Back to Insights
Procurement

The Case for Direct Supplier Relationships

Most operators buy containers and equipment through distributors and dealers. Here's what they're paying for that privilege — and what a direct relationship looks like.

The default procurement path for most portable storage operators runs through a distributor or dealer. It's familiar, it's convenient, and it requires no relationship-building with overseas manufacturers. It also comes with a markup — typically 15 to 30 percent above what a direct factory relationship would cost for the same unit.

For operators buying a handful of units per year, the distributor relationship makes sense. The volume doesn't justify the overhead of a direct factory relationship, and the distributor provides real value in terms of logistics, financing and local availability.

For operators buying 50 or more units annually, the math starts to shift. At that volume, the cost difference between distributor pricing and direct factory pricing is material — often six figures annually for mid-sized operators. The question becomes whether the operational overhead of managing a direct relationship is worth the savings.

In our experience, the answer is usually yes — but only if the relationship is set up correctly. That means understanding factory capabilities and limitations, building in appropriate quality control, managing logistics and customs properly, and maintaining the relationship over time.

We help operators evaluate whether a direct relationship makes sense for their volume and situation, and where it does, we help them establish and manage it. The savings typically pay for the engagement many times over.