netplus exchange january 2015

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January 2015 It has been an amazing year, and I would like to thank you for playing an important role in the growth and success of NetPlus Alliance. Your support and loyalty to the group are what motivate our team to develop opportunities that deliver real and increasing value. In 2014, we were a force to be reckoned with, as we are on track to have the biggest year in NetPlus history. Driving engagement between NetPlus distributors and suppliers played a major role in our success, as we facilitated over 3,000 face-to-face meetings at the Annual and Regional meetings. Last year, 30 members added between 2 and 8 new lines with NetPlus suppliers that resulted in $4 million in new business. In addition, we have added 21 new members in the last 18 months whose combined purchases in 2014 account for over $7 million. Our growth outperforms the industry average by a large margin, and it is the power of many that will continue to propel us toward strong and solid gains in 2015. NetPlus Alliance has some new programs that we are really excited about. We are grateful for our distributor and supplier advisory councils, who provide feedback so we make sure to do the right things right. More information will be coming through direct mail and email, but here is a sneak peek: Three powerhouse programs will be effective January 1: Milwaukee Electric Tool, PHD and MarginPoint. Todd Washburn, our VP of Supplier Development, will continue to work on developing new programs. Check out his article on page 5. Education opportunities are expanding this year, and we currently have five hands-on trainings scheduled in 2015. Visit netplusalliance.com/events/calendar to view the full schedule. Points Plus is a new program that uses a point system to track your participation in the group, and the NetPlus Member Portal will track the points and your progress. I look forward to seeing you at the 2015 Annual Meeting on April 12 – 14, where we will align for another phenomenal year at NetPlus Alliance! – Jennifer Murphy, President NEWEST MEMBERS Suppliers Big Wipes Dentec Safety Specialists MarginPoint Milwaukee Electric Tool PHD Manufacturing ISSUE FEATURES JPW Industries - P 8 P 9 Tool Talk P 5 Annual Meeting Testimonial P 10 Distributors Gamco Services of Gastonia, NC Steelcore Industrial of Spartanburg, SC

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NetPlus Alliance Newsletter, NetPlus Exchange January 2015.

TRANSCRIPT

Page 1: NetPlus Exchange January 2015

January

2015

It has been an amazing year, and I would like to thank you for playing an important role in the growth and success of NetPlus Alliance. Your support and loyalty to the group are what motivate our team to develop opportunities that deliver real and increasing value.

In 2014, we were a force to be reckoned with, as we are on track to have the biggest year in NetPlus history. Driving engagement between NetPlus distributors and suppliers played a major role in our success, as we facilitated over 3,000 face-to-face meetings at the Annual and Regional meetings. Last year, 30 members added between 2 and 8 new lines with NetPlus suppliers that resulted in $4 million in new business. In addition, we have added 21 new members in the last 18 months whose combined purchases in 2014 account for over $7 million. Our growth outperforms the industry average by a large margin, and it is the power of many that will continue to propel us toward strong and solid gains in 2015.

NetPlus Alliance has some new programs that we are really excited about. We are grateful for our distributor and supplier advisory councils, who provide feedback so we make sure to do the right things right. More information will be coming through direct mail and email, but here is a sneak peek:

• Three powerhouse programs will be effective January 1: Milwaukee Electric Tool, PHD and MarginPoint. Todd Washburn, our VP of Supplier Development, will continue to work on developing new programs. Check out his article on page 5.

•Education opportunities are expanding this year, and we currently have five hands-on trainings scheduled in 2015. Visit netplusalliance.com/events/calendar to view the full schedule.

•Points Plus is a new program that uses a point system to track your participation in the group, and the NetPlus Member Portal will track the points and your progress.

I look forward to seeing you at the 2015 Annual Meeting on April 12 – 14, where we will align for another phenomenal year at NetPlus Alliance!

– Jennifer Murphy, President

Newest MeMbersSuppliers• Big Wipes• Dentec Safety Specialists

• MarginPoint• Milwaukee Electric Tool• PHD Manufacturing

Issue FeaturesJPW Industries-P8 P9Tool TalkP5 Annual Meeting TestimonialP10

Distributors• Gamco Services of Gastonia, NC• Steelcore Industrial of Spartanburg, SC

Page 2: NetPlus Exchange January 2015

the NetPlus exchaNgeP2

Page 3: NetPlus Exchange January 2015

As you will recall from earlier articles, NetPlus Alliance embarked on a strategic planning process over

three years ago. That’s not to say we didn’t do any planning the first ten years we were in business, but it was not as structured and was more ‘ad hoc’ and reactionary.

Jennifer and I knew that in order to do this properly we needed an outside coordinator/facilitator. There are many national accounting and consulting firms you can hire to do this, but I’m afraid what you get from them is a ‘canned’ process and a big bill. We decided to hire a local consultant, Rick Wallace, who Jen met through her Center for Entrepreneurial Leadership program at the University at Buffalo. You may remember Rick from his presentation at last year’s annual meeting. Rick has a strong corporate background in management,

marketing, sales, product management, and training at two Fortune 1000 companies. After an early retirement, he started his own strategic planning practice. While I would recommend him to anyone, the point here is that you will be better served with a local, independent, knowledgeable, and flexible consultant than someone from a large firm.

We knew that a successful planning process would not only set our direction for the future but also provide us with a framework for refining our planning on a regular basis. What we did not want was to end up with a fancy binder with lots of tabs and many grandiose statements that just ended up on a shelf somewhere. It was also important that we have everyone involved. Our staff is small (i.e., there are only seven of us), so we not only needed everyone’s input; we also needed their commitment to executing the final product.

As you will do in your planning exercises, we did a SWOT analysis, developed our core purpose and core values, and built a list of strategic actions. For NetPlus Alliance, this entire process was a real game changer. As a result, we now have supplier and distributor advisory councils, an annual meeting, regional planning events, enhanced technology and communication, and a well-rounded team. And, most importantly, we have a structure for both annual and quarterly updates to our process. We bring Rick back every year and go off-site to review our process and plan for the next year. Each quarter, we meet internally to develop our ‘rocks’ or goals for the next three months, and every Friday, we have a weekly ‘huddle’ to review everyone’s ‘rocks’ dashboard to determine who needs help accomplishing their goals.

If your company has never had a strategic plan or if it is stale, it’s time to set that process in motion. Do some local networking to find the right person to work with, take time away from your business to do the planning, and be sure to develop a living document that you can refer to everyday. Do that and you will see remarkable changes in your company. If you have any questions or comments about how to get started or the strategic planning process in general, please feel free to contact me at [email protected]. Good luck!

coNteNtsProto Industrial ....................................................2

Chairman’s Column .............................................3

Carborundum ......................................................4

Louisville Ladder ..................................................4

Tool Talk ..............................................................5

Drillco .................................................................6

ERB Safety ..........................................................7

Featured Supplier: JPW Industries ............... 8-9

Annual Meeting Member Testimonial ..................10

Florida Pneumatic ..............................................10

2015 Annual Meeting ........................................11

C.H. Hanson ......................................................12

Distributor Pulse ................................................13

Brighton-Best .....................................................14

DDI System .......................................................14

Alfa Tools ..........................................................15

M.K. Morse .......................................... Back Cover

Bosch .................................................. Back Cover

JaNuary 2015P3

chaIrMaN’s coluMN -by Dan Judge

Chairman & CFO

Page 4: NetPlus Exchange January 2015

the NetPlus exchaNgeP4

Page 5: NetPlus Exchange January 2015

You can count on NetPlus Alliance to continue to grow together with our distributor members and

supplier partners. To keep things rolling, we’re excited to launch several new supplier programs in January 2015. Some are well recognized industry leaders while some are probably new names to many of you. Each one has a strong value proposition for our distributor members and can help you grow your business and improve profitability.

We’re pleased to announce that we’re re-launching a program with Milwaukee Electric Tool. Leaders in cordless power tool innovation, Milwaukee offers NetPlus distributors the opportunity to compete with lower minimum volume requirements. New authorized distributors can buy in to the Heavy Duty program at a lower initial investment. Check out the Member Portal for program details. Don’t forget that Milwaukee has introduced over 200 different hand tool items. These tools have unique features that differentiate them from the competition and make a tradesman’s job more efficient. All this along with their lineups of test and measurement equipment and tool accessories gives Milwaukee the broadest selections available for contractors and industrial end users.

Are you looking for an innovative vending and indirect materials management solutions provider? MarginPoint offers a broad spectrum of storeroom management software, mobile solutions and industrial vending cabinets, and software can help a distributor compete at any level. NetPlus distributors can take advantage of the discounted price structure in addition to earning year end rebates for utilizing any of their services.

PHD Manufacturing is an Ohio-based USA manufacturer of pipe hangers, beam clamps, roller supports and related devices for the plumbing, mechanical, fire and electrical

industries. They also offer a complete line of strut and fittings. PHD is renowned for their exceptional service. They offer NetPlus a competitive pricing position that allows you to sell a domestic product against import competition.

The new face of US Safety is Dentec Safety Specialists Corp. They have acquired the Comfort-Air respirator brand of US Safety. Dentec Safety Specialists offers NetPlus members a very unique opportunity to sell the highest quality and complete lineup of respiratory protection in the market today at a price point that is incredibly competitive. The respirators are the most comfortable on the market. A low initial stock buy for a new distributor locks you into the best net price for one year. This is a great way to grow your safety business with a well-known, USA made brand that is known for quality.

Sycamore USA, Inc. is a market-leading wipes specialist. Their Big Wipes brand is designed for maximum cleaning flexibility with a long list of applications. Variations include Industrial Wipes, Industrial+ Wipes with dual-sided scrub fabric, Industrial Bio Wipes made from biodegradable fabric and formula, and automotive wipes used to clean everything from your dash to exterior to mirrors and glass. Their products are very competitive with other major industry brands in buckets yet have numerous advantages compared to the competition when it comes to product features.

Be sure to refer to the NetPlus Member Portal for details on each of these supplier programs, including terms and conditions, key contacts and for some, NetPlus member pricing. Now is also a great time for distributors to take a few minutes to review your year-to-date purchases in the portal. If we can catch any reconciliation issues now before the final reports come in early 2015, we can wrap up the final process much quicker and get those rebate checks out sooner!

We continue to review numerous supplier program opportunities, and I expect that we will be able to announce a few more new suppliers in early 2015. We want to continue to offer the best selection of top name industry brands that support our diverse distributor member base. If you have any questions about any of these new supplier programs, please feel free to contact me at [email protected].

tool talk-by Todd Washburn

VP of Supplier Development

JaNuary 2015P5

Page 6: NetPlus Exchange January 2015

the NetPlus exchaNgeP6

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Net Plus Reamer Ad Q4 2014.pdf 1 03/09/2014 2:24:58 PM

Page 7: NetPlus Exchange January 2015

HEAD PROTECTION

ERB Safety | 1 Safety Way, Woodstock, GA 30188 | 800.800.6522www.e-erb.com | [email protected]

ERB Safety, an industry leader in the development, testing and manufacturing of safety helmets for over 40 years.

• Low order minimums• Full hard hat line• Logo imprinting and customization• Drop ship program

MADE IN USA

JaNuary 2015P7

Page 8: NetPlus Exchange January 2015

the NetPlus exchaNgeP8

Featured suPPlIer

THE POWER OF TRAINING

IQ PERFORMANCE TRAINING DELIVERING RESULTS...Last November, JPW announced the

opening of their 6,000 square foot training

facility in LaVergne, Tennessee. Through

this facility, JPW has been able to fulfill one

of their initiatives to support and educate

their distributors and sales force.

The attendees work through a three-day

program covering Machinery Basics,

Terminology, Machinery Selling Tips, and

Qualifying Questions for Metalworking

machinery. JPW’s facility also offers training

on JET Lifting Systems, JET Air Tools, and

WILTON Working Holding Equipment.

The results have been overwhelmingly

positive. JPW’s training facility has

successfully completed 16 classes with an

average of 12 attendees per class in the

first year of operation.

HOW SUCCESSFUL IS IQ PERFORMANCE TRAINING?After attendees complete the training, their first

month sales increase by 80% and average

out to be over a 30% increase through the

next six months.

Currently, eleven members of NetPlus have

attended two classes and seen an increase

in their sales of 89%. JPW plans to continue

to offer more training in 2015 staying

committed to their promise to support and

educate their partners.

NEXT TRAINING FOR NETPLUS: June 9th – 11th, 2015

INCREASE YOUR KNOWLEDGE AND SALES, SIGN UP TODAY! Contact Terri Eshelman for More Information.

P. 615.287.5865

F. 615.287.1565

E. [email protected]

©2014 JPW Industries All Rights Reserved.

Page 9: NetPlus Exchange January 2015

JPw INdustrIes

THE POWER OF TRAINING

IQ PERFORMANCE TRAINING DELIVERING RESULTS...Last November, JPW announced the

opening of their 6,000 square foot training

facility in LaVergne, Tennessee. Through

this facility, JPW has been able to fulfill one

of their initiatives to support and educate

their distributors and sales force.

The attendees work through a three-day

program covering Machinery Basics,

Terminology, Machinery Selling Tips, and

Qualifying Questions for Metalworking

machinery. JPW’s facility also offers training

on JET Lifting Systems, JET Air Tools, and

WILTON Working Holding Equipment.

The results have been overwhelmingly

positive. JPW’s training facility has

successfully completed 16 classes with an

average of 12 attendees per class in the

first year of operation.

HOW SUCCESSFUL IS IQ PERFORMANCE TRAINING?After attendees complete the training, their first

month sales increase by 80% and average

out to be over a 30% increase through the

next six months.

Currently, eleven members of NetPlus have

attended two classes and seen an increase

in their sales of 89%. JPW plans to continue

to offer more training in 2015 staying

committed to their promise to support and

educate their partners.

NEXT TRAINING FOR NETPLUS: June 9th – 11th, 2015

INCREASE YOUR KNOWLEDGE AND SALES, SIGN UP TODAY! Contact Terri Eshelman for More Information.

P. 615.287.5865

F. 615.287.1565

E. [email protected]

©2014 JPW Industries All Rights Reserved.

JaNuary 2015P9

Page 10: NetPlus Exchange January 2015

Florida Pneumatic

Florida Pneumatic Mfg Corp-FPMC ispleased to announce the merger ofExhaust Technologies Inc. (AIRCATc)to its portfolio of businesses effectiveJuly 1, 2014.

FPMC has produced pneumatic toolsand associated products for Automotive and Industrial marketssince 1964. The merger includes theExhaust Technologies’ brands of “AIRCAT®” and “NITROCAT®” and itsbreak through patented SILENCINGTECHNOLOGY. The merged companyplans to maintain its commitment to product quality, innovation, high service levels, and to further developand expand the “AIRCAT®” and “NITROCAT®” brands.

The companies new “AutomotiveBusiness Unit” will develop, marketand supply AIRCAT®, NITROCAT® and

Florida Pneumatic brand products andwill operate from Florida PneumaticMfg Corp HQ & Distribution Center, located in Jupiter, FL.

For AIRCAT® and Florida Pneumaticcustomers the merged company will provide a wider selection of products; while delivering cost effective sourcing solutions for its distribution partners.

FPMC also produces the Universal AirTool brand for the Industrial Market.The addition of the AIRCAT® and NITROCAT® brands underlines the corporation’s long term commitmentto its core “Air Tool Business”

Brands You Know

from a Company

You Trust

Florida Pneumatic announces merger withExhaust Technologies (AIRCAT®)

Florida Pneumatic Mfg Corporation

851 Jupiter Park Lane, Jupiter, FL 33458

(800) 356-3392(561) 744-9500

F L O R I D A - P N E U M A T I C . C O MA I R C A T . C O M

From

Mfg CorpAIRCAT®

Latest Innovation

1250-K

08TS_14FloridaSpd 7/17/14 9:56 AM Page 1

the NetPlus exchaNgeP 10

Several years ago we were looking for an answer to help us support our growing business with direct relationships with new vendors. After never being very confident we were getting competitive pricing out of the gate we decided there had to be a better way. We spoke with several buying groups and found NetPlus fit our business the best as we very much wanted to maintain a direct vendor relationship for orders, invoices, etc. We also wanted to know we were going to have competitive pricing, additional training opportunities and access to any special programs.

We attended the NetPlus Annual Meeting last year and found it to be even more productive than we had anticipated. Having attended many industry specific trade shows over the years this one allowed for us to specifically tailor the list of vendors we wanted to speak with, sprinkled in with a few that wanted to speak with us. The amount of time allotted for each conversation

was just enough to accomplish everything we wanted, which typically you’re not going to have standing in a booth at your standard trade show. For the most part we also felt like we were really talking to the right people (either national or regional sales managers) who could actually help us grow our business.

Since joining NetPlus we have added almost exclusively (NetPlus) partner vendors, strengthened our relationships with existing NetPlus vendors and in several cases switched out non-member vendors for those within the group. Looking forward we are very happy to see many of the programs get even stronger and key new vendors getting added. We anticipate the 2015 Annual Meeting to be even better than last year but of course it’s not all work, we look forward to seeing a lot of familiar faces again soon!          

– Jay Amstutz, Ohio Power

Tool

MeMber testIMoNIal

Page 11: NetPlus Exchange January 2015

2015 Annual Meeting

April 12 - 14, 2015

The M Resort, Las Vegas, NV

4/12: Complimentary Golf Outing - Golf, Lunch & Prizes Included Opening Party @ Lux Rooftop Restaurant

4/13: One-on-One Meetings with NetPlus SuppliersTraining Sessions

Happy Hour with Live Band

4/14: Keynote Speaker One-on-One Meetings

Late Afternoon Departure

Register online at www.netplusalliance.com/events/annual-meeting

AGENDA

JaNuary 2015P11

Page 12: NetPlus Exchange January 2015

A NEW FAMILY OF PRODUCTS FROM A NAME YOU CAN TRUSTFor 95 years, Palmgren has been a

trusted brand name for work holding,

positioning, and machine tools.

Palmgren, now backed by 148 year

strong C.H. Hanson is delivered with

unmatched customer service, fill rates,

and order fulfillment. C.H. Hanson is

actively expanding the Palmgren line

including CNC machine vises, clamps,

band and miter saws, and more.

Be sure to visit our website at

chhanson.com and give us a call at

800- 827-3398 for the brand new

Palmgren catalog.

the NetPlus exchaNgeP 12

Page 13: NetPlus Exchange January 2015

Help suppliers reach their goals, and they will provide you with more attention

and better rewards. Rewards from results.

In business, the bottom line or the end results are often what measures our success. As your buying group, one of the ways we measure our success is by total group purchases each year. Unlike many other businesses, our goal is to pay out more money in the form of increased rebates to our distributors based on their purchases. There are many important components to the supplier programs, but total group purchases and total rebate paid out are easily measured parts of the programs. Perform above the industry, and we should expect improved rewards.

Our goals include activities to continue to increase engagement, training, number of suppliers leveraged, percent of spend within the group, new suppliers, and enhanced supplier programs. When achieved, these goals deliver more purchases through the group and ultimately, a higher rebate paid out to our distributors. The increased results that help suppliers reach their revenue goals are the reward our supplier partners seek. As President Jennifer Murphy mentioned in her cover story, NetPlus Alliance is performing well, and our growth exceeds the industry average by a large margin. Our results have helped our suppliers reach their goals and in return, allowed the group to receive increased rewards and pay out larger rebates year after year.

Suppliers continue to be excited to be part of NetPlus Alliance, and there is a constant inquiry of quality, prospective suppliers desiring to be part of our group.

That said, we continue to round out categories with new suppliers while at the same time working to not overcrowd categories, as this is a founding principle of the group. Continuing to provide our supplier partners with the results they need is fundamental to their continued investment in us as a group. They will invest more time planning and working to grow revenue with members that provide them with results. The growth we have provided has afforded the group the opportunity to improve 39 existing supplier programs and add 32 new suppliers to round out categories over the past two years, taking the total to 153 suppliers representing 274 brands. Today, 45% of our programs now include growth rebate opportunities in addition to the base rebates – all because together as a group we delivered.

At the end of each year, I like to schedule time to review what has worked or not worked, so I can do more of what has worked and adapt or do less of what has not worked. The formula to continue our success should include more of what has worked:

• Attend the NetPlus Alliance Annual Meeting

• Increase purchases within the group

• Increase number of NetPlus suppliers

• Attend supplier trainings

• Be a NetPlus advocate

• Attend a regional meeting

• Build a growth strategy with NetPlus suppliers

Thank you for your increased participation in the NetPlus Alliance program, increasing your purchases, attending the Annual meeting, regional meetings, and training sessions, and ultimately, allowing us to be able to pay out increased rebates! If you have any questions or comments about how your company can get rewards from results, please feel free to contact me at [email protected].

dIstrIbutor Pulse-by Paul Byrnes

VP of Distributor Development

JaNuary 2015P13

Page 14: NetPlus Exchange January 2015

the NetPlus exchaNgeP 14

It’s Time to Jumpstart 2015

Visit DDISys.com:

• See Technology Innovations

• Download a Free Brochure

• Read Customer Reviews

• Schedule a Demonstration

Call 877-599-4334 | ddisys.com | [email protected] | @ddisys

NetPlus Alliance members are choosing DDI’s Inform ERP software. Gain the automation, accuracy & flexibility you need to streamline your business. Inform’s industry specific features maximize profitability and help you grow.

• Improve Customer Service

• Create Your Competitive Advantage

• Make Faster, Smarter Decisions

• Increase Your Bottom Line

Act Now!

BBI products and services offered exclusively through distribution ©2014 Brighton-Best International, Inc.

Metric Products

• DIN 125A Flat Washer 200HV Plain (BBI # 248) • DIN 125A Flat Washer 140HV Zinc Yellow (BBI # 250) • Hex Weld Nut DIN 929 Plain (BBI # 416) • Hex Domed Acorn Nuts DIN 1587 Class 6 Zinc CR+3 (BBI # 417) • Hex Nuts Class 8 DIN 934 Zinc Yellow (BBI # 522) • Class 8 Hex Flange Locknut Metric Coarse Zinc CR+3 DIN 6927 (BBI # 523) • DIN 127B Split Lock Washers Thru Hardened Plain (BBI # 744)

• Metric Sockets

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Page 15: NetPlus Exchange January 2015

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Fax: 847-470-9696 [email protected]/national

Abrasives Catalog 15ABR

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JaNuary 2015P15

Page 16: NetPlus Exchange January 2015

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