industry research solutions - industrial distribution · combined best practices best practices by...

Industry rEsEarch sOlutIOns

Industrial Distribution ProgramDwIght Look CoLLege of engIneerIng

A DVA N C I N G T H E S C I E N C E O F D I S T R I B U T I O N

the texas A&M AdvantageFor 60 years the Industrial Distribution Program has been providing

the industry with cutting-edge research solutions.

Texas A&M Global Supply Chain Laboratory is the nation’s premier distribution research lab. We bring

cutting-edge distribution and supply chain research solutions to the industry. We transform companies by

creating competitive advantage and by facilitating change management. The lab offers total solutions for

companies by providing research expertise, education and implementation support.

aPPlIEd rEsEarch

Creating Competitive Advantage

GRADUATE PROGRAM

Developing DistributionLeaders

CONTINUING EDUCATIONEnabling Branch-Line

Managers

UNDERGRADUATE PROGRAMEducating Future

Employees

Training Future Leaders

Knowledge Creation

Knowledge Dissemination

G LO B A L S U P P LY C H A I N L A B O R ATO RY

New Industry Needs

Research Solutions 3

why Choose texas A&M?

Project area client - line of tradeclient

revenue

Project OutcomeInventory Reduction /

Re-deploymentService Level Improvement

Operating Cost Reduction

Gross Margin Improvement

Optimizing distributor Profitability

Wireless $ 1.2 Billion Strategic Business Assessment identified TOP 3 initiatives (similar to following projects) for optimal profitability.Building Materials $ 1 Billion

Paper and Chemical $ 350 MM

Electrical and Industrial $ 175 MM

Chemical $ 200 MM

Inventory stratification

Pipe, Valve and Fitting $ 1 Billion 12% 7%

Metals $ 1 Billion 17%

Oil and Gas Equipment $ 1 Billion 20% 6%

Paper $ 220 MM 10% 3%

Hardware $ 125 MM 35% 3%

Fluid Power Products $ 125 MM 33% 8%

Building Materials $ 80 MM 22% 4%

Building Materials $ 1.2 Billion 24%

Chemical $ 125 MM 33%

Building Materials $ 120 MM 20%

HVAC $ 250 MM 5%

network Optimization

Metals $ 1 Billion 15%

Building Materials $ 500 MM 20% 6% 10%

Auto Component $ 500 MM 33%

Automotive $ 4 Billion The study identified strategic locations for optimal distribution network.

Cutting Tool $ 300 MM

customer stratification and/Or Pricing Optimization

Industrial $ 750 MM 2.9% (Projected)

HVAC $ 500 MM 6.8%

Electronics $ 400 MM 1.2%

Fluid Power Products $ 190 MM 3.1%

Electrical $ 175 MM 2.7% (Projected)

Outdoor Power Equipment $ 75 MM 1.5%

Container $ 65 MM 3.4%

Metals and Building Materials $ 50 MM Implementation in progress and pilot location results range from 2 - 4% gross margin improvement.Building Materials $ 80 MM

Hardware $ 75 MM

Paper $ 100 MM

HVAC $ 80 MM

Building Materials $ 1 Billion

Industrial Automation $ 145 MM

Building Materials $ 120 MM

Building Materials $ 150 MM

Propane Equipment $ 40 MM

Gases and Welding $ 100 MM

supplier stratification HVAC $ 400 MM Supplier Rationalization and Preferred Vendor List Creation

Auto Component $ 250 MM 15%

O U R C A P A B I L I T I e S>> Applied Research and Proven Methods>> Actionable Results>> Industry-focused Education>> Better Value for Investment

Y O U R B e N e f I T S>> Gain Competitive Advantage>> Improve Profitability>> Maximize Asset Efficiency>> Develop New Capabilities

Research Solutions4

Channels we work In

AUTOMOTIVe

HVAC/PLUMBING

eLeCTRONICS

PAPeR

CHeMICAL

HeALTHCARe

INDUSTRIAL/PVf

MeTALS

fOOD

POWeR TRANSMISSION

eLeCTRICAL

BUILDING MATeRIALS


MeTALS

Sample Clients and Partners

Research Solutions6

optimizing Distributor Profitability

P R O G R A M O V e R V I e W

•Wheredoyourbusinessprocessesstand against best practices?

•Howdoesyourfinancialperformance compare against cross-channel benchmarks?

•Howarebusinessprocesseslinkedto shareholder value?

•Whatisthepotentialprofitabilitya distributor can achieve through best practices?

•Whatarethebestpracticesandhowto implement them across your firm?

K e Y T A K e - A W A Y S

•Provenandstructuredapproach to assess your business performance (Process & Profitability)

•Cross-channel financial benchmarks

•Comprehensivedistributorprofitability framework explaining process– shareholder value link

•Easytounderstandspreadsheettools that can be readily used

•Detailedroadmapexplainingthe best practice implementation know-how

M e T H O D O L O G Y

PROCESSASSESSMENT

GAPIDENTIFICATION

PROFITABILITYANALYZER

SHAREHOLDER VALUE MAP

BEST PRACTICESROADMAP

1

2

3

4

5

“Thanks for the helpful

insight and providing

tools to lead my

company into future

profitability growth.”

- Bob Borsh, Principal, SDJ Ventures, LLC


Optimizing Distributor Profitability: The Five-step Methodology 31

cess. EBITDA and ROI were the key metrics across most distributors. Many distribution associations also bench-mark companies based on some of the metrics shown in exhibit 3-7.

Exhibit 3-8 shows the same sample cross-channel finan-cial benchmarking report we used in chapter 2 (exhibit 2-17). You can use this to evaluate the 13 key financial metrics for your firm. Your values can be compared against these cross-channel numbers to identify financial strengths and opportunities for your company. You can use the exhibit by filling in your firm’s numbers under the “your values” column and then benchmarking against the industry that best applies to you. Your goals can be entered in the “action items” column.

This dual due diligence—both in terms of process and finance—highlights the strengths and challenges in a business, especially the process gaps. As a logical next step, we need to link these process gaps to understand the impact of improved processes on the organization’s financial drivers and, in turn, shareholder value. Distribu-tors need to understand the financial impact of their deci-sion when deciding to move from a common to a good or best practice.

Link to Shareholder Value

Having identified business process gaps, you must understand the importance of those gaps by linking the corresponding business processes to shareholder value. Though many times the process assessment happens in the business environment in various forms such as audit-ing, the key challenge is in understanding the impact of those process gaps on profitability. The following think-

Distribution Business ProcessesAssessment

Common Good Best Not Applicable

S1 Source

1.1 Supplier Management

1.1.1 supplier selection

1.1.2 supplier Performance Assessment

1.1.3 supplier stratification

1.1.4 supplier Relationship strategy

1.1.5 Right number of suppliers

S2 Stock

2.1 Inventory Stratification

2.1.1 Inventory stratification

2.2 Forecasting

2.2.1 What to forecast?

2.2.2 Demand Classification

2.2.3 Forecasting Methods

2.3 Replenishment

2.3.1 When to Order? (reorder point—ROP)

2.3.2 How Much to Order? (order quantity)

2.3.3 Replenishment Policy

Exhibit 3-6. sample process assessment report; also known as the “dot report.”

Free Cash Flow8%

Net Profit %18%

Profit Before Interest and Tax $/%1%

Net Operating Profit $2%

Potential Business from Customer6%

ROI/Return-on-operating-assets (ROOA)35%

EBITDA29%

Exhibit 3-7. Financial metrics that drive decision making.

Source: Texas A&M University, Optimizing Distributor Profitability Survey, 2007

Custom Process Assessment Report

P R O f I T A B I L I T Y T O O L K I T

Business Processes Process Metrics Finance Elements Financial Drivers

DISTRIBUTOR PROFITABILITY FRAMEWORKLinking Business Processes and Shareholder Value

STORE

SELL

SHIP

SUPPLYCHAIN

PLANNING

SUPPORTSERVICES

SOURCE

STOCK

Gross Margin

Days Payable Outstanding

Cash-To-Cash Cycle Time

Working Capital

Inventory Turnover

GMROII

Total Asset Turnover

Revenue Growth

Cash-To-Cash Cycle Time

Working Capital

Inventory Turnover

GMROII


Revenue Growth

Gross Margin

BUSINES

S

PROCESSES

SHAREHOLDER

VALUE

http://supplychain.tamu.edu© 2008 Supply Chain Systems Laboratory, Texas A&M University

SHAREHOLDER VALUE

GROWTH PROFITABILITY ASSETEFFICIENCY

CASHFLOW

BUSINESSPROCESSES

FINANCIALDRIVERS

SOURCE STOCK STORE SELL SHIP

SUPPLY CHAIN PLANNING

SUPPORT SERVICES

Days Sales Outstanding

Gross Margin


Revenue Growth

EBITDA

Supplier Management(Strategic Sourcing)

Fleet Management

Dispatch Management

3PL / Carrier Management

Customer Order Fulfillment

Sales Management

Pricing Management

Marketing Management

Warehouse Fulfillment (Inbound)

Warehouse Management

Inventory Management

Supply Chain Optimization

Information Technology

Finance Management

Human Resource Management

Product ReceivingProduct Put-Away

Product PlacementLocation TypeLocation IdentificationProduct Storage

Cycle Counting

Sales Force StratificationMapping Customers & Sales Force

Customer StratificationCost To Serve AssessmentNew Customer Identification

Pricing Optimization

Voice Of CustomerNew Product Introduction Market Selection & Target StrategyCustomer Portfolio Management

Fleet Capacity ManagementFleet Cost Assessment

Routing OptimizationLoading Optimization

Carrier Selection & Performance

Product PickingOrder Delivery

New Facility Location

Network OptimizationResource & Asset Alignment(Supplier - Inventory - Customer)Service Level Optimization

System Integration

Credit Management

Training & Development

Recruitment & RetentionCompensation Design

Total Landed Cost

Payment Terms

Quality & Flexibility

Lead Time & Variability

Fill Rate

Growth Potential

Data Integrity

Invoice Accuracy

Past Due Tracking Efficiency

Training Effectiveness (Benefit-To-Cost Ratio)

Time & Cost To Hire

Retention Rate

Accuracy & Efficiency

Space Utilization

Item & Location Accuracy

Sales Force Mix

Customer Mix

Cost-To-Serve & Right Price

Time-To-Market

Qualified Leads Per Marketing Activity

Asset Utilization

On-Time Delivery

Accuracy & Efficiency

Cost Of Goods Sold

Accounts Payable

Inventory

Revenue

Inventory

Revenue

Cost Of Goods Sold

Accounts Receivable

Revenue

Marketing Expenses (Payroll, Promotion, Media)

Fixed Assets (Payroll, Promotion, Media)

Transportation Expenses

Warehouse Payroll

Revenue

GROWTH

PROFITABILITY

CASH FLOW


Working Capital

Inventory Turnover

EBITDA

Revenue Growth

Working Capital

Days Sales Outstanding

Account Receivable Turnover

EBITDA

Revenue Growth

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

Supplier SelectionSupplier PerformanceSupplier StratificationSupplier Relationship

Inventory Stratification

What to Forecast?Demand ClassificationForecasting Method

When to Order? (Re-Order Point)How much to Order? (Order Quantity)Replenishment Policy

Inventory Mix

Forecast Accuracy

Fill Rate

Total Landed Cost

Revenue

Warehouse Payroll

Warehouse Rent

Inventory Write-Off


Revenue Growth

EBITDA


EBITDA

Revenue Growth

Fixed Assets (Plant, Property, Equipment)

Inventory

Operating Expenses (Transportation & Warehouse)

Revenue

Inventory

Accounts Receivable

Additional IT Expenses

Bad Debt (Write-Offs)

Hiring & Training Cost

Revenue

Optimal Network Location

Optimal Resource Deployment

Optimal Service Level

5.20%

9.32%

7.17%

11.41%

10.29%

11.52%

Impact of Best Practices on EBITDA (Typical Distributor)All business processes — SOURCE, STOCK, SELL, STORE, SHIP

Sourceand

Stock Sell

StoreandShip MIN MAX

Combined BestPractices

Best Practicesby Business Processes

BaseCase

“Delivered the tools we can use to

optimize shareholder value.

A picture is worth a 1,000 words

and A&M’s Distributor Profitability

Framework chart is worth a

100,000 words!”

- Ron Cedruly, CFO, Henrietta Building Supplies

Research Solutions8

Inventory Stratification

C H A L L e N G e S S O L U T I O N S B e N e f I T S

•Misalignedinventory investment •Criticalstockouts•Excessive‘C’&‘D’ inventory•SKUproliferation

•Multiplecriteria stratification - Profitability - Logistics - Criticality - Custom criteria•Combinationinventory stratification

•Right-sizeinventory investments•Manageitem-level profitability•MaximizeyourROI on inventory•Balancecustomerservice•Reduceobsolescence

S T R A T I f I C A T I O N M O D e L

INVENTORY MOVEMENT

INV

EN

TO

RY

PR

OF

ITA

BIL

ITY

A

B

C

D

“Through knowledge learned from

the inventory management program,

attended by all our management

and key salespersons, we have

reduced our total inventory

levels by over 20%”

-Brent A. Burns, Building Materials Distributor


I N V e N T O R Y S T R A T I f I C A T I O N B e S T P R A C T I C e S

A

B

C

D

STOCK FOR HIGH FILL RATE

STOCK FOR MEDIUM FILL RATE

STOCK SUPPLIER MINIMUM

CONSOLIDATE/ LIQUIDATE

S A M P L e I N V e N T O R Y A N A L Y S I S (Typical Inventory Mix)

100%

80%

60%

40%

20%

0%AVG. INV ($) TOTAL SALES ($) TOTAL GM ($)

DCBANEW

$14.5 MM

$8.5 MM

$10.3 MM

$3.7 MM

$4.3 MM

$41.3 MM

$16.3 MM

$23.3 MM

$ 54.4 MM

$81.3 MM

$12.8 MM

$188.1 MM

$5.1 MM

$5.2 MM

$10.3 MM

$16.7 MM

$2.3 MM

$39.6 MM

“We collaborated with Texas A&M on an inventory stratification project which has resulted in a successful

classification of our inventory based on item level profitability. We have already seen a significant reduction in capital

employed and expect to benefit from further decreases.” -KevinC.Reid,VicePresident,StrategicProcurementatCopperandBrassSales,ThyssenKruppMaterials,N.A.

Research Solutions10

Customer Stratification


•MisalignedSalesForce Deployment•HighCost-to-Serve(CTS)•HighCustomerAttrition•Underpricingor cost-plus pricing

•MultiCriteria Stratification - Buying Power - Profitability - Loyalty - Cost-to-Serve•CombinationCustomer Stratification

•OptimalSalesForce Deployment•ImprovedNetMargins•HighCustomerRetention•CompetitiveValue Proposition

High profitabilityNo relationshipLow cost to serveLow volume

High profitabilitySustained relationshipLow cost to serveHigh volume

Low profitabilityNo relationshipHigh cost to serveLow volume

Low profitabilitySustained relationshipHigh cost to serveHigh volume

Customer Loyalty (Life)

Customer Buying Power

Cus

tom

er P

rofi

tabi

lity C

ost to Serve

OPPORTUNISTIC CUSTOMERS

CORE CUSTOMERS

SERVICE DRAIN CUSTOMERS

MARGINAL CUSTOMERS

S T R A T I f I C A T I O N M e T H O D O L O G Y


“‘Customer Stratification’ has the

power to enable us to transform

our company from being product-driven

to customer-driven. It has helped us

understand our customers in greater

detail, enabling us to optimize

our selling resources, which will

result in an improved ROI.”

-Don Schalk, President and COO, C.H. Briggs Company

Category Factor UnitofMeasure Available Quantifiable Reliable Common Factor

Finance Average days to pay Days

Freight/transportation costs by customer Dollars

Customer specific inventory requirement Dollars

Operations Average order size Dollars

C & D items accessed Percentage

Quote conversion ratio Percentage

Same day deliveries required Percentage

sales Number of sales calls Number

Time spent with customer Minutes/Hours

Sales expenses by customer Dollars

C O S T T O S e R V e ( C T S ) f A C T O R S

“We have found the information from the customer stratification model to be very useful, pragmatic, and quickly

applicable into our business. We have realized some early wins and anticipate a greater positive impact in our business.”

- ArtKostaras,President(Past),WomackMachineSupplyCompany

S A M P L e R e S U L T S


CORE CUSTOMERS


MARGINAL CUSTOMERS

a

B

c

dd c B a

NET

PRO

FIT

CUSTOMERLIFETIMEVALUE(CLV)

19 7

31 12

403 86

251 129

10 24

21 36

44 33

15 22


Supplier Stratification


•Sub-optimalChannel Investment•MisalignedChannel Compensation•SubjectivePerformance Analysis•LackofChannelLoyalty

•MultiCriteria Stratification - Supply Chain Performance - Financial Performance - Strategic Alignment•CombinationSupplier Stratification

•AnalyticsDrivenProcess•AlignedChannel Profitability•ImprovedCustomer Service•Focused Channel Investment•Optimal Channel Proposition

“The information is organized very well,

supported by robust research specifically

on the distribution industry, presented

in an easily digestible manner, and

linked to real-world examples to help

convert concepts into actionable items.”

-David A. Larson, Vice President–Operations, DW Distribution Inc.

“Linking customer stratification to our supplier and inventory systems

empowers our team to quickly distill the variables affecting risk and reward

so they can make better and more profitable business decisions.”

-Frank Flynn, President, Sager Electronics

S T R A T I f I C A T I O N M e T H O D O L O G Y

FINANCIAL PERFORMANCE

Su

PP

LY C

hA

IN P

ER

FO

RM

AN

CE

SeRVICe DRIVeRS

VALUe DRAINeRS

VALUe DRIVeRS

VOLUMe DRIVeRS

Strate

gic Ali

gnment


channEl alIGnMEnt

R O I O N S U P P L I e R S T R A T I f I C A T I O N

INVENTORY MOVEMENT

INV

EN

TO

RY

PR

OF

ITA

BIL

ITY

A

B

C

D

High profitabilityNo relationshipLow cost to serveLow volume

High profitabilitySustained relationshipLow cost to serveHigh volume

Low profitabilityNo relationshipHigh cost to serveLow volume

Low profitabilitySustained relationshipHigh cost to serveHigh volume

Customer Loyalty (Life)

Customer Buying Power

Cus

tom

er P

rofi

tabi

lity C

ost to Serve


CORE CUSTOMERS


MARGINAL CUSTOMERS

EBITDAP&L and BalanceSheet

RONA GMROII Turns

Re-invest?

Basic Input Parameters

Additional Revenue

Lead Time Variability

Expected Turns

Safety Stock

% of Re- investment

Average Inventory NO

YES

VEndOr nO

safety stock

actual aGrEEd addItIOnal

V50160 $4,741,632 $3,006,102 $1,735,530

V50665 $2,182,698 $1,207,422 $975,276

V50805 $472,485 $267,983 $204,502

V61445 $214,369 $177,098 $37,271

V57340 $99,067 $72,992 $26,075

V50105 $30,330 $12,276 $18,054

V50255 $34,130 $22,775 $11,355

V63675 $1,854 $1,716 $138

TOTAL $7,776,565 $4,768,364 $3,008,201

FINANCIAL PERFORMANCE

Su

PP

LY C

hA

IN P

ER

FO

RM

AN

CE

SeRVICe DRIVeRS

VALUe DRAINeRS

VALUe DRIVeRS

VOLUMe DRIVeRS

Strate

gic Ali

gnment


Pricing optimization

P R O G R A M O V e R V I e W

•Multi-criteria pricing model – Item, Customer, Geography and Time

•Stratifyingandmovingcustomersto ‘ProfitZone’

•Apracticalandeffective ‘CostToServe’model

•Rulesforprofitability(Riskvs.Reward)•DOITYOURSELF–Easytoimplement pricing framework

•Abestpracticeapproachtopricing

K e Y T A K e - A W A Y S

•SalesForceDashboard– Information for better negotiation

•Howtoleverageonexistingandreadily available system information?

•Whyandhowtolinkinventoryand customer classifications?

•Structured&easy-to-understand approach

•Optimalallocationofsalesforce resources•Real-worldimplementationbenchmarks

P R I C I N G f R A M e W O R K

ANALYTICS EXECUTION

• Customer stratification• Item stratification• Customer’s item visibility• Item unit cost level• Customer-item GM level

• Recent price/margin• Recent cost• Customer max price/margin• Group max price/margin• Overall max price/margin

• Potential GM$ improvement• System aided decision-making• Augmenting Factors - New Customer - Competitor price, etc.

CUSTOMER AND ITEM ANALYSIS

PRICING RULESENGINE

WHAT-If ANALYSES

1

OPTIMIZATION2 3

“ The Pricing Optimization program really opened my eyes to a holistic approach to pricing strategy. This program is about more than just pricing—it makes you consider the cost-to-serve, which products to sell, and how to use your resources to build more core customers, serve them better,and be more profitable doing it.”

- Duane Van Dyke, Womack Machine Supply Co.


P R I M A R Y P R I C I N G V A R I A B L e S

“Given the complexity of pricing, the Texas A&M Pricing

Optimization program has gonea long way to specifying all the rele-vant elements and more importantly putting them in terms that can be

quantified and managed.”

Lawrence Mohr, Ph. D., Retired -

Senior Vice President,

F.W. Webb Company

Branch 1($3.3MM Sales)




18.4%

Texas A&M Pricing Methodology Impact(Real World Results - HVAC Distributor)

14.9%16.5%

36.3%

24.4%

GM% wITh MAnuAl PrIcInG

GM% wITh A&M PrIcInG MeThod

21.8% 19.4%

48.6%

“ The Pricing Optimization conference provided an expert level of analysis and insight that every distributor needs but few have the time or resources to produce on their own. It was both timely and valuable.”

- Paul Sommerfeld, Director, Applications & Training, CSC, A Division of WESCO Distribution

custOMEr tyPE

sEllEr’s ItEM ranK

hIstOrIcal GrOss MarGIn

lEVEls

custOMEr’s ItEMs

VIsIBIlIty

ItEM unIt cOst

Primary Pricing Variables

>> Fundamental and critical to any

pricing model

>> Readily available and/or quantifiable


network optimization


•UnplannedOrganicGrowth•MultipleFacilitiesthrough M&A’s•LongLeadTimes•ExcessiveInventory•CompetitionDriven•IneffectiveRouting/ Scheduling•PoorTruckCapacity Utilization(loadingor cubing) Market•HighCost-to-Serve

•FacilityNetwork Optimization

•HubandSpoke Design

•Servicevs. Cost Matrix

•FacilityReduction/Expansion, Optimal Network Capacity, and Reduced Operating Expenses•Optimal Network Configuration•AlignedInventoryDeployment•InsightIntoService-cost Trade-offs•HighProfitability•ReducedDeliveryCost Per Order•IncreasedCapacityUtilization

“The network optimization

research has allowed our company

to continue to stay ahead of

our competition and excel

in customer service.”

-Tim Miller, Vice President – Operations

Security Contractor Services, Inc.

BEFOrE cOnsOlIdatIOn

aFtEr cOnsOlIdatIOn


C U B I N G O P T I M I z A T I O N

C O S T V S . S e R V I C e T R A D e - O f f S

“Hats off to Texas A&M for taking common industry problems

with complex components and developing scientific methodologies

that are flexible enough to workfor any company.”

-Jimmy Roark, Regional Sales Manager

NOV Wilson

$85.3 $85.2$83.4

$82.5

$80.8

$78.8

$71.2

$75.8

2329

1620

14

36

63

46

$67

$70

$73

$76

$79

$82

$85

40%5 0% 55%6 0% 65%7 0% 75%8 0%

transportation service level (%)

net

Pro

fit $

(in

MM

)

0

10

20

30

40

50

60

70

num

ber o

f loc

atio

ns

Net Profit ($) and Number of Locationsvs Various Transportation Service Levels


research Consortium

“A collaborative research effort that brings multiple distribution and manufacturing firms and industry associations across diverse lines

of trade together to solve an industry wide challenge.”

year consortium topics number of companies

number of Industries

2000 Information systems consortium 10 7

2005 Pricing Optimization 9 6

2007 Optimizing distributor Profitability 11 6

2008 texas Mexico trade corridor 15 6

2009 sales and Marketing Optimization 20 10

2011 Optimizing Growth and Market share 19 8

2011 Optimizing customer service 6 5

2012 Optimization channel compensation 20 9

2014 Optimizing human capital development

UNDERDEVELOPMENT2014 Optimizing Value add services

2015 Market access through distribution - asia

“I’ve attended Texas A&M distribution

consortium sessions, and I’ve found

them to be among the best, most

thought-provoking gatherings I’ve

ever experienced in all my years

in the distribution business.”

-Byron Potter, CEO, Dallas Wholesale Builders Supply

“Womack Machine Supply literally owes much of its

success to Texas A&M’s Industrial Distribution program.

We have successfully used the university’s

consortia and research projects to improve profitability,

operations and supply chain management practices.”

-Mike Rowlett, CEO, Womack Machine Supply


T H e B e N e f I T S

>> Economical path to high quality research

>> Competitive head start to cutting edge best practices

>> Network with forward thinking distribution firms

>> Educate your work force on advance techniques and tools

R e S U L T S f R O M P A S T C O N S O R T I A

thE rEsEarch cOnsOrtIuM PrOcEss

INDIVIDUAL WORKSHOP

fINAL MeeTING

APPLIeD ReSeARCH

eDUCATIONAL SeSSIONS

PReLIMINARY ReSeARCH

1

6

3

4

2

5

KICK-Off MeeTING

InDUStrIAL DIStrIBUtIon ProgrAM204FermierHall,3367TAMU

College Station, TX 77843-3367 Ph 979-845-4984 fX 979-845-4980

weB id.tamu.edu

A DVA N C I N G T H E S C I E N C E O F D I S T R I B U T I O N

industry research solutions - industrial distribution · combined best practices best practices by...

Documents