Stillwell-based Cherokee Nation Distributors dive into office

Journal Record, The (Oklahoma City), Jul 31, 2006 by Kirby Lee Davis

Cherokee Nation Distributors has expanded into office supplies.

The Stillwell-based sister company to Cherokee Nation Industries, business arm to the Native American nation, has reached a distribution agreement with Corporate Express of Broomfield, Colo., to take over much of the national firm's northeast Oklahoma sales, including portions of Tulsa.

No physical assets were transferred in the agreement.

Marcus Hendricks Sr., vice president of business development for Cherokee Nation Distributors, said his organization will take over sales and distribution for 952 potential clients in 14 Oklahoma counties.

The agreement also gives the Cherokees the right to create national accounts with other Native American operations or handle national customers that visit its Web site, www.cnicnd.com. Going online gives customers full access to the 65,000 items carried by Corporate Express, which claims the top spot as the nation's largest business-to-business supplier of office materials.

"This relationship with Corporate Express will help satisfy two main goals the Cherokee Nation has set forth - create jobs for our citizens and increase revenue for tribal services," said Chad Smith, principal chief of the Cherokees.

Brad Coates, sales representative for Corporate Express, considered it a good move for his firm as well. It operates similar agreements with other Native American tribes.

"We have targeted the midmarket customers in northeastern Oklahoma," he said, "but our main focus has primarily been the Tulsa metro area. This new relationship will expand our sales team on the ground."

For the next few months, Cherokee Nation Distributors will continue to use the existing Corporate Express delivery system and Tulsa warehouse. Hendricks said Cherokee is looking for possible locations - Tahlequah and Pryor are under consideration - to operate a warehouse of its own, from where it could provide same-day service for its entire region. It may add other warehouses as future business dictates.

Hendricks projected the firm would add three jobs in the first year to handle office product sales and delivery, which could grow from 10 to 15 jobs in warehousing, delivery and sales. It also will develop a fleet of two to four delivery vehicles.

The deal brings an added dimension to CND, a HUBzone and 8(a) certified business primarily known for its distribution of telecommunications, electrical and aerospace equipment. Hendricks projected $2 million to $3 million sales the first year, set from a goal of collecting a 1,000-member customer base from businesses with 50 employees or more. Such buyers could each generate repeat business totaling $10,000 a year or more.

"We'll be able to get office products to customers quicker than before, at the same rate or cheaper," he said. "We believe we will really be able to enhance our customer service, especially here in northeast Oklahoma."

The Corporate Express product line ranges from office and computer supplies, including furniture and software, to promotional products and other items.

With operations in more than 17 countries and partnerships in 11 others, Corporate Express, with $4.6 billion in annual sales, is considered the only global business-to-business office products company. It is a wholly owned subsidiary of Buhrmann NV, an international business services and distribution group that garnered $7.3 billion in sales for 2005.