Wesco Case Essay

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Case Report: “WESCO Distribution, Inc.” < Case Facts> WESCO’s customers have made significant changes to their business processes ( how and why?) Why: bridge the quality gap with international competition / improve their overall competitive stance by building integrated system and integrated supply chain How: implementation of stringent supplier / distributor quality program * To examine procurement cost and supply chain / sign long-term contract with less suppliers Sales reps need to change their approaches depended on types of customer; need to shift from hunter, for contractors, to farmer, for industrial customer. But customer locals were reluctant to change conventional systems because of good relationship with local distributors. [Company] Third largest full-line wholesale EES distributor; $2.2 billion in sales globally of which US sales were $1.6 billion Target: $3 billion sales and EBIT of over 5% by the year 2000; 6-8% up in sales and 12-16% up in profit Sales reps: receive same commission and salary in each branch. Each 18 NAMs serve 10-15 industrial customers and 15-20 potential customers. [Branches] 279 branches in US; own inventory, P&L responsibility / 1/3 of the branches served customers in a specific industry * Other 2/3; 40% to industrial customers, 40% to contractors and the balance to CIG customers * Each branch has autonomy from HQ * Each branch has inventory for some specific customers * Commission is same for all types of customer * Constituent member in Branch manager, outside sales reps, inside sales reps, warehouse specialist, administrative officer, office manager [Service / Products] WESCO, and other EES manufacturers, tried to offer customers the convenience of one-stop access to all of their EES needs. Added value services such as inventory analysis and cost reduction program. [Customer]

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