May

2015

There is something really special that happens at the NetPlus Alliance Annual Meeting. I think it has something to do with the beautiful M Resort and the hot desert sun, but the real

reason lies in our 2015 Annual Meeting theme, “Value Relationships.” Thank you to the distributors and suppliers that attended the event. We are truly grateful for your support.During my address at the award luncheon, I talked a lot about our mission of engagement and its impact on our growth. Over the last two years, the NetPlus Team has executed several initiatives to ‘get our arms around the group,’ hosting events to bring our distributors and suppliers together. The regional meetings, trainings and our annual meeting have had a tremendous impact on NetPlus Alliance and our members, resulting in a 13.4% year over year growth for the group.When we looked back at 2014, we found that the NetPlus members that attended the Annual Meeting had almost double the growth of non-attendees for both purchases and adding new NetPlus suppliers. The training and regional meeting results are even more exciting; attendees grew at almost triple the rate (23%) of non-attendees (8.8%).Engagement develops the relationships that drive growth. NetPlus is excited to provide several opportunities for you to participate in partnership meetings in 2015. We have launched the NetPlus Continuing Education Program this year to offer you more hands-on trainings throughout the year in various locations in the United States. The current schedule of regional meetings and trainings can be found on page 14 in this newsletter and will soon be available on the NetPlus website. Keep in mind that attending NetPlus events earns you points toward a higher engagement score in the Points Plus program. Points Plus is a system to measure your participation with NetPlus Alliance that rewards active members with a higher rebate return. Visit the Member Portal to view your current score and to learn how you can get to the next level.We do more together. Let’s build better relationships with each other and continue the momentum of the Annual Meeting for record growth in 2015!

- Jennifer Murphy, President

Newest MeMbersSuppliers• C-Line Products• ProBuilt Professional

Lighting

Issue FeaturesP14Milwaukee Tool 2014 Award Winners Schedule of EventsP9 P10 P11–

Distributors• Champion Bolt &

Supply• East Coast

Contractors Supply• Genalco, Inc.

• Hardware Sales• RAF Supply Inc.

P2

At last month’s NetPlus Alliance Annual Meeting (which was phenomenal), NetPlus Alliance President Jennifer Murphy talked about the Twenty Mile March, the NetPlus Business Index, and how we performed as a group in 2014. I will highlight a bit of that information here. Going forward, I will send a letter to the owners and executives of our distributor members on at least a quarterly basis with updates on how we are doing and what our index is showing about the performance of our industry and our group purchases.

About a year and a half ago, I was trying to come up with a way to measure our performance against that of the industry in a consistent manner on a quarterly basis. The various published data from our associations and the census bureau just didn’t seem to work. As a result, I created our own NetPlus Business Index. This index tracks nine publically-traded distribution companies, including Fastenal, Grainger, and MSC.

Since public companies have to report consistently quarter-over-quarter and year-to-date growth against the prior year, these reports provide the data to build our

index. Each quarter, I average these two data points and measure that against our performance. The only adjustments I make to the data are when one of the participants makes a major acquisition that severely skews the data.

So how did NetPlus Alliance do?

In each quarter of 2014, NetPlus grew more than the average of the nine distributors. For example, in the fourth quarter, they grew by 10.0% over the fourth quarter in 2013, and NetPlus, as measured by the sales of our suppliers to our distributors, grew by 15.0%. So we exceeded the industry average by 50%. For the year 2014, the NetPlus Index was 8.0%, and NetPlus member purchases were 13.4% greater than 2013; 67% better than the industry.

In my first letter to the owners and executives of our distributor members, I will discuss in greater detail what the Twenty Mile March is all about, but in a nutshell, it calls for consistent, intelligent, and rigorously-pursued performance. In other words, strive for business growth that is methodical, disciplined, and focused. Our Twenty Mile March goal is to exceed the NetPlus Business Index by a consistent 35%. We did that at year end 2013 (80%), in each quarter of 2014, and at year end 2014 (67%). Our goal for 2015 and beyond is to continue to exceed the industry by 35% and to grow our business both organically with increased attention to member engagement through continuing education opportunities and regional planning meetings, as well as strategically by adding quality distributors and exceptional supplier programs.

Thank you for your great performance in 2014 and watch us grow in 2015! If you have any comments or questions about the Twenty Mile March or the NetPlus Business Index, please contact me at Dan.Judge@netplusalliance.com.

P3

ChaIrMaN’s ColuMN -by Dan Judge Chairman & CFO

CoNteNtsAlfa Tools ............................................................2Chairman’s Column .............................................3DDI System .........................................................4Motorola .............................................................4Tool Talk ..............................................................5Louisville Ladder ..................................................6Osborn ................................................................6Group Updates ....................................................7ERB Safety ..........................................................8Featured Supplier: Milwaukee Tool..................92014 Award Winners .................................... 10-11DrillCo Cutting Tools ...........................................12JPW Industries ...................................................13Schedule of Events ............................................14Distributor Pulse ................................................15Schrader ...........................................................16Annual Meeting Photos ......................................17ORS Nasco........................................................17Robert Bosch Tool Corporation ...........................18The M. K. Morse Company .................................19Intertape Polymer Group (IPG) ............................20Legend Valve & Fitting ........................................20

May 2015

20 MILE MARCHNETPLUS GROWTH

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P 4

First and foremost, I’d like to express a sincere thank you to each of the supplier companies

that attended and supported our recent annual meeting. The event would not have been as successful without your support. We’re excited about the year-over-year growth that was realized from the companies that attended our meeting in 2014 and looking forward to keeping it rolling through 2015.

Over the past several issues, I’ve been highlighting the newest NetPlus supplier partners. Along with that, and since I’m writing this article on a Thursday, I wanted to include a Throwback Thursday highlight of two of our oldest legacy supplier partners, Epicor Software Corporation and Boss Manufacturing.

Epicor has one of the longest active tenures of all NetPlus supplier partners, including both business service providers and product suppliers. Epicor joined NetPlus in September 2002. As one of the most prominent distribution ERP systems on the market today, Epicor offers the full spectrum of solutions for industrial distributors, including advanced demand forecasting, consignment, strategic pricing, mobile solutions, and EDI. Epicor offers systems for any size distributor, and its Prophet 21 software is one of the most well-known ERP systems for industrial distributors.

Boss Manufacturing, the country’s oldest glove manufacturer, having been in business over 120 years, joined as a supplier partner in October 2002. Boss continues to develop innovative hand protection for heavy industrial and construction applications. In addition to gloves, Boss is a supplier of protective eyewear, rainwear, boots, safety vests, and aprons. If your company has a strong retail/walk-in business, Boss offers a wide variety of retail tagged gloves for display. Boss is also the exclusive licensee of the Caterpillar brand.

One of our newest supplier partners is Hooker Handling Systems/ArmorToes. ArmorToes are steel-toed overshoes designed for the temporary, part-time or

even full-time industrial worker. They are perfect for facility visitors to use during plant tours. I’ve personally visited many manufacturing plants and have worn various types of “over-the-shoe” style toe protectors. ArmorToes are by far the most comfortable style I’ve worn. They feature a slip resistant tread design and come in eight color-coded sizes for easy identification. Special terms for NetPlus members include a low minimum order requirement of five assorted pairs. This could be some good add-on business that can keep your customers compliant with protective shoe requirements.

Bon Tool joined as a supplier partner effective March 1st. Bon Tool is a leading manufacturer of tools for the professional building trades. The company offers over 5,000 tools in dozens of categories, including masonry, asphalt, roofing, concrete, drywall, flooring, and carpet. It’s easy to do business with Bon Tool because there is no minimum order and low $900 prepaid freight terms on many items.

Have you ever been in a manufacturing facility and noticed those heavy duty clear vinyl sleeves that protect the paper work orders? You’ll see them hanging on bins with parts to be machined or on finished products. C-Line Products is the manufacturer of these and many other types of plastic storage, identification, and organization items, including badge holders, power cord covers, lanyards, shelf labeling strips, and more. The NetPlus program with C-Line offers distributors a competitive advantage to source versus purchasing these items through an office products reseller.

ProBuilt Professional Lighting offers a wide variety of temporary fluorescent and LED jobsite lighting. The originators of the virtually indestructible Wobblelight, ProBuilt has expanded its line considerably to offer over 85 individual items. Its products are not only for use on the construction jobsite, but are also used in all types of industrial applications, emergency preparedness, utility companies, and railroads. 75% of ProBuilt’s product offering is LED lighting, which is more durable and delivers longer life than incandescent. Be sure to check out their offering of TORCHES LED flashlights, too.

More details about these new suppliers, as well as more information about our complete line of supplier partners, can be found on their individual program pages in the NetPlus Member Portal. If you have any suggestions for new supplier partners, please contact me at Todd.Washburn@netplusalliance.com.

tool talk-by Todd Washburn

VP of Supplier Development

P5 May 2015

P6

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Group updates

Maximize Your Return

Points Plus is a system to measure your participation with NetPlus Alliance and ultimately reward the most engaged members with the highest rebate return.

How it works:��Engage with NetPlus Alliance

��Convert and Grow with NetPlus Suppliers

��Accumulate Points

�� Increase Your Engagement Score

��Earn Your Participation Status

��Maximize Your Rebate Return

Kerry AtlasVP of Finance & IT

We are excited to announce Kerry Atlas as the new Vice President of Finance and Information Technology (IT). Kerry brings a wealth of experience to NetPlus Alliance, with over 19 years of experience in business and a strong financial background.

Shirley WeilandAsst. VP of Operations

We are also pleased to announce the appointment of Shirley Weiland to Assistant Vice President of Operations. “Shirley has proven herself to be an invaluable member of our team, wearing many hats and executing her responsibilities to the highest standards,” adds NetPlus President Jennifer Murphy.

You have a Points Plus calculator on your account in the Member Portal that will track the points you earn based on the following NetPlus activities:

��Purchase dollars with NetPlus Suppliers

��Count of active NetPlus Suppliers

��Attendance at the NetPlus Annual Meeting

��Participation at NetPlus-hosted trainings

��Attendance at NetPlus Regional Planning Meetings

Accumulate points to improve your engagement score and maximize your rebate payout. Participation levels are Bronze, Silver, Gold and Platinum.

Login to the Member Portal to track your participation status.

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Featured supplIer

Grow Together - 2014 Marketing Excellence AwardRobert Bosch Tool Corporation

Be The Best - 2014 Supplier MVP AwardJPW Industries

Embrace Change - 2014 Distributor MVP AwardOhio Power Tool

P 10

aNNual MeetING

Value Relationships - 2014 Partnership Excellence Award

Allan GuthrieDXP Enterprises

Dan Judge Founder's AwardKim ReynoldsThe M.K. Morse Company

P11 May 2015

2014 award wINNers

C

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P 12

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P 14

Go to www.netplusalliance.com/events for more information

sChedule oF eveNts

Continuing EducationSoutheast Summer Session: June 9-11 Fall Session: October 6-8 JPW (JET-Powermatic-Wilton) Industries Training Nashville, Tennessee

JET and Wilton would like to invite members of your sales team to their 2014 JET and Wilton Training Center. This is an opportunity for members of your team to receive hands-on training with key members of their product teams.

Southwest September 15-16 Lawless Group Multi-Supplier Training Dallas, Texas

The Lawless Group serves manufacturers of construction, industrial and safety products and will offer a multi-NetPlus supplier training with classroom and hands-on instruction.

Regional Planning Meetings

Regional planning meetings allow the opportunity for our local distributors and supplier sales people to engage in 20 minute planning meetings to discuss marketing and opportunities for growth.

Midwest July 21 Livonia, Michigan

Southeast October 6 Charlotte, North Carolina

Annual Meeting

October 2-4, 2016Hyatt Regency Hill Country Resort & SpaSan Antonio, Texas

The NetPlus Alliance Annual Group Meeting is an opportunity for all NetPlus members to gather, learn, share and really flex the power of our Alliance. NetPlus distributors and suppliers establish connections and attend scheduled business appointments. Learning and sharing is the focus, and attendees benefit from marketing and sales planning, breakout sessions hosted by NetPlus suppliers, networking, social events and much more.

As part of your NetPlus membership, we are pleased to offer the following networking and training opportunities for 2015:

NE T

P L U S A L L I A N C E

C O N T I N U I N G E D U C A T IO

N

Have you ever noticed there is a connection between what and who you know and the results you achieve?

If you read the article on the front cover, you know that NetPlus Alliance continues to exceed our growth goals! Specifically, distributors that have attended NetPlus events over the past three years have reported and are continuing to report impressive above average results. The investment that they have made in their business by attending these events is truly paying dividends.Hopefully, you have noticed our efforts to drive engagement between our supplier partners and distributor members by increasing the number of NetPlus-hosted events over the past three years. These events include continuing education opportunities, such as hands-on individual supplier and multi-supplier trainings and online webinar trainings, as well as an annual meeting, and regional meetings. There is a lot of excitement about participating in these events so I wanted to outline what was available. A schedule of our upcoming continuing education opportunities and regional meetings can be found on page 14, as well as in the NetPlus Member Portal under the Info Center Tab.Continuing Education OpportunitiesIndividual supplier trainings are held at the supplier’s training facility and facilitated by the supplier’s training staff. These are hands-on training sessions where you use the supplier’s tools and products so you understand the value, unique features, and benefits, as well as so you know how to sell the correct item with confidence and expect respectable margins because you are solving your customers’ needs. The length of the training varies by the product offering, but typically, most trainings last about two and a half days with a limited class size so everyone has the opportunity to learn. There is no cost to the distributor for the training.Multi-supplier trainings are held around the country and are located at facilities that support both classroom and hands-on training. They feature about 10-12 suppliers and are presented by the suppliers’ training staffs. The

intent is to cover a product category and be less brand-specific, but you will absolutely leave with the knowledge of specific brand features and benefits so you can sell the presenting NetPlus supplier’s brand. The length of the training is about one and a half days with a limit on class size, and again, there is no cost to the distributor for the training.Online webinar trainings. Some subjects can be covered individually in a short online training leveraging the use of the Internet. These feature one supplier or subject at a time with a visual online presentation and interactive conference call that allows for questions. While not hands-on, you will learn what you need to know in a short period of time without leaving your office. These are recorded for future reference and stored online in the NetPlus Member Portal. Consider the value of going to make a sales call and reviewing an online video about what you need to know right before making the presentation. Annual & Regional MeetingsRegional meetings are held around the country at a hotel meeting space that sets the tone for a professional environment. Approximately 12 distributors and suppliers have table-top meetings with one another typically in one day to plan growth with current suppliers, target new suppliers, or discuss converting existing business to a NetPlus supplier so the purchases remain within the group.Our annual meeting is our national gathering of NetPlus supplier partners and distributor members held at a resort location with easy access from around the country. Approximately 100 distributors and suppliers have scheduled table-top meetings to strategize growing their business with one another, as well as to target new relationships. The length of the meeting is two to three days, based on travel and events, and the meeting provides many opportunities to grow your business, expand your relationships with NetPlus partners and members, and have some fun in a beautiful location.Remember you score points as part of the Points Plus Program by attending NetPlus events, which allows you to earn a higher rebate payout!Consider the power of knowledge and relationships that these events afford you, along with the respect you can earn from your customers by having knowledgeable staff and having the right relationship with your suppliers, and then plan to attend an upcoming event so you can harvest your rewards. If you have any comments or questions, please feel free to contact me at Paul.Byrnes@netplusalliance.com.

dIstrIbutor pulse-by Paul Byrnes

VP of Distributor Development

P15 May 2015

P16

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