natural growing pain. As we advanced into DME, the items are heavier and costlier to ship, and it became apparent to us that we needed to find other ways to distribute product to the West Coast.”

Roscoe has plans on the drawing board to open a third warehouse next year in the Southeast United States, possibly in Tennessee or Florida, Keirn said.

The company’s new national sales director, Mike Giesken, takes over those duties from Co-President Richard Keirn, freeing him up to focus more on long-term forecasting and business planning.