2. CDW Overview
Founded in 1984
•
IPO in 1993
•
Privately acquired by Madison Dearborn Partners
•
LLC on 10.13.07
$8.1 billion in annual sales
•
− Forbes: Number 39 America’s Largest Private
Companies
− 2008 America’s Most Admired Companies in the
quot;Wholesaler: Electronics“ : FORTUNE
− Ziff Davis, CIO/INSIGHT-Vendor Value Study rated
CDW #1 in industry (HP was #6)
− 2007: Ranked no. 343 on the FORTUNE 500
2 24 October 2008
3. CDW Net Sales & Net Income
(in millions)
$9,000
$8,145
Fortune 500, No. 343
$8,000
FORTUNE Magazine - 2007
$6,785
$7,000 $6,292
$5,738
Top 100 Best Companies to
$6,000
$4,664
$4,264
work for, No. 34
$5,000 $3,961
FORTUNE Magazine - 2006
$3,842
$4,000
$2,561
$3,000
Total Return To Shareholders -
Last Ten Years, No. 28
$2,000
FORTUNE Magazine - 2005
$1,000
$300
$0 $272 $266
1999 2000 2001 2002 2003 2004 2005 2006 2007
$241
$250
NASDAQ 100 $200 $185
$175
$169
$162
Most Bang For The Buck; Most Revenues $150
per Dollars of Assets, No. 15
FORTUNE Magazine - 2005 $98
$100
Most Bang For The Buck; Most Revenues
$50
per Employee, No. 45
FORTUNE Magazine - 2005
$0
1999 2000 2001 2002 2003 2004 2005 2006
3 24 October 2008
4. CDW Overview
Over 450,000 Active Customers
•
7 US call centers spanning 5 states-Arizona
•
opening June 1st
11 Regional Field Offices - associated with
•
Berbee Acquisition
2,500 Account Managers-segmented by
•
geography & vertical, margin based comp
300 field representatives
•
400 field engineers
•
4 24 October 2008
5. Inside and Field Coverage
Inside Account Manager Team
•
− Responsible for the day-to-day interaction on the account
• Order processing
• Allocation and delivery
• Customer satisfaction
Field Account Executive
•
− Management of over-all relationship drivers
• Executive Introductions
• Execution of Advanced Technology Deliverables
− Resource facilitator
• Project Manager
• OEM vendor involvement
• Strategic CDW technology resources
− Dedicated field resources
• Field Solution Engineers
• Field Strategic Software Executive
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6. CDW Go-to-Market
Complex solutions integration
•
− Unified communications*
− Web hosting & managed services*
CDW & Berbee*
Mission On-site technical support required
•
critical
Industry-standard Attach core
• •
solutions services
CDW & Berbee* Trusted Servers, Blades, SANS,
• 400 system
•
racks, networking,
advisor engineers at
software and telephony
CDW
Operational excellence
•
CDW Core
Cross-sell & Up-sell
•
Speed, agility, ease of business
•
Transaction
Great selection, strong price performance
•
* Berbee currently operating in MN, WI, IL, IN, MI, OH & KY
6 24 October 2008
7. Proven results with differentiation
CDW and CDW Berbee’s Streamlined Effort: Large Procurement Arm with a Local
•
VAR Flavor
• Gaming Company
− Challenge: Local gaming company expanding facilities was challenged with wireless design,
consulting, and expertise needs.
− Solution: CDW Berbee was able to assess, plan, and design the wireless infrastructure with
expertise and professionalism.
− Results: CDW provided a single point for procurement, knowledge, and service expertise to
build-out the warehouse extension quickly and correctly to exceed the customer’s expectations.
• Laboratory Firm
− Challenge: A Midwest laboratory firm has stretched IT resources to carry-out integration of
immerging IT needs.
− Solution: CDW worked to align the right resources for blade installation, Exchange health
check, and a virtualization assessment.
− Results: CDW provided a single point for procurement, knowledge, and service to extend
our customer’s IT resources with proven and capable expertise.
CDW Services Beyond the Box
•
− Account and technology management and simplification
− Enterprise configuration
− Full solution teams (services)
− Special operations
− Asset Disposition
− Training
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8. Consultative Engineering Expertise
More than 800 Technical Experts
125+ Cisco Engineers
•
− 40 Cisco CCIE’s
− 70 Voice Engineers
− 8 IP Telephony Application Developers
− 30 Security Engineers
− 20 Wireless Engineers
130 Microsoft-Certified Engineers
•
− 30 IW Consultants
− 20 Project Managers
− 50 Core Infrastructure and UC Consultants
CDW Berbee has successfully conducted:
•
− Over 700 IP communications implementations
− Over 500 Security assessments
Over 2,000 Microsoft projects
− Over 5 Petabytes of storage sold/implemented
− Over 12,000 “Open System” servers sold/implemented
− Over $1 billion eCommerce transactions through our data center
8 24 October 2008
9. CDW Value Add: System Engineers
technical experts to provide customized solutions in:
•800
Network Infrastructure
− Network Management, Layer 2-7 switching, Routers
Corporate Security
− Firewalls, VPN, AV, Content filtering, QoS
Power
− UPS (Single Phase and Three Phase), Generators and Power Audits
Storage Architecture
− Powerful relationships with EMC, HP, IBM, LeftHand, Hitachi
Document Management
− Document storing and sharing
Voice & Data
− Master Agent for 21 telecommunications carriers
Telephony
− VoIP and Std PBX
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10. Operational Excellence
Single source supplier option to minimize product acquisition costs
Las Vegas, NV Distribution Center
Vernon Hills, IL Distribution Center
513,000 Square Feet
450,000 Square Feet
Expansive Physical Inventory Powerful Logistics
•
$220 million in-house inventory • Accuracy – 99.7%
•
23-25 annualized inventory turns • Efficiency – 90% within 24 hours
•
100,000 products offered • Quality Assurance – 3 QC Checks
•
Buy and Hold capabilities • ISO: 9001:2000
•
$65-$75 million HP inventory daily
•
10 24 October 2008
11. Secrets to Success
49,000 sq ft configuration center (Two Locations)
•
• Buy and Hold
• Customer Specific Skus
• Asset Tagging & Online Management
• Custom On-site Imaging services
• Image maintenance and secure storage
• Hardware and Software Configuration
• Rack Configuration Services
• Multi-site system deployment
• 24 to 48 hour system burn in
• Ability to customize quality assurance
• Networking Configuration
2,400 systems configured per day
•
ISO 9001:2000 Certified
•
Level 1, 24x7 tech support
•
Powerful extranet
•
• Customer specific pricing
• Purchase Authorization System (PAS)
• Quote to Order Conversion
• Enhanced Order Status Tracking
• Purchase History Reports (up to 3 years of past history)
• Advanced search and competitive compare
• Asset Tag/Serial Number Tracking
• Software License Tracking System
• Reporting by customer
• Cost plus pricing
11 24 October 2008
12. Why CDW is Growing
•Culture has always been built around a superior
customer experience
•Responsive Coverage Model
•Business Partnerships
•Operational Excellence
•Diverse Product Selection
•Business Value and Volume Leverage
•Technical Expertise
•Flexible E-Commerce Solutions
12 24 October 2008
13. HP
CDW is HP’s largest partner in the world
•
HP Revenue $2.1bil
•
HP-IPG shipped over $510 million in 2007
•
$65 million in HP inventory daily
•
HP comprises nearly 30% of CDWs total revenue
•
CDWG claims just under 35% of HPs total CDW revenue
•
In 2007 CDW
•
− Processed over 6M invoices
− Sold over 495,000 HP Desktops
− Sold over 250,000 HP Flat Panels
− Sold over 192,000 HP Notebooks
− Sold over 650,000 HP Printers
13 24 October 2008
14. CDW- HP Resources
14 HP Dedicated Partner Business Managers
•
− IPG, PSG, ISS, SWD, Service, Procurve, etc
21 HP Certified CDW Presales Engineers
•
− IPG: 2 generalist, 2 MFP Specialist, 1 Smart Print Service Specialist,
1 ink/scanner specialist
− PSG: 3 generalist, 1 Workstation Specialist
− ISS: 3 generalist and 1 Blade Specialist
− SWD: 4 generalist
− Care Pack: 2 generalist
5 Marketing Brand Managers
•
• 32 HP Certified Enterprise Storage Engineers
• Partner@cdw.com
14 24 October 2008
15. HP and CDW Supply Chain
• EDI ordering for fast accurate sales credit
• CDW is optimized as an extension of HP Supply
Chain
− Weekly forecasting in place with HP and CDW
• Desktops, Notebooks, and Printers
− Receives Direct Shipments from HP manufacturing
15 24 October 2008
16. Why CDW and HP IPG?
Leverage CDWs relationships (partner@cdw.com)
•
• CDW’s wide customer base in the Midwest region
• CDW logistics: extensive inventory and industry leading
shipping time
• Customized configuration on IPG products: setting IP
address to loading custom configuration for document
management software with MFPs/scanners
• Co-Sponsor HP-CDW customer facing event in Chicago
• CDW’s field alignment, inside and field coverage
• Resources: 6 IPG Specialist
−2 MFP and Solutions Experts
−1 Smart Printing Services Specialist
−2 Generalists
−1 Ink/Scanner Specialist
3 IPG Partner Business Managers
•
16 24 October 2008
17. Everything we do
is to make YOUR customers
experience the best possible!
17 24 October 2008
