The 18-month study, which began Feb. 24, was designed to identify best practices in demonstrating value and creating fair compensation for all channel partners working within wholesale distribution.
Participating wholesale distributor members included Crescent Parts & Equipment Co. Inc. (Manchester, Mo.), G.W. Berkheimer Co. Inc. (Portage, Ind.), and Johnson Supply (Houston).
Supplier members included Nordyne (O’Fallon, Mo.), Allied Air Enterprises (West Columbia, S.C.), and Superior Radiant Products (Stoney Creek, Ontario).
“This consortium will greatly serve the supply chain because all parties must identify how they are uniquely adding value to their customers. Are the services provided still valued and relevant for compensation? If not, stop doing them and let’s identify the ones that will better assist our customers. These are all great questions that need to be addressed throughout the chain,” said Sheila Smiggen, business strategy manager, Allied Air Enterprises. “Partnering, transparency, and mutually beneficial goals will ensure a win-win for both distributors and OEMs. As an OEM, it is great to have a seat at the table for open dialogue to support one another’s long-term profitability, growth, and to identify the best means for compensation.”
Publication date: 4/9/2012