Large inventory allows Europa Sports to provide quick delivery.

Substantial annual sales increases allowed Europa Sports Products to break the $88 million mark last year.

Located in Charlotte, N.C., Europa Sports is a national distributor of sports supplements, supplying specialty retailers, health clubs and the military. Europa Sports operates one of the largest, award-winning supplement Web sites, offering more than 160 product lines consisting of about 3,500 sport supplements, nutrition bars and weightlifting/fitness accessories.

CEO Eric Hillman says consumers have been gravitating toward supplements that provide both taste and functionality. "When you are trying to appeal to all ages and genders, the protein powder from five years ago will not be as popular as the new ones being released currently," he explains. "The same holds true for most other supplements."

Hillman says the marketplace constantly shifts. Low-carb products have always been considered a mainstay in the industry and were recently extremely popular. Now, balanced nutrition is gaining popularity and attention. Creatine products, protein powders and bars are still popular, as are ready-to-drink items.

Vendor relations are a key component to Europa Sports' ability to keep its volume of products, as well as service its customers. Hillman says Europa Sports maintains strong vendor relations. "They value our opinions and ask for our input on various issues," he says. "They also like the emphasis Europa places on customer service instead of trying to lure customers based only on pricing."

By maintaining positive relationships, Europa Sports helps ensure it can offer the best products to satisfy its customers' needs. Europa Sports and its vendors keep each other up-to-date on current trends and requirements in the market, Hillman explains. "The most important thing in our relationship is communication," he says. "It is the difference between being a great distributor and just a distributor. Our goal at Europa is to out-service our competitors and over-deliver to our customers. These relationships assist us in our achieving our goal."

Europa Sports services more than 15,000 customers and can deliver to about 94 percent of the country. Sales representatives advise customers on merchandising and product decisions, as well as provide insight into market demands. Hillman says the company's training program develops sales representatives' product and market knowledge, which brings added value to the customers.

"All new reps go through a four-week customized training course developed collectively by all other departments," Hillman explains. "During this training, sales reps will follow structured sessions and sit in with other departments to better orient themselves with all aspects of the company."

To ensure sales representatives are meeting customer needs, Europa Sports encourages customers to provide feedback through comment cards. Third-party surveys are conducted and repeat business is also monitored to assess satisfaction levels. "Europa has been doing its own customer research and surveys to monitor performance through our customers," Hillman says. "Europa can then adjust strategies and services to better suit our customers. Europa is built on the success of its customers. Our customers' success is our priority."

Even with Europa Sports' extensive inventory, the company says, its out-of-stock items are less than 1 percent. The company maintains a total of more than 215,000 square feet of warehouse space in its four locations: Charlotte, N.C.; Mesquite, Texas; Fresno, Calif.; and Strongsville, Ohio. "We warehouse products so our customers don't have to," Hillman says. "With four strategically placed locations, Europa can ship to most of the United States in two days or less."

Europa Sports maintains six to eight weeks of inventory - based on its projections - which helps eliminate potential out-of-stock situations, Hillman explains. "With four distribution centers and vendors located throughout the country, we find it's better to carry a little extra to ensure that when a customer calls, we have what they are looking for," he explains.

Europa Sports also practices daily cycle counts at each warehouse, so inventory figures are accurate. "Our main approach is to never be out," Hillman says. "With our customer in mind, we know this is our biggest strength and therefore it needs to be managed properly and effectively."

The company continuously evaluates its processes to evaluate item cycles, stocking and efficient product storage. "We also take into consideration things outside of our control like vendor replenishment rates and vendor manufacturing lead times," Hillman adds. In addition, maintaining its own fleet of trucks at all warehouse locations, as well as relying on UPS, guarantees prompt deliveries.

Hillman says Europa Sports plans to continue on its path of excellence. The company plans to work with vendors to illustrate how using Europa Sports' warehouses for their shipping needs will allow them to focus on marketing, rather than distribution.

"We also plan to work with larger chains, such as Sport Authority, Bally Total Fitness and the Vitamin Shoppe, to help with their product mix," he explains. "And we intend to show multi-chain store owners that using our inventory and quick shipping will help their own inventory management and better utilization of their dollars."

Europa Sports is completing the installation and integration of warehouse management systems to all its warehouses to further increase product management and inventory controls. "We have continued plans for additional, company-wide process automation, as well as intend to seek diversification in other potential health markets," Hillman notes. "Above all, we strive to continue contributing to the success of our vendors and customers."