Factor Pro
General Data:
Company name: FACTOR PRO
Sector: Hardware and Industrial Supplies
Year of foundation: 2014
Location (headquarters): Madrid
Number of members: 2
Number of members: 450
Number of establishments: 552
Total number of employees (direct and indirect): 2000
Total revenue: €370,000,000
Factor Pro, conceived in 2014 as a strategic alliance between two leading players in the hardware and industrial supply sectors, Ferbric, representing domestic hardware, and the GCI Group, representing industrial hardware. This union is not simply the juxtaposition of two independent and diverse structures, but rather the sum of their synergies, sharing the best of each to create a more powerful and efficient entity.
The genesis of Factor Pro lies in the initial collaboration between Ferbric and Grupo GCI, quickly evolving into a fundamental role, becoming the back office for both companies. Despite this integration, the independence, identity, and philosophy of each credit union involved have been carefully maintained. This approach has allowed both the preservation of each company’s distinctive characteristics and their mutual reinforcement.
Factor Pro’s organizational model is a testament to collaborative negotiation, where brand preservation becomes a fundamental principle. Although both credit unions join forces to leverage economies of scale and shared efficiencies, they recognize and respect each other’s individual objectives. Responsibility is shared between the two partners, who perform specific functions in the absence of dedicated Factor Pro staff. This innovative approach allows for maximizing the professional resources available at the partner credit unions.
In terms of tools and technologies, Factor Pro relies on a robust digital catalog of over 300 pages, digitizing more than 60 suppliers. This digital platform simplifies access to a wide range of products, while positioning the company at the forefront of digital transformation in its sector.
Business model:
Factor Pro’s business model stands out for its value proposition centered on proximity and collaboration. The company is not simply an intermediary, but offers comprehensive services to its members. From recruiting new members to fostering loyalty, and including crucial aspects such as marketing, corporate store design, product assortment, branding, and cataloging, Factor Pro positions itself as a strategic partner for its members. Its centralized negotiation capabilities with leading industry suppliers add a key component to its value proposition.
The active participation of both partners in the alliance results in a constant flow of know-how and the strategic alignment of their individual strengths. This synergistic collaboration further strengthens Factor Pro’s market position.
Factor Pro’s success story is built on courageously facing challenges and resolving them with innovation. Since its inception, the company has significantly increased the number of its locations, solidifying its market presence. Furthermore, its ability to establish cross-sector collaborations with groups in synergistic areas has expanded its network, incorporating other Purchasing and Service Centers (PSCs) from diverse sectors.
Tips from experience:
Based on the experience gained, Factor Pro highlights the importance of seeking common ground and synergies to enhance efficiency and improve negotiations with suppliers.
Next steps:
Looking to the future, Factor Pro has a clear vision for the evolution of its business model. Systems integration between the two partners is on the horizon, aiming to further enhance competitiveness and explore new opportunities. The ability to address online sales by suppliers on marketplaces and the consideration of an international merger and integration are strategic steps toward developing a more robust business model better suited to the challenges and opportunities of the global market.