SiteOne ($SITE): Mastering the Landscape Supply Chain

Introduction

Since I started to deep dive on Pool Corporation’s (POOL) business model, my interest on wholesale distributors have been steadily increasing. It is fascinating how those companies are able to create virtuous cycles where all the stakeholders surrounding them benefit with the dynamics those companies generate. POOL, for instance, is the leader of the swimming pool industry thanks to is ability to make the selling process much more efficient for more than 2,200 product suppliers and 120,000 customers. Watsco (WSO) is another interesting example: WSO is the largest distributor in the HVAC/R distribution industry in North America and again is able to make the distribution process much more efficient for more than 1,200 manufacturers and 120,000 contractors and technicians. These powerful business models provide many incentives for all the players within an industry to work with them and these, in turn, create feedback loops that keep them growing and improving. SITE, as we wi…