FIELD VISIT ASSIGNMENT

WESCO Distribution Inc.National Account ProgramIMROZ JAINKAUSTUBH SANZGIRIPARAMASIVAM SANDEEP DAHIYASANDEEP SHARMA

IIMA/L&T, MEP BATCH-6, GROUP-7

BackgroundFounded in 1922, as the distribution arm of WestinghouseChairman Charles AmesThird largest Electrical Equipment Supplier (EES)Revenue of $2.2 billionThree types of Customer base Industrial Customers - $1253 million SalesElectrical Contractors - $ 465 million SalesCommercial / Institutional / Government (CIG) Institutions - $ 148 million SalesProduct orientated market strategy

Nature of ServiceWesco served 3 typs of customers Electrical Customers, Industrial ,Customers

SegmentMarket SizrProduct RequirementCustomer NeedsRelationshipElectricalContractors$ 17.9 BN (2.6%)Lighting and Electrical products for construction projectsDeliver in time with the least possible priceTender BasedIndustrial Customers$ 16.7 BN (6%)EES products for Maintenance repair and operational activitiesOne Stop Solution for MRO needsLong Term & JITCIG Customers$ 5.9 BN (2.5 %)NANAStableWesco : Nature of ChannelWesco has established 279 branches in USMaintains own inventory and own P&L responsibility.Substantial autonomy in its own territory 1/3rd of Branches serves customers of a specific industry1 branch manager, 4 outside sales reps, 4 inside sales reps, 1 warehouse specialist and 1 administrative officerOutside sales reps acquire customers, while inside sales reps ensure their retentionDisadvantage of serving narrower customer base and cooperation between branches is limited

Changing TrendsDuring the late 1980s EES industry witnessed following dramatic change,

Stringent supplier distributer quality norms Customers looking for long term contracts High levels of customer service demandedEffort to minimize procurement costsImplementation of concepts like JIT for procurement To improve Supply chain efficiency by reducing inventory

Value addition to CustomersOffering integrated service systems to customersDevelopment of one stop solution for customerSales & DistributionCustomer SupportInventory Analysis & reduction programmesResponsibility throughout entire value chainStandardize procurement and reduce costsPresence near Customer BaseEnhancing Value Cycle encompassing customers, suppliersAchieving market leadership in EES

Handling Customer TrendsEffectively managing the sales team : Essential for the management as a substantial amount of cost is incurred in maintaining sales work force Proper training is to be given to NAMs and Sales RepsProper coordination of MRO procurement and materials management activitiesLeverage gained through a well-coordinated, national program that delivers:A uniform, competitive price across all locationse-Procurement readiness and leading-edge technologies

Pool in further funds of $12 MnConcentrate on Interested CUSTOMERS onlyIntegrated IT systemkeep a check on branch offices for NA DealsIntegrated Inventory management across all branchesStress on e-procurementEmerging industrial practices (LEAN/JIT)Electronic Procurement with suppliers for reduced transaction costs

Handling Customer Trends

Lighting Audits/Energy Audits for energy savingsConsignment Services for reduction of inventory costsElectronic Procurement for reduced transaction costsBuying Power for uniform competitive pricing at all locationsProxy Distribution Network for reduced supply chain management costsCustomer Inventory Management for increased productivity and reduced maintenanceApplication Engineering for product quality improvementsTraining Services for increased productivity Customer-based activity levels as measured by order processing, delivery and invoicing transactions declinedRestructuring of the distribution network to be done and more number of new branches to be acquired/installedShould also make use e-procurement with suppliers and Online shopping tools for customers to get globally

Future of NA ProgrammeWhat we Recommend CustomerImprove the analysis of Value Added ServicesGo Online for CustomersUnderstand the local resource and goal of CustomerCustomers with good prospect should be approached proactivelyCollaborate with Electrical Contractors Develop expertise to provide integrated solution for different business vertical. Inventory buy back option to customerCheckontheprocurementlist of thecustomersso as to avoid differences in procedures and purchasesStandard products to make initial contracts with the new customers instead of giving them detailed presentation on reduced purchasing cost of employing WESCOs services

Presence near Customer BaseFocus on local distributors rather than national distributorsEnhance Value Cycle encompassing customers, distributors & SKF

Proposed Plan for Industrial AftermarketTHANK YOU