WHAT OUR AUDIENCE SAID

• Bricks and Clicks

  Customers want distributors to work with them seamlessly across multiple communication interfaces.

• Coordinated Channels

  Customers seek more information directly from manufacturers.

• Unbundled Supply Chain

  Customers and manufacturers pay for only the specific supply chain and marketing channel activities they require.

• Common Platform

  Groups of large customers form open and neutral nonprofit online exchanges.

  Marks described how Adam Fein, Ph.D., and the Pembroke Consulting Group, authors of the study, researched the field of manufacturers, distributors and their customers to arrive at these scenarios. He offered more in-depth description of the particular characteristics of each scenario, and engaged the audience in a series of questions relative to the plumbing and PVF industries.

Using hand-held, wireless devices, the audience was able to provide instant feedback to the questions, thus making the study's findings immediately relevant. Of the 200-plus people in attendance, 100 devices were distributed, and using the technology, the first question determined that the mix of respondents was 58% wholesalers, 27% manufacturers, and 15% other, including manufacturers representatives.

These graphs reveal some of the interesting findings determined as a result of the audience's participation. They represent the total audience response; an even more interesting perspective is found when breaking down the response by audience segment.

A summary of all the questions that Marks posed during his presentation, along with the audience response statistics, is available on the Indian River website, www.ircg.com. Look under "Download Presentations," and type in the password "password" (without the quotation marks).

The complete "Facing the Forces of Change, Future Scenarios for Wholesale Distribution" report is now available from NAW. Accompanying products include a workbook and video. ASA members may purchase these products from NAW at reduced prices. In addition, a 5% discount is available for orders placed on-line. For more information, visit www.nawpubs.org .

ASA IN 2002

They stressed that although ASA is comprised of member companies that range in size from those doing less than $1 million a year in sales to those with sales in excess of $3 billion, and includes distributors, manufacturers and independent reps, that ASA will serve all of its members. The association remains committed to improving the channel of distribution, and making the industry stronger and more profitable for everyone in it.

A focused approach in three key areas will be pursued, including advancement of technology and standards, education, and continued representation with federal lawmakers and regulators.

Maloney and Hester encouraged all ASA members to make themselves aware of what the association offers, and stated that maximum value of membership can only be derived through active participation.

A NEW STRATEGIC PLAN

For ASA to remain a viable resource for its members, it needs to have a plan in place to address these changes on behalf of the industry, and to find ways to continue to take advantage of the critical mass that it represents.

A Quick Thumbnail

The beginning of 2002 will find ASA to be a much leaner organization, from a staff and governance standpoint, than it has been in its 33-year history. The headquarters staff (ASA and the Foundation) is now comprised of 12 professionals, down from a high of almost 20 a few years ago. The Center for Advancing Technology (including Source ASA) employs only four.

The Board of Directors (comprised of delegates representing regional groups and special interest divisions) is down from 32 to 23, and meetings are being reengineered to make them more productive and less intrusive on volunteers' time. Whenever possible, committee and task force meetings are held via conference call, and email has made communication among volunteer leaders quite time- and cost-effective.

MEMBERSHIP PROFILE

A large percentage of members are small- to mid-sized firms ($1- to $25- million annual sales), while the larger companies with expanded regional or national scopes (annual sales in the billions of dollars) also are participating members.

There are 210 associate member companies, which are manufacturers, master distributors or service providers (such as computer software firms), and in its first year of offering the manufacturers representative membership category, ASA welcomed 24 independent rep firms.

For information about membership, contact ASA at 312-464-0090 or email info@asa.net.

INDUSTRY DATABASE

"In looking at the Source ASA program, it's clearly an excellent catalog program for wholesalers to use in their sales and proposal departments," says Hester. "But the overwhelming number of distributors we talked to have told us that what they most urgently need right now is a database with UPC codes, current prices and product detail information. They want UPC codes so they can cross-reference their parts and get into EDI and VMI, and they want List Price so they can have a simplified way of handling updates from a single source. Many also want weights, measures and so forth to help with automated warehousing applications and central distribution."

To this end, a task force will be charged with determining how the data that is currently already a part of Source ASA can also be utilized and built-upon to form the basis of this new repository, tentatively known as "Source Data." At issue are a number of not-so-small details, not the least of which is how ASA members (wholesalers and manufacturers) can fund the development and ongoing maintenance of this repository.

It's widely known that the electrical industry has spent millions of dollars putting its database together, but most experts agree that the PHCP industry, by working together, can do it for much less. Already, ASA has invested almost $1 million in the Center for Advancing Technology and its efforts to bring new technologies into an industry seeking to reduce costs and protect margins.

Ultimately, a model is being sought that provides for this database where costs are shared by trading partners throughout the industry.

WHAT LIES AHEAD

New research will be conducted to better identify and respond to member needs, and a new program on the basics of profitable distribution will be developed for entry level management and customer service employees.

The Foundation also committed to enhancing the EF website by providing storefront and training capabilities.

EARLY IDM DISCOUNTS

2001 CONVENTION GLIMPSE

The "Welcome to Vegas" Opening Party, expanded this year to 2 hours, included plenty of food, drinks and camaraderie. On hand to welcome participants to ASA's Las Vegas bash was a roving band of Elvis impersonators. This photo proves that Elvis truly has not left the building!

Jack Hester, President of F.W. Webb Company, Burlington, Mass., accepts the symbol of ASA's Presidency from Don Maloney, President of Coburn Supply Company, Beaumont, Tx. Hester will formally begin his term on January 1. Both teamed up during the "State of the Industry" program to offer a peek into ASA's industry agenda for 2002.

Bob Jarvie, formerly ASA's Sales and Show Director, received a recognition award from the Midwest Distributors Association, who honored his contributions to their organization. Jarvie left the ASA and MDA staffs in October to join the sales team of Messe Frankfurt, Inc., producers of ISH North America. He'd been with ASA for the past 14 years.

Education Foundation

At the convention, the Foundation hosted its 2nd annual Human Resource Session with a panel of experts from ASA member wholesalers sharing their insights on recruiting, retaining, motivating and training employees.

In a concurrent session, John Carroll of Unlimited Performance shared the wisdom, benefits and techniques of using open-book management to build a company of business literate employees who can take your operation to the next level. Participants gave the packed session excellent reviews. Incidentally, John will share his expertise in a full day seminar at the Foundation's Institute of Distribution Management 2002 in Indianapolis on March 24-27.

In the sales management workshop, Larry Laufer of the Towson University Sales Institute demonstrated the dozen things customers do to take charge of a sales call and the techniques salespeople can use to regain and keep control of the call.

On Friday, Beltech, Inc. presented a 5-hour condensed version of their Branch Manager Training Course. Participants learned the Traits of the Successful Manager, Branch Operations Best Practices and Critical Human Resource Policies. All participants received a workbook summarizing the key points of the program.

Looking forward to next year in Toronto, the Foundation will continue to work shoulder to shoulder with ASA to provide a first class business conference experience to the ASA convention participants.

Links

• Indian River Web Site
• NAW
• ASAEF