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 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…..

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

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

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

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

“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

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

“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

LAIRD VENDOR VALUE PROPOSITION 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

Remember Vince Lombardi…

Understand and Ruthlessly Execute on the Basics

Communicate endlessly until all parties understand everything

Take nothing for granted