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NAW LARGE COMPANY CEO CONFERENCE

NAW LARGE COMPANY CEO CONFERENCE. “MAKING SURE YOUR SUPPLIER UNDERSTANDS YOUR VALUE” SEPTEMBER 24, 2008. FIRST – TAKE THE CURRENT CHALLENGE IN CONTEXT. “DOWN MARKET” means different things at different times in different places Cycle or Trend, etc. Past Practices are relevant

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NAW LARGE COMPANY CEO CONFERENCE

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  1. NAW LARGE COMPANY CEO CONFERENCE “MAKING SURE YOUR SUPPLIER UNDERSTANDS YOUR VALUE” SEPTEMBER 24, 2008

  2. FIRST – TAKE THE CURRENT CHALLENGE IN CONTEXT • “DOWN MARKET” means different things at different times in different places • Cycle or Trend, etc. • Past Practices are relevant • Customers and Vendors will be skeptical of “instant fixes” • What have we said and done in the past? • What can be adapted, what must we alter? • Actions speak louder than words…..

  3. A “VALUE MINDSET” • GROUND IN COMPANY VALUES – Yours and Theirs • PRIMARY TACTICS: • Traditional: Customer/Product Expanse&Defense • Innovative: Expand the Service Universe • Integrated Supply, Freight/Logistics • Recycling, Product Life Cycles • Product substitution/modification • Admin efficiencies and integration • Joint marketing

  4. Sometimes “Down” Means “Up” • MANAGING INCREASES • STANDING UP FOR THE VENDOR • “Market Leader Mindset” • Early Communication • 3rd Party validations • Understand the creation of expectations • Act with empathy but not sympathy

  5. Managing Competitive Breakdown • Query: Do we “represent” the vendor or do we “broker” for the customer? • Seek full definitions of competitive offers • Pursue Full & Honest Understanding • Move discussion to “total cost” rather than “product price” • Prepare a risk analysis discussion • Prepare a time analysis discussion

  6. START SOMETHING NEW • Emphasize Momentum – Vendors want a ‘winner’, not a ‘whiner’ • Propose a new product, service, or coverage area. Can you “profit” from something they can “off-load”? • Extend benefits of IT applications • Network and Synergize with the vendor • Provide business referrals, personnel, problem solving

  7. “INTEGRATED SUPPLY” • MUCH TRIBUTE IS PAID TO “PARTNERSHIPS”; WHAT DOES IT REALLY MEAN? • Transaction Costs • Eliminate Rather than Shift • Freight Efficiencies • Warehousing • Order Fulfillment Rates • Document Management

  8. Close off the Competition • TIME IS A VARIABLE WE CAN’T CHANGE • Dramatically increase the number of “touches” • Electronic • Mailings • VM’s • During “tough times” the vendor in the “front lobe” of the mind will win

  9. “THE PVP AGREEMENT” • MUTUAL, WRITTEN COMMITMENTS • Executive Sponsor • Marketing Support • Communication Plans • Emphasize Local Support • Provide for Proper Training • New Product Development/Stewardship • IT Integration Action Plan • Integrated Supply/Supply Chain Projects

  10. Our Core Values Broad Customer Base Broad Product Range Geographic Footprint Financially Stable Experienced Leaders Volume Channel Price Stewards Environmental & Safety Program Performance Culture Capital Investments 200+ Sellers every day Inventory Investment Credit Management Sales/Leadership Dev. Programs PVP/CDV Priority 5 year Momentum LAIRD VENDOR VALUE PROPOSITION

  11. Remember Vince Lombardi… • Understand and Ruthlessly Execute on the Basics • Communicate endlessly until all parties understand everything • Take nothing for granted

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