BOUCHERVILLE, Quebec — Distribution Stox Inc. has reached an agreement with Group Michelin to distribute the French tire maker's three main brands — Michelin, Uniroyal and BFGoodrich — to dealers in Canada's Atlantic provinces: New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island.
Distribution Stox, a 5-year-old distributor partnership of four major distributors, now provides 18 brands to its customers. Other major brands include Goodyear, Bridgestone, Firestone, Pirelli, Toyo and Yokohama.
The company said distributing the Michelin brand is "an important breakthrough for this territory and will have a significant impact on the company's distribution network." Customers have been asking for the products for several years, according to Distribution Stox.
The new product lines represent a third of the distributor's market share in Atlantic region of Canada.
"Our customers now have the opportunity to compete with other shops in their region on (Michelin, Uniroyal and BFGoodrich) products," the company said.
In order to accommodate the new inventory, Distribution Stox has enlarged its warehouse in Moncton, New Brunswick, by 30% and its warehouse in St. John's, Newfoundland, by 20%. The company said it also has an option to enlarge its facility in Dartmouth, Nova Scotia, if necessary.
"We are honored, and we consider this agreement as an outstanding opportunity," Leif Ellefsen, executive vice-president and chief operating officer for Distribution Stox, said. "The addition of these brands strengthens our position but also our relationship with our customers from this territory."
The company said it has taken on increased costs, including more personnel, to take on the line.
"But the product line outweighs the cost associated with the additions," the company said.
Distribution Stox recently launched an online-ordering platform, implementing enterprise-resource planning (ERP) software in its Ontario-based facilities.
The platform provides customers with a modern platform that combines "simple, efficient and intuitive features," according to the company. It is the same platform that the company uses in his Quebec location.