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November 10, 2005
The Extended Value Index
How to measure a distributor’s value-added capability
By William R. McCleave, Jr., P.E. & Thomas P. Gale
The way customers define value added in the marketplace keeps shifting as they gain more knowledge and control of sourcing options. Distributors that want to serve the needs of these customers must evaluate two components of what it means to be a successful value-added supplier: 1) the capabilities to perform additional services beyond traditional distribution functions, and 2) the ability to demonstrate those value-added capabilities. This article provides a method to analyze a company’s relative competitive position based on these value-added components.
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