introduction to electrical distributors

Introduction to Electrical Distributors

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Presented By:

Scott Williams VP - Capital Projects & International Division

713.480.8581 [email protected]

www.ed-tx.com

mailto:[email protected]

http://www.ed-tx.com

mailto:[email protected]

http://www.ed-tx.com


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As part of the Sonepar Organization of Companies, Electrical Distributors has the financial strength to handle virtually any large capital project. 2015 revenues for Sonepar were $22.7 Billion USD. Sonepar has operations in 44 countries on 5 continents. In addition we have 2,800 locations and 43,000 employees worldwide. Sonepar is ranked number 1 in the US for Electrical Distributors.

Electrical Distributors (ED) was founded in 2008 by top industry performers with over 90 years experience in the Industry. ED was purchased by Sonepar in 2015 for the purpose of entering into the global large capital projects market. ED is 1 of 18 Sonepar operating companies in the US. ED has 2 locations; Houston and Dallas, Texas. We currently have 60 employees. ED expects 2016 revenues will be $60M.


History

Sonepar Information


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As the graphic to the right indicates, Sonepar has operations strategically located throughout the world. In addition to inventory and warehousing access, these locations offer the ability to obtain “In Country Purchasing Credits” while maintaining the consistent quality of service and functionality that ED offers on a local basis.

Sonepar is ranked either 1, 2, or 3 in 30 countries around the world. We have the capability to service large capital projects virtually worldwide. In addition Sonepar is ranked number 1 with many of the world largest electrical manufacturers, resulting in the lowest possible pricing levels.


Sonepar Locations

Sonepar World Rankings


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ED has a different approach to the market than do most electrical distributors. Our goal was to develop a model that adds value to the customer and to the manufacturers we represent. As such ED has chosen to provide products and services in the Electrical Power and Control (Automation) Sectors as well as the Bulk Electrical Sector. ED believes that we can combine these product sectors to deliver better value for our customers.

ED Business Strategy


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ED has chosen manufacturing partners that allow us to take a d v a n t a g e o f t h e S o n e p a r purchasing strength, but also add t r e m e n d o u s v a l u e t o o u r customers. ED believes in true partnerships with our suppliers. ED must bring value to the supply chain if we are to be successful.


ED Manufacturers

ED understands that no two large capital projects are the same. ED e m p l o y s s t a n d a r d i n t e r n a l processes then customizes them specifically for each project. This includes: Inventory Systems Customized Reporting Customized Invoicing

ED Project Management


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An important relationship for Sonepar on a global basis is with Siemens. ED has become the first FULL LINE distributor of Siemens in the Gulf Coast area. ED has access to Siemens full line of power equipment, automation products, variable frequency drives, and motors. ED is excited about our relationship with Siemens because it allows us access to the products we need to offer the most cost effective and technically acceptable solutions for engineered equipment. ED provides value to Siemens by becoming the first authorized distributor to combine Siemens Power and Automation offering into one package.


ED - Siemens Partnership

ED Packages Siemens Power with Automation


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As part of the Siemens offering, ED has pioneered a concept we call “Own the One-Line”. The idea is to introduce automation into the traditional E-House, or Power Control Building scenario, thus reducing equipment and labor costs, and reducing overall start up and commissioning times.

Above is an example of the traditional way equipment is connected to communicate to the DCS system. This involves thousands of wires going to the field and results in large amounts of man hours at start up. To the left ED has incorporated a PLC to replace the thousands of wires. Start Up changes can be made via software resulting in huge man hour savings


ED - Power Control / RIE Building Solutions

Traditional Method

High Efficiency / Lower Cost Method


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In late 2015 Siemens launched a $1B campaign to gain PLC market share in North America. ED will be leading that efforts for Siemens in the large capital project market. Siemens offers huge cost savings versus its Allen Bradley / Rockwell Automation equals. The hardware costs are 50% - 150% less and the software and support costs are even greater. Siemens has a program in place to completely rewrite existing software and provide training for personnel - FREE of CHARGE. From a technical standpoint the Siemens Hardware and Software offers some distinct advantages over the Allen Bradley product offering.


ED - Siemens Partnership - Automation


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Most large capital project customers prefer to procure equipment packages directly from the manufacturer. While this may be perceived as the best overall value for the project, it is not always the case. For projects that require the electr ical equipment to packaged in a prefabricated building, or involve equipment from multiple manufacturers, sourcing from a single manufacturer leads to higher costs. Most manufacturers must maintain profit margins in the 30% to 50% range and as a result mark up buy out items accordingly. This results in a higher cost for the project. ED has developed an innovative concept g e a re d a t re d u c i n g c o s t s f o r t h i s equipment………


Traditional Method Direct From Manufacturer

ED - Cost Savings for Large Capital Projects


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ED has developed what we believe to be a more cost effective purchasing model for large capital projects. ED has partnered with some of our customers who also supply large capital projects, and excel in specific fields. While ED will remain the lead on the project and assume all financial and legal liability, we will work with these partners to present the best value for the customer. Historically on large projects there are multiple layers of mark up on equipment and labor costs, as well as multiple layers of risk mitigation and execution costs. ED’s proposed pricing structure would be to present ACTUAL costs for equipment and labor, as well as costs for execution and risk mitigation. We would negotiate a fair project management fee to be applied to these costs. ED would also apply this same basic concept in a normal bid situation with the exception that we would propose a total cost for the project. Regardless, we believe that this methodology will provide ED with a competitive advantage and demonstrate considerable cost savings for our customers.

An additional value for the customer is the ability to “mix and match” manufacturers to achieve the best value and quality for the project. Further this concept allows the technical project personnel direct access to engineers and production at the manufacturer level.


ED - Cost Savings for Large Capital Projects


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ED - Advantages for Large Capital Projects

ED is committed to the following principles to better serve our customers:

• ED serves its customers and suppliers with the utmost honesty and integrity.

• ED strives to provide customers the best possible value at all times.

• ED strives to provide the best possible customer service at all times.

• ED through our membership in the Sonepar Group of companies can provide world wide service, products, equipment, and support.

• ED has the financial strength to handle virtually any size project.

• ED has the support team and processes in place to properly execute any size p project.

• ED has the team in place with many years of experience in managing large projects whether it be Power Equipment, Automation, or Bulk Electrical Materials.

Thank you for your time and interest in Electrical Distributors. We look forward to working together soon.

introduction to electrical distributors

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