They became an extension of the maintenance and procurement for their customer.
The model worked. Refiners offloaded the complexity and capital burden of inventory management. Distributors built durable, profitable relationships. Manufacturers gained cleaner, more predictable channels to end users.
Wall Street Takes Over the Warehouse (Mid-2000s
In the mid-2000s, the ownership of many of the largest distributors transitioned from family-owned companies to Wall Street-based investment firms. And the new owners scrutinized inventory and began prioritizing capital efficiency over availability.