September

2015

Newest MeMbersSuppliers• AlbionEngineering• Electrix• MagnoliaBrush

Issue FeaturesP16 Tech TipsP12 Klein

ToolsUpcoming EventsP7 ERB

SafetyP10 P11–

Distributors• BottoHardware• CertifiedProducts• ConstructionEquipment&Supply

P13–

Keeping pace with change is both exhilarating and stressful. The NetPlus team just participated in our strategic planning for 2016 and did some out-of-the-box thinking for our long-range vision. It is a challenge to stretch your mind to think outside of the standard ways that you typically grow your business, and what often limits us is the pressure of ‘the now.’ Worrying about how it will all get done and working too much on the things that come into your workday can hinder you seeing the big picture.

We came up with some interesting ideas and discussed at length afterward how to shape these ideas into long-range plans to develop over the next ten years. The NetPlus Advisory Council will also weigh in on these ideas and give us feedback on how we can improve and grow with you in the coming year.

Our goal at NetPlus Alliance is to always increase your rebate return through new programs, growth opportunities and other incentives from our supplier partners. We also work to minimize operating expenses and bring in additional revenue from marketing and events to offset those costs. We will continue to develop new programs to increase engagement between our distributors and suppliers and provide means for education and training. NetPlus will soon be launching a sales planning program that will enable distributors and suppliers to select each other to establish, execute and measure a plan for growth together.

Summer is winding down, and we are gearing up for a strong finish to 2015. There is still time to attend the NetPlus regional meeting in North Carolina and one of our two remaining training events. For more information about these events, including dates, locations, and brief descriptions, please be sure to check out page 7. Watch for more information on the sales planning program this fall and have a meeting with your team to start your strategic planning for 2016!

-JenniferMurphy,President

P2

TwentyTwenty-Five

2025 – that is ten years from now. Do you

have a vision of where your business will be then?

In the last five years, NetPlus Alliance has undertaken a major overhaul of our company. In that time, we have hired Todd Washburn, Zach Brado, Paul Byrnes, and Kerry Atlas and named Jennifer as president. Our membership profile has also changed with the addition of several large publically-owned distributors, as well as many quality mid-sized companies in the industrial, contractor and safety supplies business.

In mid-August, our full staff of eight met for our annual off-site strategic planning exercise. This was our fourth year using Rick Wallace of Next Level Coaching to facilitate our meeting. As usual, we did our goal setting for next year and decided on some strategies and tactics to reach those goals. As an aside, we have budgeted for a 15% growth in distributor purchases from our partner suppliers in 2016.

But more important than next year, we also set some goals for 2020 and worked on our vision for 2025. This included practical items, like facilities, staffing and technology requirements. As I’m sure some of you have done in planning exercises, we put ourselves ten years out and looked back. Of course, that is a lot of “what-ifs” and “guesstimates” about what the world will look like, especially from the technology standpoint. It’s fun to speculate, but it is also a serious endeavor.

Have you planned for 2025? 2020? Next year? If not, it is time to start. I have been reviewing some of the planning documents our team created in 2002 as we were debating about whether or not to start a buying group. We did a lot of research with numerous “what-ifs” and many forecasting spreadsheets before we launched NetPlus Alliance on September 19, 2002. I’m pleased and proud to say that with that detailed planning and a great team, we have exceeded our projection while retaining our basic model and our core values to guide us.

So this is a great time of the year to do your strategic planning. Get your key staff members off-site and decide where your future takes you. If you have any comments or questions about strategic planning, please contact me at Dan.Judge@netplusalliance.com.

Good luck!

P3

CoNteNtsProto Industrial Tools ...........................................2Chairman’s Column .............................................3Tool Talk ..............................................................4DrillCo Cutting Tools .............................................5DDI System .........................................................6Osborn ................................................................6Upcoming Events .................................................72016 Annual Meeting ..........................................8Legend Valve .......................................................8Robert Bosch Tool Corporation .............................9FeaturedSupplier:ERBSafety ................. 10-11FeaturedSupplier:KleinTools .................. 12-13Florida Pneumatic ..............................................14Distributor Pulse ................................................15Tech Tips ...........................................................16Pull’R Holding ....................................................17Clarus Merchant Services ..................................18JPW Industries ...................................................19Intertape Polymer Group ....................................20PFERD ...............................................................20

septeMber 2015

ChaIrMaN’s ColuMN -by Dan Judge

Chairman & CFO

P4

As the industry’s growth rate seems to be slowing, and companies look for ways

to increase profitability, it’s a good time to review your supplier base for opportunities to consolidate and leverage category spend. I encourage our distributor members to review the supplier programs we have today and pay special attention to the rebate index assigned to each one. Don’t forget to take note of the NetPlus Advantage details that many suppliers offer. I can’t think of any supplier that isn’t eager to gain market share, and I would bet most are willing to offer “extra” incentives to consolidate competitive brands. The best way to realize these benefits is to develop a strong relationship with the supplier. Working together to find new business opportunities for each other, as well as consolidating spend, leads to success.

Take time to consider opportunities to grow your business with these new supplier partners that joined NetPlus Alliance in August.

Since 1929, AlbionEngineering has been a recognized leader in dispensing tools. Albion manufactures high quality caulking guns and accessories for construction and industrial applications. It has tools that can dispense all types of packages: bulk, single cartridge, twin cartridge and sausage packs. The multiple drive options are manual, high thrust manual, air powered and cordless powered. It is a single source for all dispensing needs. The Albion Professional Line is designed for skilled craftsmen using these types of tools on a daily basis. These tools withstand the demanding conditions, like harsh chemicals, wide range of temperatures and tough environments, like construction jobsites. The B-Line tools and the long-established engineering behind them surpass the competition in quality, value and durability. Albion has offered a program package for our members that will make it easy to sell the products and improve a distributor’s

profitability. Check out the details in the NetPlus Member Portal.

For nearly 100 years, MagnoliaBrush has been one of the most recognized brands in the industry. The company was founded in 1907 as Houston Brush Company. The company then moved to the Dallas, TX area in 1918 where the current company name was given. Since its beginnings, product quality, competitive pricing and exceptional customer service have been its reputation and keys to success. Magnolia Brush offers a complete line of maintenance brushes, such as brooms, masonry brushes, deck brushes, counter dusters, mops, paint brushes, squeegees and an endless list of specialty application brushes. You can even source that hard to find pastry brush you’ve been looking for to finally wrap up your kitchen tools collection. If anyone owns a monster backyard grill, you can keep it clean with their 48” Heavy Duty Double Sided Industrial Grill Brush. Magnolia Brush has offered a very competitive program for members, so be sure to give them a look for your customers’ brush needs.

The next time you visit your customer’s manufacturing floor, take a look around for the various task lighting used around machines, in maintenance departments and even in the office areas. Electrix manufactures a wide variety of this type of lighting. If your customer has machining centers and is performing precise manufacturing processes, there are typically task lights around the equipment and inspection areas. If you’re selling this type of lighting to your customers today, you may be sourcing it from one of the large national brands. The NetPlus program allows you to compete directly with the largest catalog and online distributors. There are no barriers to buy product from Electrix. It’s extremely easy to do business with them. This is a great opportunity to sell something different to your current customers and maybe even solve an ergonomic or a safety issue in the facility.

If at any time there are questions regarding any of our supplier partners, their products, or the NetPlus programs, or if you’re simply looking for a source for a specific item, please don’t hesitate to contact me at Todd.Washburn@netplusalliance.com. At NetPlus Alliance, we’re here to bring suppliers and distributors together!

tool talk-by Todd Washburn

VP of Supplier Development

P5 septeMber 2015

P6

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upCoMINg eveNts

P7

Go to www.netplusalliance.com/events for more information

Upcoming EventsSoutheastOctober6Regional Planning MeetingCharlotte, North Carolina

Regional planning meetings allow the opportunity for our local distributors and supplier sales people to engage in 20 minute planning meetings to discuss marketing and opportunities for growth.

Southeast FallSession:October6-8JPW (JET-Powermatic-Wilton) Industries Training Nashville, Tennessee

JET and Wilton would like to invite members of your sales team to the JET and Wilton Training Center. This is an opportunity for members of your team to receive hands-on training with key members of their product teams.

SouthwestNovember8-10STAFDA Annual Convention Phoenix, Arizona

We will be at the Specialty Tools & Fasteners Distributors Association (STAFDA) Annual Convention. Please let us know if you will be attending, and we look forward to seeing you there!

septeMber 2015

P8

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And by using only the highest quality materials, superior workmanship, and keeping our manufacturing as close to home as we can, we’re able uphold those rigorous standards.

Klein isn’t just the name of our company, it’s also our family name, so we have to be proud of everything we make. And since we’re an American company that’s been family-owned and family-run, since 1857, you know you can count on us to be here tomorrow.

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P14

Isoursupplychainchanging?Many of the articles in industry publications today might

lead us to believe that the supply chain is rapidly changing and that someone has the upper hand on our industry. They talk about how the Internet, vending and almost anything non-traditional is challenging how everything is being done. Last week, I read an article asking “Can Amazon ‘Uber’ Distributors?” It questioned if Amazon Business could change the industry by delivering industrial products via Uber. Amazon Business is the replacement for the now-defunct AmazonSupply. Without a doubt, these advancements are changing how some things are being done in our industry – just like they have in our personal lives. But are these advancements changing everything as quickly as the headlines would have us believe, or is it just that the organizations driving the change are providing information to the media more often than traditional distributors?Companies are always working to change the market to favor their strengths. Industry publications will continue to report on what is new, and the companies leading the charge towards change will report the story that sheds light on what they want. For example, UPS has space on most of the industrial websites, stating “72% of buyers would shift spending to distributors with user-friendly websites.” Data is representative of the people involved, but I question if statements like this represent the feelings of all buyers or just the majority of people surveyed who might prefer the Internet to start with. I am not claiming that the UPS statement is false – simply that if you ask those that prefer the Internet, you would get a very large amount of them to say they would like more user-friendly websites. UPS ships a lot of packages for internet sales organizations, and logic would follow that they would benefit if more was purchased via the Internet. So we need to qualify what is being reported and consider the source of that information before we decide that everything is changing.

Assuming not everything will change immediately, then how do traditional distributors leverage their strengths to grow their business? There is plenty of evidence that suggests business will continue being served by traditional distribution. In order to continue to prosper, distributors need to continue to play their own game. Just like most things in life, we should continue to do what has delivered success in the past and strategically plan our future. Traditionaldistributorshavedecadesofsuccessbecausetheybuildrelationshipswiththeircustomersandsuppliers,andthoserelationshipsarebasedonservice,productavailability,on-timedelivery,technicalassistance,breadthofproduct,value-addedservicesandfairness. Some products will be sourced via alternate avenues, but the commercial customers we serve still have the same requirements: they need quality products as they always have, sometimes on short notice, and with product knowledge and support to help solve any issues. Thosethingsdon’talwayshappenviatheInternet,buthavebeentheheartandsoulofthetraditionaldistributor’svaluefordecades. The 2015 Industrial Supply Association (ISA) study clearly indicates distributors that add value will continue to be a vital part of the industrial supply chain.Distributors and suppliers typically desire support and loyalty from each other. It’s a two way street. Consider that all suppliers are charged with growth goals, and the representatives that call on distributors seldom receive credit for non-traditional sales. So if we, as distributors, help suppliers achieve their goals, the supplier relationships, loyalty and support will reflect that combined success. Have you ever noticed that people want to be around successful people? The NetPlus program offers 171 suppliers supporting almost 400 brands, all with growth goals and anxious to help you grow your business.No, the sky is not falling as many of the articles might lead us to believe, but the industry is modernizing, and we, traditional distributors, suppliers and NetPlus Alliance, are all in a position to strengthen our worth in the supply chain by delivering traditional value while strategically planning our future together. That is a beautiful position to be in! If you have any comments or questions, please contact me at Paul.Byrnes@netplusalliance.com.

DIstrIbutor pulse-by Paul Byrnes

VP of Distributor Development

P15 septeMber 2015

P16

As autumn approaches, many of us adopt a back-to-school/back-to-business frame of

mind – even those of us who haven’t been back to school for a very long time. I’d like to invite all of you who haven’t logged into your NetPlus Member Portal lately to come back this week and to get into the habit of checking in at least weekly. Zach has given the Portal a new look and feel, and I know he is working daily to keep the content fresh. There is always something new to discover. If you don’t have a Member Portal login, call Shirley at (716) 438-2014 to get one!Graphic links on your home page take you to our supplier list of all NetPlus product and service suppliers and to the Info Center, which is chock full of supplier literature, pricing and promotional content, and recorded training videos and webinars. You can also click the Upcoming Events image to learn more about the regional meetings, training events and online webinars that are scheduled over the next few months.Speaking of webinars, Shirley Weiland conducted her first two webinar trainings on best reconciliation practices. These sessions were very well attended. If you missed it, there is a recorded session available in the Webinars library in the Info Center, entitled Basic Functions of the Reconciliation Tool. Important takeaways from the webinar include:

•Focus on the one quarter in review.•Check the Last Month In column to see

if the supplier has fully reported the quarter.

•Check the Exclusions and Special Terms columns for explanations of sales differences.

•Consider timing differences, such as supplier reporting by invoice date rather than order date.

•For new suppliers, consider start dates, which can be viewed by hovering your mouse over the supplier name.

•Compare product purchases net of freight and service charges.

•Only contest differences greater than $100.

Within the Member Portal, you will notice that the way we display Supplier Programs has been improved.

•Click on the Supplier Programs tab.•Ensure the Program Detail List is

selected. •Click Go!

We have added more detail to the list of programs, which should help you in evaluating them. For a particular program, click the View Program link, which takes you to a page that assembles what we believe are the key elements you need to fully review a program. This includes information on the product offering, the rebate index, pricing, payment and order terms, and any restrictions on the offering. By looking at this one page, you should be able to make a sound decision on whether a supplier is the right partner for your company.In addition to the NetPlus Supplier List available from the home page link, there is a new interactive version of the list in the NetPlus Toolbox in the Info Center. The interactive version includes all of our suppliers in the same format as the basic list, but enables a distributor to add their logo to the top left of page one. Also, the bottom of the final outside page is reserved for the distributor to add their contact information. The NetPlus Supplier List can then be printed and used as a handout to your customers, showing the lines you can provide with the support of NetPlus Alliance. This feature has been requested by some of our distributor members. Check it out and let us know what you think!We will continue to add relevant and useful features to your Member Portal. One focus over the next few months is to improve search functionality by product category and brand. Watch the monthly e-news and this newsletter for further developments! If you have any questions about navigating the Member Portal, please contact me at Karl.Tschaepe@netplusalliance.com.

teCh tIps-by Karl Tschaepe

Director of Technology

P17 septeMber 2015

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The newest innovation in wood-shop storage has arrived in the form of our Bucket Boss SuperVest. Sturdy DuckWear™ canvas and breathable back mesh allow for comfort and durability. Detachable bottom pockets, front zip closure and padded shoulders add to this remarkably lightweight work vest. With 13 pockets and heavy-duty hammer loop, this is bound to be a fast favorite.

P18

P19 septeMber 2015

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