J.P. Morgan consolidated JDS's financial operations under one roof, offering a full suite of banking services, including next-day funding, ACH and international/domestic wire transfers. This integration streamlined JDS's financial operations, facilitating efficient inventory management and enhancing customer service.8
Key takeaways
- JDS Industries (JDS) faced challenges with increasing transaction volumes and the need for quick fulfillment, requiring efficient inventory management and fast delivery to maintain customer satisfaction
- Integrated payment solutions from J.P. Morgan empowered JDS to innovate and deliver exceptional service with real-time transaction visibility, anti-fraud measures and scalable infrastructure
- Through J.P. Morgan Commerce Solutions, JDS achieved a 10% reduction in transaction costs, saving more than $160K annually and 50% faster payment processing, enhancing cash flow, supporting growth and reinforcing their status as a top industry supplier1
About
Founded in 1973, JDS has recently become a 100% employee-owned enterprise specializing in the distribution of supplies to the awards, gift personalization and sign industries.2 The company boasts a catalog of over 25,000 products and efficiently distributes more than 100 million components annually.2
With a growth rate exceeding 25% over the past three years, JDS needed more than a standard payment processor. It required a comprehensive banking solution to support streamlined operations and rapid fulfillment.3 J.P. Morgan stepped in, offering a full suite of services, including credit card processing, ACH services, international and domestic wire transfers, and robust anti-fraud measures. According to Jason Klein, Chief Financial Officer at JDS Industries, this collaboration empowered JDS to innovate, manage inventory effectively and deliver exceptional service, ensuring it could meet customer demands and expand strategically.
50% Faster processing3
10% cost reduction per credit card transaction3
100K+ in annual savings from Level 2 tax augmentation3
$60K savings via ChaseNet3
“J.P. Morgan gives us the ability to grow. Whether we handle 2,000 or 4,000 transactions a day, we don’t see a difference in service. The value we get is more efficient transactions, quicker processing, and a better experience for our customers and suppliers.”
Jason Klein
Chief Financial Officer, JDS Industries
The challenge
In an environment where operational efficiency and innovation are paramount, JDS faced a series of critical challenges as they expanded their operations.3
With over 80% of their business conducted online, accessing real-time transaction data was essential to protect profit margins and manage over $100 million in annual credit card transactions.3 Processing thousands of transactions daily, the inability to process payments quickly became a strategic risk, especially during peak seasons when transaction volumes could double or triple.3 Mike May, President of JDS Industries, highlighted the need for a reliable and swift payment processing solution to maintain customer trust and operational efficiency, compounded by the necessity to protect against fraud, particularly in high-volume international transactions.
Inventory management during predictable spring and winter peaks posed another significant challenge. According to May, JDS needed to ensure sufficient stock levels to meet customer demand without overextending resources, maintaining a delicate balance of inventory management and logistics. Its ability to ship products the same day was a key advantage, requiring precise logistics across 13 warehouses nationwide.4 Customers often relied on JDS Industries to act as their backroom storage, making timely delivery essential to maintaining their competitive edge.5
Innovation and product development were at the core of JDS's strategy, presenting further challenges.5 Klein explains that customers increasingly relied on JDS to deliver new products that set it apart in competitive markets. Continuous development of new lines, such as personalized gifts and vacuum-insulated drinkware, demanded robust support systems to keep pace with evolving market demands.6 This focus on innovation not only fueled growth, it also attracted a diverse customer base, reinforcing JDS's position as a market leader.6
The transition to a 100% employee-owned structure introduced additional complexity, requiring sophisticated employee stock ownership plan (ESOP) financing solutions to ensure a smooth transition for its 360 employee-owners.7 According to May, this shift was crucial for maintaining business continuity and securing the company's future, empowering employees and aligning their interests with the long-term success of JDS Industries.
Overall, JDS Industries needed comprehensive solutions to address these multifaceted challenges, enabling the company to streamline operations, enhance customer satisfaction and drive strategic growth.
“From the very beginning, it was clear that J.P. Morgan was a customer-centric organization—just like JDS. Switching to J.P. Morgan cut processing time down in half, and we save an average of 10% on every credit card transaction. Processing over $100 million in credit card transactions per year adds up to a big number.”
Jason Klein
Chief Financial Officer, JDS Industries
The solution
J.P. Morgan provided JDS Industries with a comprehensive suite of solutions that addressed their operational challenges and supported their strategic growth:
J.P. Morgan Commerce Solutions provided consistent service levels, regardless of transaction volume. This helped JDS to efficiently manage varying transaction volumes during cyclical business peaks without compromising quality. The robust back-end processing systems enhanced the customer experience, enabling JDS to offer efficient self-service options and quick transaction processing.8
J.P. Morgan card processing systems reduced processing times and costs while providing next-day funding, helping to ensure JDS had quick access to funds—crucial for maintaining cash flow and operational efficiency during peak seasons.8
J.P. Morgan reporting tools provided real-time visibility into transactions, enabling JDS to monitor and optimize payment behavior. This granular detail helped align with working capital strategies and improve operational efficiency.8
J.P. Morgan anti-fraud services offered consistent alerts and tools to help protect against fraud, particularly in high-volume international transactions. These proactive measures helped to safeguard JDS's financial operations, maintaining customer trust.8
Expertise in ESOP financing from J.P. Morgan facilitated a smooth transition to a 100% employee-owned structure, helping to secure the future of the company for its 360 employee-owners.9
Despite JDS being headquartered in a region with limited big bank presence, the J.P. Morgan approach felt like a local banking experience. Its teams from various locations provided personalized support.9
Overall, the comprehensive banking and financial services provided by J.P. Morgan were instrumental in addressing the challenges faced by JDS. By providing a full suite of services, including credit card processing, ACH services, international and domestic wire transfers, and anti-fraud measures, J.P. Morgan has helped support JDS’ growth and expansion plans.9 This collaboration not only enhanced operational efficiency but also empowered JDS to innovate, manage inventory and deliver exceptional service to its customers.9
"J.P. Morgan provides us with the resources to grow. Their systems give us full visibility of every transaction, allowing us to monitor everything in real time. This level of detail helps us understand our business better and keep costs down for our customers."
Jason Klein
Chief Financial Officer, JDS Industries
The results
The impact of the J.P. Morgan solution was multidimensional. Klein broke down the benefits:
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Cost reduction: JDS achieved a 10% reduction in credit card processing costs, translating to substantial savings across more than $100 million in annual card volume.
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Faster processing times: Payment processing times were cut by 50%, accelerating cash application and improving working capital rotation.
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Enhanced cash flow: Next-day funding for credit card transactions helped ensure JDS had quick access to funds, maintaining smooth operations during peak seasons.
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Improved fraud prevention: Robust anti-fraud measures reduced the risk of fraud in international transactions, safeguarding financial operations. JDS processes $60 million in international wires annually, with consistent updates and tools provided by J.P. Morgan to mitigate fraud risks.
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Optimized operational efficiency: Automated processing of 80% of transactions kept processes efficient and saved time for customers, allowing JDS to handle thousands of transactions daily without increasing staff.
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Scalable systems: The scalable payment platforms handled varying transaction volumes seamlessly, maintaining consistent service levels during cyclical business peaks.
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Financial visibility: Detailed reporting and real-time visibility into transactions aided strategic decision-making and improved financial oversight.
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Growth support: Resources and expertise from J.P. Morgan supported JDS Industries' growth plans, including product development and potential mergers and acquisitions. The company develops approximately 1,000 new products annually, with J.P. Morgan resources aiding in strategic growth initiatives.
"Together with J.P. Morgan, we are committed to providing exceptional value and experiences to our customers, ensuring their success and ours."
Mike May
President, JDS Industries
The strategic collaboration between JDS Industries and J.P. Morgan has been transformative. By leveraging J.P. Morgan's comprehensive solutions, JDS streamlined operations, cut costs and enhanced its market leadership, empowering JDS to meet customer demands efficiently and pursue ambitious growth plans.10 Together, JDS and J.P. Morgan have built a strong foundation for sustainable success.
Looking ahead, JDS plans to deepen its use of J.P. Morgan Commerce Solutions to benchmark competitiveness, identify emerging trends and refine its go-to-market strategy across regions.11 These capabilities will enable JDS to sharpen its positioning and strategically allocate resources in line with customer behavior and geographic demand.11
Learn more about J.P. Morgan Commerce Solutions here.
References
1.
J.P. Morgan. "Interview with Jason Klein, Chief Financial Officer of JDS Industries." March 14, 2025
2.
"About Us." JDS Industries, www.jdsindustries.com/about. Accessed July 7, 2025
3.
J.P. Morgan. "Interview with Jason Klein, Chief Financial Officer of JDS Industries." March 14, 2025
4.
JDS Industries: About." LinkedIn, www.linkedin.com/company/jds-industries/about/. Accessed July 7, 2025
5.
J.P. Morgan. "Interview with Mike May, President of JDS Industries." March 14, 2025
6.
J.P. Morgan. "Interview with Jason Klein, Chief Financial Officer of JDS Industries." March 14, 2025
7.
J.P. Morgan. "Interview with Mike May, President of JDS Industries." March 14, 2025
8.
J.P. Morgan. "Interview with Jason Klein, Chief Financial Officer of JDS Industries." March 14, 2025
9.
J.P. Morgan. "Interview with Mike May, President of JDS Industries." March 14, 2025
10.
J.P. Morgan. "Interview with Jason Klein, Chief Financial Officer of JDS Industries." March 14, 2025
11.
J.P. Morgan. "Interview with Mike May, President of JDS Industries." March 14, 2025
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