Downloaded 18 times
Uploaded byChannel Marketing Group
Changing Dist Landscape 9.22.11
The document discusses the evolving landscape of the electrical distribution industry, highlighting changes in market dynamics, customer expectations, and competitive pressures. Key trends include a shift from product-centric to customer-centric solutions and the impact of technological advancements on operations and marketing strategies. Additionally, the document emphasizes the importance of effective supplier relationships, succession planning, and the need for distributors to adapt to a rapidly changing environment.
More Related Content
Similar to Changing Dist Landscape 9.22.11
Changing Dist Landscape 9.22.11
- 1. The Changing Landscapeof Distribution
- 2. The Electrical IndustryEvolvesChange takes time, and Sometimes there are Hazards
- 3. Difference in PerceptionDrives ChangeWe See What We Want to See… but Change is OccurringMirror mirroron the wall, who is the fairest of them all?
- 4. Electrical Top 200ElectricalIndustry Evolves…Still ≈3000 DistributorsBut38-40% Belong in Marketing Groups , 25-30% Industry $In 2005 Groups Represented 11% of Distributors & 16% of $Preferred Relationships With 125-150 ManufacturersNational Chains Increased % of Revenue2005 – Top 5 Represented 26% of Industry Sales2010 – Top 5 Represented 28% of Industry Sales2002 – Top 250 Distributors Represented 50% of Sales#250 was $15M2005 – Top 200 Represented 60.5% of Market# 200 was $30M2010 – Top 200 Represented 56% of Market#200 was $15M
- 5. What is DrivingChange?Recession After AffectsConstruction OutlookIndustry Over CapacityCustomer Needs“E” for Information & EntreeLack of SuccessionInvestment NeedsNon-Traditional CompetitorsTax Codes & Incentives
- 6. From GraybarWhat wouldyou consider to be the biggest changes you’ve seen the industry face throughout your career thus far?The biggest change I’ve seen is going on right now. It’s no longer just about products - it’s about listening to customers and focusing on solutions that increase their profitability and help them achieve their long-term goals. We look at current conditions as a tremendous opportunity to demonstrate our value in the supply chain and how we work to our customers’ advantage.Bill MansfieldVP Industrial & CommercialInterview with Industrial Distribution magazine
- 7. A Bakers DozenConvergingGenerational Issues Size Captures Market ShareDiversification of Business / Market SegmentsManaging Sales DifferentlyInternetVertical Marketing / SellingRole of SalesOrchestra leaders & Account Managers vs Sales & “Milk Runs”Specialists – Market Segment / ApplicationServices / Solutions FocusCommunicating Your Message, Identifying Markets, Understanding the Customer … MarketingSupplier Relations vs. Purchasing / BuyingOperationsTechnology Applications & Improved Inventory ManagementAccess to CapitalTax Issues
- 8. Acquisition IssuesRecession RealitiesComing to LightBusiness OutlookLack of DiversificationTechnology Investments Generational IssuesQuick Opportunities for GrowthIES to SoneparYale (PA) CEDCity (IA) to 3EHD Supply Electrical Canada to SESCO (Sonepar)Heintz to SpringfieldTeknikor to Horizon SolutionsKey to ElliottTreadway to ElliottBroken Arrow Branches to CrescentCentral Wholesale to AlamedaMidstate (VT) to NESCOAVAD to GraybarD&D Tool to OneSourceRECO to WESCOTVC to WESCOEMSCO to ShealyHD Supply HVAC to HajocaEDI to Shealy
- 9. Customer IssuesLess Time,More to DoProduct Costs ComparableMore Companies Selling The Same ThingDistributors & Manufacturers … Less DifferentiationAt Times Transactional, At Times SolutionFocus On Business IssuesResponsible for MoreInformation EatersDo Business Differently
- 10. SalesType of SalespeopleOrderTakers, Account Managers, Solution ProvidersManagementRole of RelationshipsProducts vs. Solutions = ValueSales, Marketing & Training EngagementPrice Management ≠SellingRole of CRMData Analytics
- 11. MarketingCustomer InsightIntegral toStrategy DevelopmentBrand ManagementBeyond Promotions & CommunicationsInvolved with Supplier Relations & PurchasingRoles of MarketingNowWasCategory Management
- 12.
- 13.
- 14.
- 15.
- 16.
- 17.
- 18.
- 19.
- 20.
- 21.
- 22.
- 23.
- 24.
- 25.
- 26.
- 27.
- 28. CatalogsInternallyCall CenterseStore /eCatalogCRMCategory Management ToolsMobility & TelephonyVoIP, iChat, Remote Monitoring, Knowledge DatabaseSocial CommunicationsIntranetRDC / CDC’sERP SystemPeople Management SystemsEDI / VMIWireless Warehouse / DispatchingeInvoicing / ePaymentInventory ManagementSystemsPrice ManagementAn Explosion of TechnologyNeed Low Cost to Serve / Invoice
- 29.
- 30.
- 31. Staff that CanManage Technology & Multi-Task
- 32. Invest for Success…LetTechnology Drive ProcessesSupplier RelationsPurchasing ≠ Supplier RelationsAutomate Transactional PurchasingFocus on Business DriversMeasure Performance & ProfitabilityAsk Yourself, And Them … What is Their Distribution Strategy – Today & TomorrowLevel of RelationshipThe Whole PackageProduct, Support, Field Resources, Commitment
- 33. Serving Different DistributorsDifferentlyFocusNicheAcceleratorsLimited Geographic
- 34. One / FewMarket Segment
- 35. Product Specialist orService Specialist
- 36.
- 37.
- 38.
- 39.
- 40.
- 41.
- 42.
- 43.
- 44. Range of Value-AddedServices
- 45.
- 46.
- 47.
- 48.
- 49.
- 50.
- 51.
- 52. Succession May BeQuestion
- 53.
- 54. One / FewMarket Segment
- 55. “One Arm PaperHanger”
- 56.
- 57.
- 58.
- 59.
- 60. As a ManufacturerAsa DistributorWhere Do I Want My Company to Be Tomorrow?How Should I Deploy My Resources to Support My Customers
- 61. For More Informationon How Channel Marketing Group Can Help You, Contact:David Gordon919-488-8635dgordon@channelmkt.comVisit Our Industry BlogVisit Our Websitewww.electricaltrends.comwww.channelmkt.com