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HD Supply: No More Divestments

ISA MEMBER EXTRA: STRATEGIC SALES MANAGEMENT
It’s no longer enough to leave relationships solely in the hands of individual sales reps, no matter how capable they are. Becoming a strategic partner in the supply chain means evolving to a new model of sales management. Read the Article

After reading your weekly ISA news, scroll past the yellow section for your weekly distribution industry news update and features.

KICK OFF CONFERENCE EXPERIENCE WITH PHILIP GULLEY
An Emmy Award-winning writer, humorist and inspirational speaker, Gulley will kick off Sunday morning with an uplifting message focused on his latest book, "Porch Talk," a collection of heart-warming stories from real-life situations that offers musings on leisure, marriage, faith, family and enjoying the little things.

This will be a program you will not want to miss. For more information on the opportunities available to you at the event or to register, go to www.isaconference.org or click here. Contact ISA at info@isapartners.org or call 215-320-3862 for more information.

ORDER NOW: TRANSFORMING YOUR SALES FORCE FOR THE 21ST CENTURY
Distribution companies should be sales-oriented, but many distributors don't do sales well. That's the premise behind this book written for sales managers and executives in the wholesale distribution industry. This book provides a blueprint to transform sales forces into highly directable, effective and focused performers. Click here to order the book from NAW today or for more information.

2008 PROFIT SURVEY: THE BEST SOURCE FOR FINANCIAL BENCHMARKING

  • FREE - One of the most valuable member services you receive is the opportunity to participate in the Profit Report.
  • EASY - Simply fill out the operational questions on the survey and attach a copy of your income statement and balance sheet and send it to the Profit Planning Group.
  • VALUE-ADDED BONUS – Dr. Al Bates, the Profit Planning Group, has agreed to SPEAK with any member participant free of charge for up to 15 minutes, on any topic of concern. Your company must participate in the 2008 Profit Report to be eligible for this free consultation.
  • Click here to participate in the 2008 Profit Survey.

    The ISA eBusiness Committee announces availability of the ISA eBusiness Implementation Guideline. Click here for more information.

    ISA CALENDAR OF EVENTS

  • April 18: Deadline to receive ISA Conference & Trade Fair Early Bird Registration Fees and to be listed in the printed conference program. The program will be mailed in advance.
  • April 15: Profit Report - Deadline to Participate
  • May 21: How to Find and Keep the Right Employees … Without Stealing from the Competition Webinar Details
  • June 1-3: ISA Industrial Supply Conference & Trade Fair, Chicago, IL Details
  • Sept. 10: Developing an Inventory State of Mind Webinar
  • Nov. 19-20: Save the Date: ISA EBusiness Conference
  • Dec. 2: The Telephone Doctor Webinar
    For more information on upcoming ISA events, go to isapartners.org.

    ADDING COLLEAGUES TO ISA ADVISOR
    Send name, title, email address and company name of each colleague to info@mdm.com. Only employees of ISA member companies will be added to the list to receive this weekly association update.

  • THE VALUE OF INTERNET TRADING NETWORKS
    Discover the Secret. Activant has been called the quiet giant when it comes to providing software to distributors. Learn the history of this growing company and find out why partnering with Activant could help advance your business. Read more in this article from Electrical Wholesaling. Read More.

    MDM NEWS UPDATE: April 3, 2008
    (Click headline to view)

    Strategy

    MDM BLOG: HD SUPPLY CEO – NO MORE DIVESTMENTS
    HD Supply CEO Joe DeAngelo recently spoke with MDM Editor Lindsay Young about HD Supply post-Home Depot (full interview in next issue of MDM, April 10). She came away with the feeling that HD Supply was back (if it was ever gone) and ready to move forward as a leaner, more focused organization. DeAngelo told MDM that the company was finished selling off pieces of the business – it sold its lumber and building materials business to ProBuild – and plans to go back on the acquisition trail, specifically in its specialty construction, facilities maintenance, utilities and waterworks businesses.

    In the interview, DeAngelo also addressed the company's vision under private equity ownership, its private label plans – it will have two – and the potential for growth through green. More...

    Related Articles from MDM
    HD Supply Waterworks Acquires D&M Fabrication

    SUPPLY CHAIN INNOVATIONS: EXECUTIVE KIT
    Distribution industry expert, Dr. Adam Fein shares the four main topics of his acclaimed book Facing the Forces of Change: Lead the Way in the Supply Chain in this compilation of articles.

    Click here to download IBM's executive kit for strategic insight and innovations for your supply chain.

    M&A

    REXEL CEO ON THE HAGEMEYER DEAL
    Now that Rexel has completed its purchase of Dutch electrical distributor Hagemeyer NV, the next step in the deal – to sell Hagemeyer's North American, Asian-Pacific and some European assets to competitor Sonepar – will take place in the next six months, Rexel CEO Jean-Charles Pauze said in an online video interview. Pauze said the combination of Rexel and Hagemeyer is "historic." "Not only are we reinforcing our position worldwide, but we are becoming a very strong No. 2 in Europe and a true challenger."

    "We will be more resilient," Pauze said, "because of the geographic spread, end-market spread, and because we are increasing our share of the renovation and maintenance business." Europe, he says, now represents nearly 60% of Rexel's overall sales, while before the Hagemeyer deal it represented 45%. The company adds three countries in the Baltics, Finland, Norway and adds significant strength in the UK and Spain. The company also becomes No. 2 in Germany, Pauze says. More...

    Related Articles from MDM
    Rexel Now Owns Nearly 99% of Hagemeyer

    WHAT ARE THE BENCHMARKS FOR SUCCESS IN DISTRIBUTION?


    A successful benchmarking effort begins with an understanding of common performance metrics. The Annual Census of Distribution conducted by the MPI Group identifies current performance levels for key technologies and processes—from radio-frequency identification (RFID) to Six Sigma—in distribution centers and warehouse operations. Learn how savvy distributors are using benchmark metrics and adopting best practices to stay one step ahead of the competition. Click here to read the Annual Distribution Executive Summary.

    Case Study

    PROBUILD PUSHES ON WITH ACQUISITIONS, DESPITE HOUSING SLUMP
    You might not know there was a housing slump by watching ProBuild Holdings, a Denver, CO-based entity that comprises lumberyards and other building products businesses. The nearly two-year-old private equity-owned ProBuild was built from more than 120 acquisitions, in fact, according to this feature in the Rocky Mountain News. ProBuild has more than $5 billion in annual sales, and plans to keep on a brisk acquisition pace.

    "It's been much more logical to find good companies in markets we want to enter, rather than open green-field companies, creating another competitor, and taking the years it takes to learn the customers and the markets," says one ProBuild executive. One of ProBuild's biggest acquisitions to date was HD Supply's lumber and building materials unit, sold after Home Depot spun off HD Supply last year. More...

    BOOST YOUR GROWTH PLANS WITH LAWSON DISTRIBUTION
    Lawson Knows Growth in Distribution. Do you know Lawson? Lawson is a global provider of software and services specifically tailored for the distribution sector. Lawson is also an IBM Premier Business Partner. Our goal is to arm you with the knowledge and tools necessary to grow your company. The right technology solution can be the key to achieving your growth goals.

    Visit www.lawson.com/growth3 to learn more about Lawson and our IBM partnership!

    China

    IS CHINA'S COMPETITIVE ADVANTAGE DISAPPEARING?
    Many manufacturers moved to producing in China because of low wages, minimal regulation and cheap currency. Things are starting to change. This article from BusinessWeek asks: "Are the days of cheap labor in China gone?" Factors cited include a lower demand for everything from Chinese-made bedroom sets and fixtures due to the U.S. housing slump; rising commodity and energy prices and the removal of preferential policies for exporters; and the appreciation of the Chinese currency, significantly shrinking margins.

    Another article on China online: Getting Over China, an excerpt from "The China Price: The True Cost of Chinese Competitive Advantage," as printed at forbes.com. More...

    PRIVATE PASSWORD TO EXTRA PROFITS
    An exclusive, secure website for "Distributors Only" has been introduced by PFERD. Many distributors have already found it to be a goldmine of inside information giving them regular email news, stock level checks, price change alerts, new products and services announcements, cross reference guides and advance notice of special promotions. All PFERD distributors have to do to get in on this is to ask for a personal password. If you're not a PFERD distributor, ask about becoming one. This proven resource is an ongoing service, updated daily and it brings rapid response with every request.

    Click to PFERD now.

    Technology

    WOLSELEY REPLACING LEGACY SYSTEMS WITH COMMON TECHNOLOGY PLATFORM
    Global building materials and plumbing/HVAC distributor Wolseley plc told Computerworld UK recently that a common technology platform is critical in today's down housing markets. The company is currently implementing an SAP ERP system, High Jump warehouse management software and Oracle Peoplesoft HR software throughout the company, which spreads through Europe and in the U.S. and Canada.

    This year, Wolseley focuses on rolling out SAP in its U.S. divisions – Ferguson and Stock Building Supply – next year, it's the UK. The plan is to complete the project in the company's 28 markets by 2011. Wolseley CIO Rod Angwin told Computerworld that the distributor's growth by acquisition has resulted in a "complex array of legacy systems that needed to be rationalized." Said Angwin: “They are all good legacy systems with relevance in each market, but we had to look at new ways of doing things.” More...

    ESCAPING THE PRICE-DRIVEN SALE
    Do your salespeople complain that every important sale is being decided on price alone? Are they repeatedly cutting margins to make the sale, even when they know they have the superior offeringMany customers use price objections like a bludgeon. They beat up your sales reps on price, hoping they’ll cave in. Too often, they do, unaware that the customer would NOT have abandoned the sale if they’d stood firm on price and focused on value, which is what customers REALLY care about.

    Order the CD of this recent webcast...

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    ABOUT ISA ADVISOR

    ISA Advisor is a weekly news and industry update provided as a member service of the Industrial Supply Association. More information about ISA member benefits and services is available at the web site of the Industrial Supply Association.

    ISA Advisor is published weekly by Gale Media, Inc., publisher of Modern Distribution Management, on behalf of the Industrial Supply Association. 100 North 20th Street, 4th Floor, Philadelphia, PA 19103. All rights reserved. To unsubscribe from this e-mail newsletter, please use the links below.