The Current

the current
FA L L 2 0 1 4
Steering Your Ship Through Rough Waters
Richard Phillips, captain of the MV Maersk Alabama
2014 Eastern Region Conference Keynote
In this issue:
page 4-5
page 8
page 10-11
page 12
Every Vote Counts
The Industry Gives Back
Imagine the Possibilities
Knowledge is Power
Encourage Voter
Participation at
Your Company
Charitable Giving is the Best Gift
for You and Your Community
NAED Unveils the 2014-2015
Regional Conferences Previews
Combat the Impact of
Alternate Distribution
Channels
NATIONAL ASSOCIATION OF
ELECTRICAL DISTRIBUTORS
PRESIDENT’S LETTER
Educate. Innovate. Participate.
This month we kick off the NAED Education & Research Foundation’s Annual Campaign. I believe this
year’s theme, “Educate. Innovate. Participate.” truly encompasses the Foundation’s mission.
For more than 45 years, the Foundation has provided educational opportunities for the electrical
distribution industry. We continue to lead through example by using innovative technologies in
educating the future industry leaders. I am encouraging you to participate in this very worthwhile effort.
Thanks to the generosity of our members during last year’s campaign, we were able to exceed our goal.
Past contributions have resulted in projects such as:
• Updating EPEC—the industry’s premiere product and sales training courses. This industry favorite,
now includes the most up-to-date versions of the National Electrical Code (NEC) and the Canadian
Electrical (CE) Code. New products have also been introduced into the exercises, projects and
blueprints throughout the series.
• NAED Shorts are brief video presentations on topics that are relevant to your work in the industry.
This year, we’ve released more than 20 Shorts that cover specific aspects of the EPEC program.
These videos have been viewed nearly 3,000 times by EPEC students. Look for additional NAED
Shorts to be released in the next year.
Your contribution has a powerful impact. The funds received go to the development and updating of
industry-specific training and education programs. These contributions can have a profound impact
on the individuals that have chosen this industry for their career. For example, in 2013, we had 339
graduates from across all levels of the EPEC program. That’s an increase of more than 14 percent from
the year before.
I understand that you have many choices when it comes to supporting non-profit organizations. Please
consider making a tax-deductible contribution to the 2014-2015 Annual Campaign, which will run
through June 30, 2015. Both companies and individuals are encouraged to contribute any amount of
their choosing. Contributors to the 2014-2015 Annual Campaign will receive a recognition letter, a listing
in tED magazine and acknowledgement at all NAED regional conferences and the National Meeting.
To download a gift form, visit the NAED Foundation Annual Campaign website at www.naed.org/
AnnualCampaign. For more information, please contact the NAED Foundation at 888-791-2512.
Tom Naber | President | NAED
Tom can be reached at 314.812.5312 or tnaber@naed.org.
By: Bridget McCrea, tED magazine contributor
DATAFirst: Making a Clean Sweep
Since September 2013, Frost Supply
of Maryland Heights, Mo., has been
working with DATAgility, developer
of the new data quality scorecarding
program DATAFirst, to clean up
its catalogue data and upgrade
its corporate website. We’ve been
following Frost Supply through the
process of improving its data quality
and its e-commerce presence. Here’s an
update on where the project stands.
Pulling all of the Pieces
Together
According to Nick Arb, Frost’s marketing
manager, the distributor has already
put a lot of man-hours into getting
its product data ready for publication
in the firm’s new website. As part
of that process, the company has
obtained quality product images (when
available), classified products using the
appropriate categories, and taken other
steps to clean up its existing data.
Frost Supply also met with two
DATAgility representatives who
“stopped by and sat down to discuss
important points with us,” says Arb,
“including what makes a good
e-commerce presence, how our
business operates online and offline,
and the role that DATAgility is playing in
THE CURRENT : FALL 2014
our project.” The group also discussed
the need for good, reliable product
data, taxonomy, and schema, and the
value of having all of a distributor’s
products categorized correctly.
As part of the company’s commitment
to clean up its data and create a userfriendly website, Frost Supply has also
submitted data to one manufacturer
(Cooper Bussmann) for review to see
how that data matches up with the
manufacturer’s own information. “We
want to know where its information
isn’t aligned with ours,” says Arb, who
is currently waiting for results of that
analysis.
When the results come back from
Cooper Bussmann, Frost Supply will
drill down and figure out what specific
data areas need attention. This will help
the distributor make smart decisions
and changes across its entire catalogue.
Concurrently, the firm is working with a
web developer to establish a beta site
in anticipation of an early-2015 rollout
of its new web presence.
stay current
DATAFirst Update
NAED launched the DATAFirst
program in November 2013 at
the Eastern Region Conference.
Developed as a solution to help the
electrical distribution industry with
its specific product data challenges,
DATAFirst is a comprehensive
program that includes collaboration
between distributors and
manufacturers, customized reports
and data management collection. It
is not a data warehouse.
Based on input from the pilot
participants, we have launched
additional components to the
program. In the distributor offering,
we are now including mass
data sync reporting. This allows
distributors to address their entire
data set and do a full data cleanup.
In addition, scorecarding can be
done individually manufacturer by
manufacturer or in mass as well.
Furthermore, personalized data
content is offered so distributors
can tailor the data based on their
specific requirements and needs.
Those interested in participating in
the DATAFirst program should contact
DATAgility at datafirst@datagility.com.
3
Every Vote Counts
Make Your Voice Heard by Getting the Word Out at Your Company
In a time of unprecedented
legislative gridlock, it’s more
important than ever to hold our
representatives accountable.
On November 4, 2014, Americans will
elect 435 members of Congress, 35
Senators, 36 Governors and many other
state and local officials.
“In a time of unprecedented legislative
gridlock, it’s more important than
ever to hold our representatives
accountable. Congress can finally
bring fairness to distributors facing
competition from online sellers who
promote tax avoidance. Congress
could also repeal LIFO. How they vote
depends on your vote,” said Ed Orlet,
NAED vice president of Government
Affairs.
Voting is one of the most important
rights and responsibilities that United
States citizens have. Approximately
150 million Americans are qualified
to vote. Unfortunately, just more than
half (57 percent) regularly exercise that
right. The reality is that about half of us
decide who will represent all of us.
4
Because the cornerstone of our
system is a government of the people,
increased voter participation can, and
will, improve how that system performs
for each of us. NAED is mobilizing its
grassroots efforts with resources to help
members and their stakeholders to get
to the polls this November.
Our nation’s businesses are uniquely
positioned to provide voter education
to employees, shareholders, retirees
and their families. This is a significant
portion of the U.S. population. As
a part of the “Get Out the Vote”
initiative, NAED Government Affairs
offers members a number of voter
education resources through its online
Government Action Center.
Here are three areas where employers
can have the biggest impact:
• Voter registration
• Absentee ballots
• “Get Out the Vote” drives
Voter registration
People fail to vote for many reasons,
including lack of awareness, apathy,
confusion, or the belief that ‘my vote
won’t make a difference.’ No matter
how well we educate and motivate our
employees, it is important to remember
that our work won’t count unless we
get them to register.
Mobilize your team by first making sure
everyone is registered to vote.
• Include voter registration material
in employee information packets,
and in welcome kits for new and
relocating employees.
• Delegate voter registration duties
to your managerial
staff. Ask them
to distribute
registration
materials at staff
meetings and to
help employees
who may need
assistance.
Absentee ballots
The key to making every
vote count is to make voting an easy
activity—no matter the circumstances.
Personal or business travel, illness, or
even transportation problems, can
prevent people from getting to the
polls. Although the rules for absentee
ballots vary from state to state, the
process is typically not complicated.
NAED
One of the easiest ways to get
absentee resources is to visit the NAED
Government Affairs website, enter your
zip code and follow the instructions for
your state.
• Remind everyone that absentee
ballots are available to all who are
registered to vote.
• Remind anyone traveling on, or
near, Election Day about absentee
ballots.
•Attach a message to
your organization’s
travel and expense
account forms.
•Include voter
registration
information in your
company’s travel policy.
place and what time the polls close—
this seemingly small action has been
proven to have a strong impact on
voter turnout.
Other voter reminders include:
• Leaving flyers on desks
• Hanging posters in lunchrooms
and other public areas
• Posting a reminder on the front
page of your company intranet
• Sending an e-mail
For information and tools to help with
your workplace voter education efforts,
visit the Government Affairs website at
www.naed.org/tellcongress.
Every vote counts; make your voice
heard on November 4.
•Use NAED’s GOTV
Toolkit messages
to communicate with your
employees.
Get Out the Vote
Sometimes even the best efforts don’t
yield the results we want. Working to
prepare employees doesn’t guarantee
that they will actually make it to
the polls on Election Day. Remind
employees the location of their polling
THE CURRENT : FALL 2014
stay current
Contact us for your free GOTV Toolkit at
naedcommunications@naed.org.
Tell us why you vote on Twitter using
#NAEDvotes and you could be featured in
an upcoming issue of Newsline.
Does every vote really
count?
The short answer is yes. Here are some
important events in U.S. history that
were decided by just a few votes:
• Richard Nixon, not John F. Kennedy,
would have become President of the
U.S. in 1960 if one person from each
voting place had voted differently.
• If just one U.S. Senator had voted
differently, U.S. President Andrew
Johnson would have been removed
from office in 1867.
• In 1845, Texas might not have
become part of the United States
if one U.S. Senator had voted
differently.
• In the closest election in U.S. Senate
history, in New Hampshire in 1974,
Republican Louis Wyman beat
Democrat John Durkin in several
recounts. The election was contested
for eight months. Ultimately, the
Senate called for a revote, and
Durkin won by two votes.
• In 2000, Democrat Maria Cantwell
challenged three-term incumbent
Republican Sen. Slade Gorton of
Washington and defeated him by
0.1 percent of all votes cast after a
recount.
• Incumbent Republican Mike Kelly
defeated Democratic challenger
Karl Kassel by one vote for an Alaska
House seat in 2008 following a
recount.
5
Elevating the Experts
Congratulations to the Newest CEP Certificants
NAED congratulates the 68 individuals who earned the Certified Electrical Sales Professional – Inside SalesTM and Certified
Electrical Sales Professional – Outside SalesTM designation following the certification exam completed in July. Since the first
exam in 2009, the CEP program has certified 817 professionals from 143 companies nationwide.
The CEP is a professional designation for distributors, manufacturers, and others serving in the electrical distribution channel.
Certification demonstrates knowledge and expertise on the products and services offered by the industry.
Certified Electrical Professionals - Inside SalesTM:
Dean A. Barak, W.A. Roosevelt Co./Div.
of Dakota Supply Group
John J. Barnes, Mayer Electric Supply
Co., Inc.
Tradd K. Bazemore, Electrical
Equipment Company
Catherine C. Bearinger, Rexel-Mid
Atlantic Division
Nathan R. Best, Butler Supply, Inc.
Frederick E. Brutko, Jr., Warshauer
Electric Supply Company
Eric Dreher, Electrical Engineering &
Equipment Co.
Andrew G. Durham, Rexel
Charlie P. Fallon, The Reynolds
Company
Marco A. Gonzalez, Border States
Electric
Arthur D. Hammond, Mayer Electric
Supply Co., Inc.
Kevin Hansen, Republic Electric
Company
Lee R. Jacques, McNaughton-McKay
6
Electric Co - North Carolina
Matthew W. Ritz, Leff Electric
Barry S. Katz, Mid-Island Electrical
Supply
Cheryl Roebuck, Electrical Equipment
Company
Paul W. Kemp, Leff Electric
Bruce J. Schmalfuss, Mid-Island
Electrical Supply
Chris Kite, Rexel
Angelique E. Lavariega, Schaedler
Yesco Distribution, Inc.
Grace McAbee, Ideal Electrical Supply
Corporation
Diane McClure, Electrical Equipment
Company
David J. McDonald, Jr., Shealy
Electrical Wholesalers, Inc.
Eric D. McFarland, FDL Automation &
Supply Co.
Michael T. McGuinness, Turtle &
Hughes, Inc.
Jody B. Mills, The Reynolds Company
Matt Peterson, Republic Electric
Company
Henry M. Shaw, The Reynolds
Company
Rob D. Sibert, FDL Automation &
Supply Co.
Mark Stevenson, Rexel
William D. Thornton, Jr., Crown Supply
Co., Inc.
Kacey Tucker, Mayer Electric Supply
Co., Inc.
Michael W. Vernon, Mayer Electric
Supply Co., Inc.
Edward E. White, State Electric
Supply Co.
Sean Williams, Hunzicker Brothers, Inc.
William E. Rainey, Leff Electric
Josh R. Reitz, Van Meter Inc.
NAED
Certified Electrical Professionals - Outside SalesTM:
Janice L. Bernardini, State Electric
Supply Co.
James V. Magrino, Mid-Island Electrical
Supply
Kim L. Bond, Mayer Electric Supply Co.,
Inc.
Peter A. McGrade, Mid-Island Electrical
Supply
Mervin C. Brown, IV, Ideal Electrical
Supply Corporation
Cameron H. Pederson, Dakota Supply
Group
Sean T. Caldwell, Wiseway Supply
William B. Prall, Electric Supply Inc.
Jeffrey L. Evans, Mayer Electric Supply
Co., Inc.
Sean P. Roberts, Thomas & Betts
Corporation
Glenn A. Fielding, Mayer Electric
Supply Co., Inc.
Loren Ross, Springfield Electric Supply
Company
Jeffrey J. Gray, CapitalTristate
John Scarfogliero, Mid-Island Electrical
Supply
Robert D. Grimsley, CapitalTristate
Gary H. Gwinn, State Electric Supply
Co.
Catherine A. Halleran, Mid-Island
Electrical Supply
Matthew M. Healy, CapitalTristate
Keith W. Hunley, CapitalTristate
Shawn C. Sheppard, CapitalTristate
John W. Shores, Mid-Island Electrical
Supply
Mark E. Stine, CapitalTristate
Michael Waller, Mayer Electric
Supply Co., Inc.
Jason B. Jordan, Irby
Michael C. Ward, Mayer Electric
Supply Co., Inc.
Brian A. King, Bradley Electro Sales
Corp.
Jim T. White, CapitalTristate
Jeffrey A. Koontz, CapitalTristate
Charles T. Whitman, CapitalTristate
Tracy D. Lampley, Border States
Electric
stay current
Steven G. Langford, Mayer Electric
Supply Co., Inc.
Gain the competitive edge—become a CEP
by registering for the next exam, January
12-23, 2015. For more information, visit
www.naed.org/CEP.
THE CURRENT : FALL 2014
CEP Certification Builds
Confidence
When Dave Gozzard set out to achieve
Certified Electrical Professional Outside Sales (CEP-OS) status, which
he accomplished in August 2009, his
motivations were both professional and
personal.
An outside sales associate and lighting
specialist for The Hite Company,
headquartered in Altoona, Pa., Gozzard
re­called, “I thought certification would
help me in my career and that it might
give me an advantage over some of my
competitors. Actually, my motivation
was a little bit personal too. I wanted to
prove to myself that I could succeed with
it—that I could take the prep course and
pass the professional exam.”
Gozzard has realized these goals—all
of them—and has reaped additional
rewards not initially anticipated, such as
easier sales (“never easy, but noticeably
easier,” he noted).
“My customers are more confident in my
decisions and the way I handle things,”
he explained. “For example, when I
give customers my recommendations
for lighting and controls, I explain that
they’re cost-effective and will give them
money back, and they don’t question
that. They accept my recommendations.”
Read the full story by Jan Niehaus, originally
published in the August 2014 issue of tED
magazine, at www.tedmag.com.
7
The Industry Gives Back
Charitable Giving is the Best Gift for You and Your Community
In August, the country got caught up in
one of the most successful social media
fundraisers to date—the ALS Ice Bucket
Challenge. The video challenge has,
at last count, raised more than $100
million. Several members took on the
challenge including NAED President
and CEO Tom Naber, NAED Chair
Maureen Barsema, and NAED Chairelect Glenn Goedecke.
Whether it is donating $100 to your
favorite charity, volunteering an
afternoon at a shelter or dumping a
bucket of ice water on your head to
raise awareness, giving will make you
feel wonderful. It also offers an example
to others in your community.
The ALS Ice Bucket Challenge is an
excellent illustration of what can
happen when thousands of people get
together and coordinate their giving.
Beyond the good that comes from the
work of the organization you donate to,
charitable giving provides significant
benefits to the business itself.
When a company establishes a giving
program, they will begin to see positive
results in several ways, including:
8
• Public relations: The media notices
an organization’s philanthropic
activity. All charitable organizations
rely on the media to spread the
word about their work.
• Social media: While there is always
the risk of backlash from negative
comments on social media, most
companies reap the benefits of
positive mentions and sharing.
• Reputation: Many consumers
make buying decisions based on
how they feel about a company.
• Profit: All of the above leads
to greater profit as positive
public perception and social
media sentiment
influences
branding.
It’s not just the public
aspect of giving. It also
has a positve effect
on an organization’s
employees including:
engaged in their work and more
pleased with the corporate culture,
it stands to reason that morale will
naturally be higher. This leads to
less time and productivity loss as
well as lower turnover rates.
• Teamwork: Corporate giving brings
together people from all levels of
the organization—from the C-suite
to the mailroom—everyone feels
like they are working together
toward the same goal.
According to Giving USA, in 2013, total
giving was more than $335 billion. The
largest source of charitable giving came
from individuals at $241.32 billion. And,
more than 65
million adults
volunteered 7.9
billion hours of
service, worth an
estimated value
of $175 billion.
NAED accepts the #IceBucketChallenge. Visit
youtube.com/NAEDevents to watch the video.
• Employee engagement: Charitable
giving improves employee
engagement by boosting
productivity, ethical behavior,
gratitude to the organization.
• Morale: When employees are more
stay current
NAED wants to know how your company
‘Gives Back.’ Tell us how and you could be
featured in an upcoming newsletter. Email
us at naedcommunications@naed.org.
NAED
NAED and RepFiles Partner to Launch Mobile App
Access the most current manufacturer marketing content straight from your phone
RepFiles enables distributors to
access up-to-date content from
different manufacturers or sales
agencies from one location.
Anytime, anywhere—with or
without internet connection.
Technology has been one of the
biggest drivers of change in the past 20
years. It has had an enormous impact
on how we function on a daily basis.
Today, technology keeps getting
smaller, faster and more portable. More
businesses are turning to portable
devices such as tablet
computers to assist with
the sales process. That
is exactly why NAED
partnered with RepFiles,
LLC for the NAED Edition
application.
Now available through the Apple App
Store and Google play, this new app
is intended for NAED members to
securely deliver files to distributors’
mobile devices and computers. At
no cost to the distributor, under one
uniform system, distributors have
THE CURRENT : FALL 2014
access to up-to-date content from
different manufacturers or sales
agencies.
The RepFiles System makes it easy for
companies to prepare their teams with
an always-current package of sales
and marketing collateral available
24/7. Registered RepFiles users who
download the NAED Edition app can
access these materials from the cloud
and choose to store them locally for
instant access, with or without Internet
connection.
The NAED Edition app is free to
download and is compatible with iOS
and Android mobile devices
(smartphones and tablets).
There is no charge to access
content that is distributed
through the app. NAED
manufacturer members
interested in delivering
content through the app
will receive a discounted annual
subscription.
stay current
For more information, visit www.RepFiles.
net or contact support@RepFiles.net.
Make Smart Technology
Decisions
Whether you want to enhance the
look of your website or integrate an
online storefront, NAED’s Executive
Guides give you industry applicable
advice and best practices for making
good use of technology in your
business.
Executive Guide 6: Server Virtualization
Server virtualization is a technology
that enables a single physical server
to be divided into multiple logical
servers. This process is essential to the
industry because it decreases capital
outlays, reduces operating expenses,
increases availability and improves
responsiveness.
Executive Guide 7: Selecting Tablet
Computers
Since the introduction of Apple’s first
generation iPad®, in April 2010, tablet
computers have become essential
business tools. This guide defines why
mobile devices are important in the
industry.
Executive Guide 8: IT Disaster Recovery
Developing an IT disaster recovery plan
is the first step in ensuring business
continuity. This guide will help you take
the first steps.
To see the complete set of Executive
Guides, visit www.naed.org/
strategictechnology.
9
Imagine the Possibilties
NAED Unveils the 2014-2015 Regional Conferences Previews
Irish playwright George Bernard Shaw
once said, “You see things; and you say,
‘Why?’ But I dream things that never
were; and I say, ‘Why not?’” And, that is
what the NAED regional conferences
are all about. Now is the time to
“Imagine the Possibilities.”
Attending the regional conferences
provides the opportunity to learn new
and better ways to operate a successful
business.
As usual, the first day of each
conference is dedicated to education.
A wide range of topics, for a variety of
audiences, will be discussed, including:
• Alternate Distribution Channels’
Impact on the Industry
Bob Segal, Frank Lynn & Associates
Recommended Audience: President,
CEO, VP, Technology
• Death, Taxes & Difficult
Conversations
Brendan Sullivan, corporate
creativity coach
Recommended Audience: Anyone
with sales and/or negotiation
responsibilities
• Harnessing Technology to Change
the Work Environment
Panel discussion
10
Recommended Audience: IT,
Operations, Technology, HR
• Connection Strategies
Terry Hawkins, best-selling author
Recommended Audience: Anyone
responsible for managing a team
• Competing Against the Online
Giants
Denise Keating, DATAgility
Recommended Audience: Sales, CEO,
President, VP, Technology, Marketing
• Baby Boomers Staying
R-E-L-E-V-A-N-T?
Steve Kayser, media expert
Recommended Audience: Anyone
who is a baby boomer
• Selling Real Value Solutions
Sean Leahy, regular contributor
to EW
Recommended audience: National
Account Managers and anyone with
sales managers
In addition to education sessions, the
regional conferences also provide
unparalleled opportunities in
networking, professional development,
issues discussion and information
exchange.
Eastern Region Conference
November 10-12, 2014
Marriott Marco Island | Marco Island, Fla.
The Eastern Region
Conference keynote
speaker is Captain Richard
Phillips. Phillips was
Captain of the Maersk
Alabama (real life inspiration for the film
“Captain Phillips,” starring Tom Hanks).
Phillips shares his compelling story—as
well as a “floating CEO” in charge of the
day-to-day operations of a multi-million
dollar ship and the crew he managed.
Phillips will discuss the vital importance
of leadership and teamwork, combined
with a belief in the power and potential
of yourself and your team, as seen
through the eyes of an unassuming
hero who conquered an extraordinary
challenge.
Register now for the Eastern Region
Conference at www.naed.org/
easternregionconference.
stay current
For more information on NAED’s Regional
Conferneces and all upcoming events, visit
www.naed.org/events.
NAED
Western Region Conference
January 19-21, 2015
Hilton Bayfront | San Diego, Calif.
J.B. Bernstein, the
inspiration behind the
major motion picture
“Million Dollar Arm,”
starring John Hamm,
will keynote the Western Region
Conference. Bernstein is a former sports
agent having represented the likes of
Barry Bonds and Barry Sanders.
Following an epiphany one evening
after watching a professional cricket
match, Bernstein traveled to India in
hopes of finding talent that could cross
over to major league baseball. After
auditioning 40,000 hopefuls, Bernstein
came back with two 19-year old finalists
who ultimately became the first Indian
players to sign with professional
baseball teams. Bernstein shares a
message of the inner workings of the
sports industry and how to find the
extraordinary within the ordinary.
Registration will open in November for
the Western Region Conference.
THE CURRENT : FALL 2014
South Central Region
Conference
February 17-19, 2015
JW Marriott Hill Country | San Antonio,
Texas
Paul DePodesta, vice
president of Player
Development and
Scouting for the New York
Mets, and subject of the
film “Moneyball,” will keynote the South
Central Region Conference.
DePodesta served as Assistant General
Manager of the Oakland Athletics from
1999 to 2003. At the time of his hire,
Oakland was one of the worst teams in
the league. In an industry entrenched
in antiquated thinking and outdated
systems, the stagnant team needed
the unique management and creative
approach that A’s GM Billy Beane and
DePodesta brought to the table.
DePodesta will discuss the innovative
strategies he used to create a winning
team, as well as the application of these
strategies in the corporate world.
Registration for the South Central
Region Conference will open in
December.
Why NAED Members
Attend
“NAED meetings are much like
extracurricular activities; they are
an extension of my work. Attending
them helps you think outside the
box, keeps you reenergized with your
organization and helps bring new
ideas to the table.”
-Gena Redding, Director of Marketing,
Standard Electric Supply Co.
“The interaction between other
distributors and manufacturers is
second to none. These meetings allow
us to look at things differently, share
best practices and learn from others.”
-Kelly Vliet, VP/Sales Manager,
Medler Electric
“The conferences are wonderful—the
meetings and the speakers—are very
informative. But I think the true value
is in the networking. When you get
a bunch of people together that are
really passionate about something,
it’s a pretty cool experience to see the
energy and the ideas form.”
-Rocky Kuchenmeister, General Manager,
K/E Electric Supply Corp.
“The NAED conferences are a great
place to meet all your vendors at
one time. They provide a great place
to learn about where the industry is
heading.”
Bill Squires, Vice President, SMC
11
Knowledge is Power
Combat the Impact of Alternate Distribution Channels
In recent years, the electrical
distribution channel has seen
businesses outside the traditional
brick and mortar distributor become
a competitive threat. First, it was big
box retailers such as Home Depot
and Lowes, then broad line industrial
distributors. More recently, the industry
realized that online resellers like
Amazonsupply.com are becoming an
increasing concern.
Jeff Bezos has been quoted as saying,
“Your profit is my opportunity,” so how
do we combat that? It’s true what they
say—that knowledge is power—and
understanding the actual threat is key.
Companies are attracted to the channel
because online sales of industrial
products are growing at twice the
rate of traditional sales methods—40
percent of the top 200 electrical
wholesaler websites lack e-commerce
capabilities and several electrical
categories (e.g. lighting) have a high
margin to weight ratio.
The NAED Foundation’s Channel
Advantage Partnership has recently
published the Alternate Distribution
Channels project. This report offers
12
a comprehensive look at the impact
of alternate distribution channels on
the industry. Included in the report is
detailed information regarding:
How Distributors are
Responding to Alternate
Channel Threat
• Online companies who pose the
biggest threats
Electrical distributors are beefing up
sales and technical skills and pushing
manufacturers to “pay for value.”
• Complete results from the
contractor purchasing survey
• Possible scenarios that outline
the potential fallout from their
presence
• A range of conclusions and
recommendations to consider
It has become abundantly clear
that electrical distributors strongly
believe that online sellers will have an
operating cost advantage. However,
most distributors believe they can
offset that with value-based discounts
from manufacturers (see the Selling
Services research on page 13).
The industry will need to continue
to learn about this threat in order to
compete.
stay current
Top 5 Methods Distributors Are Using to
Respond to the Alternate Channel Threat
1. Better Sales Training
2. More Technical Training
3. Negotiating with Manufacturers
4. Expanding Product Lines
5. Upgrading IT Capabilities
General Satisfaction
Contractors are either very or somewhat
satisfied with their electrical distributors.
But, how could distributors improve
their performance even more?
•
More inventory and better lead
times
•
Pricing consistency
•
Better response time and handling
of quotes
•
Improved customer service and
order follow-up
•
Better trained salespeople
To download the full report, visit
www.naed.org/alternatechannels.
NAED
What Services are on Your Roster?
Check Out the Lead Services with the New Selling Services Research
With online giants like Amazon and Google beginning to enter the business-to-business market, electrical distributors are
learning new ways to communicate the tremendous value they provide to their customers. To help with that effort, the
NAED’s Eastern Region Council developed the Selling Services survey to benchmark the value-added services electrical
distributors are currently offering.
Survey results include:
• 34 percent said they do business with commercial electrical
contractors
• 49 percent said their value-added services are managed by
their sales staff
•
54 percent currently charge for value-added services
• 8 percent said they don’t currently charge for valueadded services because they don’t know where to start
The survey will help facilitate effective communication
of the value of services provided by the electrical
distribution channel. Expanding the conversation
of “value” to your customer, your employees and to
the “channel” as a whole, allows individual electrical
distributors to evaluate where they are today and to develop a possible
road-map in offering new services in the future.
By educating your employees on the importance of always looking for ways to differentiate your company from the
competition, you can remain relevant to both your customers and suppliers.
Words of advice:
• “Value-added services are sometimes the only thing seperating you from your competitor.”
• “Understand what your cost structure is in order to charge accordingly for your services.”
To view the entire report, visit www.naed.org/research.
THE CURRENT : FALL 2014
13
Mark Your Calendars
Stay connected with the people, issues and technology that impact your business every
day by saving the date for these important NAED events.
OCTOBER
JANUARY
#tEDchat Discusses Industry Data
7 Branch Management Orientation
Webinar
6
Branch Management Orientation
Webinar
On September 8, Twitter users from all over the
industry joined in to discuss the ways we can
all work together to achieve quality data.
9
CEP Informational Webinar
8
CEP Recertification Webinar
30
Women in Industry Bootcamp
12-23
CEP Exam
30
CEP Informational Webinar
19-21
Western Region Conference
NOVEMBER
FEBRUARY
3-4
Branch Management Bootcamp
15
4
CEP Informational Webinar
5
EPEC Introduction Webinar
10-12
Eastern Region Conference
20-21
Branch Management Bootcamp
DECEMBER
1 CEP Winter Exam Early Bird
Deadline
2
CEP Informational Webinar
3 Lake Michigan Club Holiday
Event
CEP Recertification Deadline
(March 2012 CEPs)
17-19 South Central Region
Conference
@WernerElectric: Having accurate, highquality images for eCommerce is a must. A
customer shouldn’t have to ‘hope’ they’ll get
the right product. #tEDchat
@rfisher1228: Information/Data is like eggs...
the fresher the better! #tEDchat
CEP Informational Webinar
APRIL
7 Branch Management Orientation
Webinar
21-22
@KeatingDenise: To be effective in today’s
selling environment high quality data is more
than a nice-to-have. It is a must-have.#tEDchat
@garyowen: Distributors capture tons of data
in their #erp systems. The key is to find the best
ways to interpret and use it. #tEDchat
MARCH
10
@tEDmagazine: So, how important is data to
you? Personally, for your company, and for the
industry as a whole? #tEDchat
Branch Management Bootcamp
@FrostSupply: Clean data from manufacturers
must start at beginning; products in the wrong
categories only delay the process. #tEDchat
@angelabaraks: Mfrs. need to put priority/
resources on the mission of delivering quality
data to distributors who need to sell their
products. #tEDchat
@NAED_org: Well put! RT @rfisher1228 Data is
King! it’s “IT” vs “sales” and the nerds have won!
;) #tEDchat
10
EPEC Introduction Webinar
MAY
15
CEP Winter Exam Deadline
12
CEP Informational Webinar
16
CEP Recertification Webinar
16-19
National Meeting
23
Women in Industry Bootcamp
@DATAgilityInc: Data is a strategic asset and
those who know how to use it will thrive, others
may be left behind. #tedchat
Don’t miss the next #tEDchat, happening every
second Monday of the month at 1 p.m. CDT
View our industry calendar at www.naed.org/calendar.aspx
14
NAED
NAED News Briefs
Important Association News for You to Know
Branch Management
University New Semester
Register now for the next Branch
Management University (BMU) class
beginning January 1, 2015. BMU
is a three-level, guided education
program that focuses on strengthening
management skills in four key areas:
customers, operations, financials
and employees. Students will gain
knowledge that will help them meet
goals and progress their careers.
Visit www.naed.org/BMU for more
information.
New NAED Shorts Added
NAED Shorts are brief video
presentations on topics that are
relevant to your work in the industry.
Those currently enrolled in the
Electrical Products Education Course
(EPEC) will want to check out the
new companion videos. These videos
explain topics covered in your course
work. NAED Shorts are available on the
NAED YouTube page at www.youtube.
com/NAEDevents.
tEDTV Re-launched
tED magazine recently launched an
enhanced version of tEDTV, which
offers a library of product, technology
and company videos for the industry.
THE CURRENT : FALL 2014
tEDTV focuses only on electrical
distribution and connects related
videos so users can easily find more
information. See it live, at
tedtv.tedmag.com.
Register Now for the January
CEP Exam and Save
Register now to take the Certified
Electrical Professional (CEP) exam
scheduled for January 12-23, 2015.
You’ll save $100 by signing up before
the December 1 early bird deadline.
Welcome New Members—
Joining June - August 2014
Asesor Electrico, S.A. de C.V.
Chelsea Lighting, Inc.
Dunn Electric Supply Co. Inc.
IESA Los Materiales Electricos
Interstate M & E SDN. BHD.
Kaman Industrial Technologies
For suggested courses, FAQs, candidate
guides, sample exam questions,
self-assessments and other helpful
materials, visit www.naed.org/CEP.
Minerallac/Cully
It’s an EPEC Celebration!
ProBuilt Professional Lighting
To recognize the updated 2014 EPEC
levels, we’re celebrating for the next 14
months (through August 2015). Each
month, any student that registers in an
EPEC 2014 level or completes an EPEC
2014 module (1 level = 4 modules), will
be entered in a giveaway to win a $25
VISA gift card.
At the end of the promotional period,
students that have graduated a level
will be entered in a giveaway to win
one of four Smart TV grand prizes.
Learn more at www.naed.org/EPEC.
OutBack Power Technologies, Inc.
PHD Manufacturing, Inc.
Synapse Wireless Inc.
Vacon Inc.
W. Va. Electric Supply Co.
Zeller, a Division of Kaman
Headquartered in St. Louis, Mo., the National
Association of Electrical Distributors (NAED)
is a 501(c)6 not-for-profit organization dedicated to serving and protecting the electrical
distribution channel.
Editor: Cathy Bryson
Asst. Editor & Designer: TG Livak
15
NATIONAL ASSOCIATION OF
ELECTRICAL DISTRIBUTORS
1181 Corporate Lake Drive
Saint Louis, MO 63132
Presort Standard
U.S. Postage
PAID
St. Louis, MO
Permit #3989
www.naed.org
P: 888-791-2512
F: 877-312-9801
Annual Campaign At-A-Glance
The NAED Education & Research Foundation provides information and training products that create the most effective channel
to the market for distributors, manufacturers and their customers. Your contribution to the Annual Campaign supports the
professional growth and career development of those who work in this industry.
16
NAED