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Sonepar's Plans for Hagemeyer

ISA MEMBER EXTRA – BRUCE MERRIFIELD ON INNOVATION
In an MDM-sponsored audio conference, distribution consultant Bruce Merrfield discussed innovation management for distributors. This article provides excerpts of that presentation. More...

After reading your weekly ISA news, don't forget to read your weekly distribution news and trends update following the yellow section of this email.

CONFERENCE SESSION: ALAN BEAULIEU SPEAKS ON WHAT'S NEXT FOR THE ECONOMY
At the conference's awards program on Tuesday, Alan Beaulieu, a senior analyst, economist and principal of the Institute for Trend Research, will take a look at what is happening in the economy in nine key customer segments. This is a presentation you cannot afford to miss! Beaulieu has been consulting and advising companies throughout the U.S., Europe and Japan on how to plan for and prosper through the business cycle. Beaulieu compiles the Economic Outlook Report (details below) for ISA. Click here for more information on this and other sessions in the educational portion of the ISA Conference and Trade Fair in Chicago. Register for the ISA Conference and Trade Fair here.

ISA ECONOMIC OUTLOOK REPORT: APRIL 2008
The ISA Economic Outlook Report details the industrial production outlook, focusing on major macroeconomic indicators and the current business cycle. ISA members can use the report to learn how end-user industries are performing. ISA members can also chart their business trajectory with regard to the Conference Board's Leading Indicators, the Institute for Supply Management's Purchasing Managers Index (PMI), EcoTrends Leading Indicator, corporate bond prices, U.S. money supply, retail sales, housing starts and industrial production. The report is put together by Alan Beaulieu of the Institute for Trend Research (ITR), who will be speaking at the Industrial Supply Conference and Trade Fair in June. Read the report here. ISA member username and password required.

WEBINAR, MAY 21: FINDING & KEEPING THE RIGHT EMPLOYEES WITHOUT STEALING FROM THE COMPETITION
Distributors spend about half their gross margin dollars on employee wages and benefits, yet they rarely invest a commensurate amount of time and energy on selecting and retaining them. This seminar is an examination of practices that may be working against your organization rather than for it. Click here for more information. Register here.

BUY NOW: Distributor Executive's Guide to the Art of Top-Quartile Financial Performance — Volume 3
Volume 3 of this series on financial success provides practical advice to wholesale distribution decision-makers about how to apply financial concepts. The goal is to help you reach and maintain top-quartile return-on-investment results year after year, especially during the current economic climate. As a member of ISA, you receive the "Member of NAW Association" price. Order by clicking here.

LAST CALL: 2008 PROFIT SURVEY – SURVEY MUST BE IN BY MAY 12
Participation is FREE and EASY too! Simply fill out the top part of the questionnaire and attach a copy of your latest balance sheet and income statement. FAX your completed information to the Profit Planning Group at (303) 444-9245. To download a copy of the survey click here.

SAVE THE DATE: UNIVERSITY OF INDUSTRIAL DISTRIBUTION, DEC. 2-5, 2008
The second session for UID in 2008 will be held in Indianapolis, IN. More information and details on how to register will be available in Summer 2008. Questions? Call 410-263-1014.

ISA CALENDAR OF EVENTS

  • 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
  • Dec. 2-5: University of Industrial Distribution
    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.

    • Sponsored Announcement

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    MDM NEWS UPDATE: May 8, 2008
    (Click headline to view)

    MDM BLOG: SONEPAR'S PLANS FOR HAGEMEYER
    Sonepar USA plans to approach the integration of Hagemeyer's U.S. assets much like it does any other company it acquires, CEO Tony Burr tells MDM in a recent interview. "It has a different customer base, predominantly, and a different culture," he says. Sonepar has not yet acquired Dutch electrical distributor Hagemeyer's assets in North America, Asia-Pacific and select European markets from Paris-based Rexel, but the plan is to do so before the end of the year.

    Sonepar's strategy is to leave acquired companies' trading names and management in place; with this operating structure, the distributor recognizes that distribution is largely a local business and that it is important to cater to local needs. "We don't go in and swallow the business," Burr says. "We support what's already in place. We look at building on the best and maybe getting rid of the worst." More...

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    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

    MDM BLOG: NIGHT & DAY FOR M&A
    MDM Publisher Tom Gale writes about his recent call with the three panelists who will be on the third annual MDM Distribution M&A 2008 Update Webcast on May 22 – Brent Grover, Jim Miller and Jon Skelly. They all described how radically things have changed in less than 12 months in merger and acquisition activity in distribution. Strategic buyers are competitive once again with financial buyers; pricing has dropped significantly; debt markets have tightened; and the bar has been raised for buyers and sellers.

    The panelists noted that what "good" looks like is different this year. For buyers, the current environment is not one for "fixer-uppers." The business looking to sell has to be a high performer and clean to pass muster. Well-run distribution businesses are marketable, and can still command a healthy price as there is competition, as always, for Class A businesses. More...

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    MDM Archives

    LESSONS FROM THE PAST: SELLING SERVICES WHEN NOBODY HAS MONEY TO SPEND – July 25, 2003
    Many successful service providers have found that a focus on sales, service design and development, finance, service delivery and quality assurance is fundamental. Spend a day thinking about each of these aspects and how you can improve your service business. In a tough year, distributors should take the opportunity to analyze their value proposition to customers.

    Author Todd Youngblood says; "By keeping this 'handful' of sub-processes in mind, along with a methodical customer focus, you can stay a step or two ahead of the competition." More...

    Related Articles from MDM
    MDM BLOG: Managing the Loss of Sales in a Down Economy

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    Forecast

    ISM SEMIANNUAL FORECAST: MANUFACTURING GROWTH 'MARGINAL' IN 2008
    Here's an overview of the latest semiannual forecast from the Institute for Supply Management:

  • Manufacturing Growth Marginal in 2008
  • Revenue to Increase 1%
  • Capital Investment to Increase 1%
  • Capacity Utilization at 78.6%
  • Non-Manufacturing Growth Sustainable in 2008
  • Revenue to Increase 2.7%
  • Capital Investment to Decrease 2.7%
  • Capacity Utilization at 85.9%

    While 42% of manufacturing respondents to the survey predict revenues to be 9.2% greater in 2008 than in 2007, the overall expected revenue increase is only 1% for manufacturing as 31% expect a 9.3% decline, and 27% expect no change. With operating capacity at 78.6%, expected capital investment growth at 1% and prices expected to increase 8.5% during 2008, manufacturers will need to focus on cost cutting to offset lower revenue growth and higher input prices. More...

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    PARTICIPATE IN AN SAP FINANCE BENCHMARKING SURVEY.
    You’ll have the opportunity to compare your company’s performance to other companies, rank your own practices, and learn how other organizations manage their finance operations. This will give you insights into how far you have to go to achieve your goals for financial excellence.

    Follow this link to access the survey, then select the Abbreviated Finance Survey (under Corporate Services).

    • Economy

    WE MAY BE IN FOR THE LONG HAUL
    This Wall Street Journal article contends "the economic pain could just be starting." The article suggests we need to look to history to see that financial markets typically hit bottom before the economy does. "The financial crisis is usually an expression of broader problems in the economy," Harvard University economist Kenneth Rogoff tells WSJ. "It's a mechanism that exacerbates and deepens the recession, but it's seldom the trigger."

    One economist says that the U.S. financial system has adjusted only to the losses on mortgage loans, but a wave of defaults on industrial loans, municipal bonds and consumer credit is coming – triggering yet another wave of financial-system distress. The economy will contract as customers adjust to lost wealth and reduced access to credit, the author writes. Subscription to WSJ required. More...

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