NetPlus Exchange January 2016

January

2016

Newest MeMbersSuppliers• EdgeEyewear• LogisticsPlanningServices• Megapro

• SaalfeldRedistribution• SafetyMarketingServices• SuperiorAbrasives

Issue Features

Distributors• BlackwoodSupply• BlythevilleIndustrialSales• CiceroSupply• SingleSourceSupply

• TekkSupply• ToolFactoryOutlet• TripleTSupply• WichitaIndustrialSales

P16 Points Plus Program UpdatesGrowth Plus ProgramP7 WiltonP10 P11–

The books are closed on 2015, and it was an interesting year to say the least. I am a true believer that the challenges make us better, and this is what I heard from several of our members. I participated in a webinar with Industrial Distribution magazine last month, and to prepare, I interviewed distributors from different regions around the U.S. Despite the downturn in the oil & gas industry, many NetPlus members are taking a proactive approach and have found a new mantra: diversify.

From the Midwest down to Texas, distributors are turning over every rock to find new business and preaching to their salespeople: “Put everything on one PO!” Our members are working closely with existing customers and finding opportunities in janitorial and safety supplies to add-on to their regular MRO orders. Did you know that companies are seven times more likely to win sales opportunities from a current customer than a new customer? Developing a new customer is also six times more expensive than growing revenue from an existing account. Perhaps this is why many of our NetPlus suppliers are expanding their lines and bringing complementary products that are price competitive to the big guys’ private labels. The NetPlus Supplier List has been expanding to accommodate your customers’ needs. See Todd Washburn’s article on page 13 to read about some of our new NetPlus supplier partners.

We appreciate the feedback that you provide to help us improve our programs. At the suggestion of one of our members, we have updated the Points Plus Program to include a point total for the Diamond Level, and we removed the 50 supplier minimum. New tiers have been added to the purchases qualifications, rewarding those distributors that continue to grow their participation in the group. See page 17 in the newsletter to see the updates to the Points Plus program. If you want to get to the next level, the best place to start is by attending the NetPlus Annual Meeting, Oct. 2-4 in San Antonio, Texas. Companies that attend are awarded 25 Plus Points, but the benefit to your business is much greater. Our Annual Meeting attendees meet with current and new NetPlus suppliers, participate in sales planning and product education sessions and network with fellow members. Make this your best year yet: be nimble, fill the gaps, demonstrate value, continue to develop loyalty with your customers and let’s Grow Together in 2016! -JenniferMurphy,President

Over the past few months, I have spent a lot of time being a “caregiver” to my 92 year old

cousin, Sam Ward. Sam was the president of our company from 1959 to 1986 when it was known as Ward, Beals & McCarthy. I am his closest relative and have been watching over him for a number of years. While he is pretty independent and lives at home, I have been doing things like taking care of his finances, taking him out to lunch or dinner, and driving him to his doctors’ appointments. When I’m not here, Jennifer has been an excellent substitute.

But six weeks ago, his doctors recommended that he get a new valve in his heart, utilizing the TAVR (Transcatheter Aortic

Valve Replacement) procedure. It was then that I really learned what a caregiver is. This involved numerous trips to the Gates Vascular Institute at Buffalo General Hospital for preliminary testing and finally, the procedure. But five days later, Sam was back home, and in the words of his visiting PA, he’s doing fantastic and has a much more efficient “pump.”

As I was coming back from his house the other day, I decided to write my newsletter column on “giving.” Winston Churchill once said, “We make a living by what we get, we make a life by what we give.” As I was in the hospital all day during Sam’s TAVR procedure, I saw so many people that were caregivers to family members and friends. I think it shows what a special society we live in.

Sam also taught me along the way that there are other kinds of giving. The most obvious, especially this time of year, is financial giving. Whether large gifts or small ones, it is important to financially support those causes you truly believe in. My choice is to give to local agencies and organizations that I know personally, and I make sure that a high percentage of my gift goes to the programs the organization supports. As Charles Dickens said, “No one is useless in this world who lightens the burdens of another.”

The final type of giving that I think is important is giving your time. In every community, there are dozens of organizations that need volunteer help in all sorts of ways, and I’m sure you all know about these opportunities. Consider offering your time and talents and that of your employees to some of these organizations. It’s often said you get much more back than you give.

One of the Core Values of NetPlus Alliance is “Do the Right Things, Right.” I believe giving is covered very well in that Core Value. For all of you that are already giving, thanks and keep up the great work!

As always, please contact me at [email protected] if you would like to share any of your own stories about giving.

P3

CoNteNtsAlfa Tools ............................................................2Chairman’s Column .............................................3C.H. Hanson ........................................................4Louisville Ladder ..................................................5ERB Safety ..........................................................5Distributor Pulse ..................................................6Growth Plus .........................................................7Florida Pneumatic ................................................8DDI System .........................................................8Drillco Cutting Tools .............................................9Featured Supplier: Wilton Tools ..................... 10-112016 Annual Meeting ........................................12Brighton-Best International .................................12Tool Talk ............................................................13The Meaning of Facetime ...................................14Clarus Merchant Services ..................................15Points Plus ........................................................16Tech Tips ...........................................................17Schrader International .......................................18Proto Industrial ..................................................19M.K. Morse .......................................................20CLC Work Gear ..................................................20

JaNuary 2016

ChaIrMaN’s ColuMN -by Dan Judge

Chairman & CFO

P4

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Net Plus half page CHHanson.pdf 1 11/12/2015 11:26:04 AM

P5 JaNuary 2016ERB_NetPlusAwareWearAd_11_15.indd 1 11/12/15 11:05 AM

P6

Rememberwhenyoubecametheleaderofthebusinessordepartmentyouruntoday?

Maybe you started the business, worked your way up through the ranks or took over the family business. You worked hard to become a leader and achieve this new responsibility. As you began your journey as the leader, you most likely had some ideas that you wanted to implement. Maybe update the business, move it forward, make it a great place to work, increase revenue and enhance the value of the business. Many of those ideas, that became part of the DNA of your organization, became reality because of a plan you put in motion that drove the actions necessary to deliver the intended results. You may have targeted improving customer service, adding a new supplier, customer or product category, or improving profit margin or a process, but if you think back, it is highly unlikely that these things happened on their own. You had an idea and outlined a plan to reach those goals. The plan may have been simple or complex, and you may or may not have written it down, but there was a plan.Ideaswithoutaplanaresimplyideas.Ideasthatbecomeaplandeliverresults.

To many people, the words “develop a plan” feels like a task they would rather not do. They know plans deliver results, but to many, the thought of building the plan sounds difficult, even though they desire the results. A plan creates accountability. It allows us to test what we think will work, and then as we execute our plan, we find out if it actually provides the results we intended.

Like you, we understand the value of planning, as well as the task-like feeling that comes along with building a plan. BasedonthesuccessofourexistingSalesPlanner,werecentlylaunchedtheGrowthPlusProgram,animprovedplanningguidethatwalkssuppliersanddistributorsthroughaneasy-to-followstep-by-stepplanningprocessthatmakesplanningfeellesstask-like,sotogetherwecandriveresults!

HowItWorks:• Target NetPlus Suppliers• Create a Market Plan

• An outline of what is happening at your business and in your industry that would interest suppliers

• Choose a Planning Path• Either your management team or

your company’s employees select activities to execute

• Select Suggested Activities • Choose a manageable number of

activities from a list of over 40 or add your own!

• Execute Those Activities • Adjust your plan as needed

• Achieve your Goals• Build Lasting, Supportive Relationships• Enjoy the Results!

Distributors often tell me that gaining the attention and support of suppliers is increasingly difficult in today’s market. Supplier representatives are busier than ever. Today, many suppliers have a limited staff covering a larger geographic region than in the past with many corporate driven responsibilities that consume large portions of their representatives’ time. Buildingandworkingthroughasalesplanthatdeliversresultsisagreatwaytogainandholdtheattentionofyoursupplierrepresentatives.

Set aside some time to review your business for challenges that exist maybe because of the limitations of your business or a competitor’s product line or product category or review your business for new opportunities based on a new employee’s knowledge or a change in your market. Then, target a new supplier or one that you already do business with but could grow exponentially with if you worked together, and ask them to build a Growth Plus plan with you. Share your Market Plan with them, so they understand the opportunity and why you are the right distributor to work with, and then enjoy the process, along with the enhanced relationships! I can assure you it feels great, and your experience this year will make planning in the future even easier and more rewarding.

Whatiskeepingyoufromplanningyourgrowth?

If you have any comments, questions or suggestions about the Growth Plus Program, please contact me at [email protected].

DIstrIbutor Pulse-by Paul Byrnes

VP of Distributor Development

P7 JaNuary 2016

Growth Plus is a sales planning program designed to enhance partnering between NetPlus distributor members and supplier partners. Target the suppliers that you want to grow with and then collaborate with them one-on-one to build a plan for growth, leveraging our outlined process.

Activities & Results

Growing Your Sales & Enhancing Your Relationships

During Reconciliation Process

�Create a Market Plan �Choose a Planning Path (JMA or FAM) �Select Activities

Login to the Member Portal at netplusalliance.com to utilize our Growth Plus sales planning tools and keep track of your activities!

�Above Average Financial Results �Increased Attention From Suppliers �Enhanced Relationships

�Strong & Effective Partnerships �Differentiation from Other Distributors �A stronger NetPlus Alliance

P8

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P10

AND WE’RE CELEBRATING ALL YEAR WITH SPECIAL ANNIVERSARY KITS AND PROMOTIONS!

It was 75 years ago when Wilton® designed the

first Bullet-Design machinist vise and created the

groundwork of quality craftsmanship from which

the Wilton brand would rise. As it was in 1941, so it

remains now. The same high level of workmanship

is in every tool that bares the name Wilton®.

WILTONTOOLS.COM CONTACT YOUR JPW REP FOR DETAILS ON ALL 75TH ANNIVERSARY PROMOTIONS

SAVE UP TO

31% ON B.A.SH®

SAVE UP TO

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FeatureD suPPlIer

P11 JaNuary 2016

AND WE’RE CELEBRATING ALL YEAR WITH SPECIAL ANNIVERSARY KITS AND PROMOTIONS!

It was 75 years ago when Wilton® designed the

first Bullet-Design machinist vise and created the

groundwork of quality craftsmanship from which

the Wilton brand would rise. As it was in 1941, so it

remains now. The same high level of workmanship

is in every tool that bares the name Wilton®.

WILTONTOOLS.COM CONTACT YOUR JPW REP FOR DETAILS ON ALL 75TH ANNIVERSARY PROMOTIONS

SAVE UP TO

31% ON B.A.SH®

SAVE UP TO

38% ON VISES

SAVE UP TO

32% ON CLAMPS

wIltoN

Brighton-Best International Proferred Hand Tools

P12

saVe the Date 2016 NetPlus allIaNCe aNNual MeetINgOctober2-4,2016HyattHillCountryResort,SanAntonio,TX

saVe the Date 2016 NetPlus allIaNCe aNNual MeetINgOctober2-4,2016HyattHillCountryResort,SanAntonio,TX

DistributorregistrationopensApril1,2016!Stay tuned for more details and be sure to check your email.

earN 25

PoINts Plus!

P13 JaNuary 2016

I hope everyone had a wonderful holiday season and was able to enjoy some time with family and

friends. The last couple weeks of December can be stressful when you are working hard to close out your business year. I recall years ago, before the acceptance of cycle-counting, we used to do a company-wide year-end inventory near the end of December. Although that was probably the most hectic, dreadful time of the year for me, the time spent with my family in South Dakota was the reward. I’m thankful that my days of physical inventories are gone, but yet I have to admit that the final days of December have been busier than ever at NetPlus. We have some exciting new programs that we’ve developed to help our distributors and suppliers grow their businesses together. You can read more about the new Growth Plus Program, as well as the revised Points Plus Program, in this issue. We’ve had a number of new distributor members come on board, in addition to several new supplier partners. I’ll highlight the new suppliers effective in November, December and January.

MasterChemical partnered with NetPlus Alliance effective November 1st. It is a premier single source supplier of metalworking fluids and equipment. Its product offering consists of TRIM cutting and grinding fluids, Master STAGES cleaners, corrosion inhibitors and surface treatment additives, as well as XYBEX fluid recycling equipment. Trim metalworking fluids are known for their superior performance and meet the demands of specialized industries, such as aerospace, automotive and medical parts manufacturing. The Master STAGES surface treatments consist of cleaners and corrosion inhibitors to keep your customers environmentally compliant and more profitable. In addition to being pioneers in coolant technology, the company also invented systems for recycling coolants and cleaners. A fluid management and recycling program using Master Chemical’s XYBEX equipment pays for itself with savings in disposal costs, material costs and downtime.

EdgeEyewear, a brand of Wolf Peak International, was founded in 1998. Since then, the company has grown from its operations in a small,

rented basement room to a recently expanded 27,000 square foot office/warehouse. Pioneers in innovative and designer-styled, safety-rated eyewear, Edge Eyewear continues to lead the industry with not only some of the highest quality products, but certainly some of the most stylish and most comfortable options. It was the first company to product polarized, safety-rated eyewear and promote into markets that no other safety eyewear manufacturers had been. The Edge Eyewear products consist of hundreds of safety glass style options, including men’s designer styles, women’s designer styles, polarized and non-polarized styles, as well as many with replaceable lens options. There are 4 goggle style options that feature flexible frames and comfortable straps. Check out its website for some excellent product information, technical details and videos showing just how safe the company’s products are.

Megapro is a USA manufacturer of industrial quality multi-bit screwdrivers. For over 20 years, the company has been designing the toughest professional-grade screwdrivers available. It offers over 20 variations of its product, ranging from standard Phillips bits to square drives to specialty tamper-proof tools. Its screwdriver models include up to 15 different bit options. Megapro also carries accessories, such as an LED light clip, a holster and an LED work light.

SaalfeldDistribution is a wholesale re-distributor of janitorial, paper and sanitary maintenance supplies. Saalfeld’s dedicated team of national account specialists is available to support NetPlus distributors and help you grow your business within your current customer base. Its Room to Grow Industrial Market survey resource is easy to use and helps a distributor ask the right questions to find opportunities for new sales.

SuperiorAbrasives has been in business nearly 55 years, producing specialty abrasive products. In the 1990s, Superior Abrasives developed a fully automated quick change production and is one of only four companies with high production capabilities. In 2000, the company focused on developing a vast non-woven program and educating distributors and then end-users on the benefits of those tools and techniques. This focus on product and education at the end-user level can help develop pull-through business for NetPlus distributor members.

I want to wish all of our distributor members and supplier partners a prosperous 2016. If you have any questions about any of these new suppliers or any suggestions for potential new suppliers, please contact me at [email protected]. Let’s keep it rolling!

tool talk-by Todd Washburn

VP of Supplier Development

P14

Each day, over 205 billion emails are sent, and over 500 million tweets are posted on Twitter. Each

year, NetPlus Alliance facilitates over 4,000 face-to-face interactions between its distributor members and supplier partners, and that is just as, if not more, valuable than billions of emails and countless posts on social media. While it is important to effectively utilize new technology and social media, it is also important not to lose sight of the value that face-to-face interactions can provide. In this industry in particular, face-to-face interactions are necessary for building and creating sustainable, long-term relationships.

As an intern at NetPlus Alliance, I watched Paul Haber, who has been in the industry for over sixty years, call our distributor members, and I remember wondering why he was calling them and not emailing them. This was my first taste of the industrial distribution industry. Watching Paul call our members and interact with them over the phone, rather than via email, taught me true relationship building.

It is possible to effectively communicate online, but this communication does not replace the richer, face-to-face interaction that takes place when you communicate with another individual in person at a meeting, dinner or other networking event. This type of communication helps you really get to know your business partners, customers and vendors in their true, most comfortable state and allows you to build a level of trust with them. And as we all know, this industry is full of individuals that have worked at multiple companies and need to maintain these genuine, long-standing friendships in order to progress in their profession.

NetPlus Alliance facilitates face-to-face interactions through an annual meeting, regional meetings, and a continuing education program

that includes supplier-specific product trainings for distributor members, as well as multi-supplier workshops.

After working in this industry for approximately 3 years and attending 7 conventions, 3 marketing development conferences, 2 NetPlus Alliance Annual Meetings, 2 hands-on training events and last year’s Emerging Leaders conference, I now understand the value of face-to-face interactions. However, while face-to-face interactions are extremely important, they need to be coupled with a targeted and smart nurture approach. There is no one size fits all approach anymore. It is about customization and finding the right mix. What I do know is that you should not send an email without a follow up approach in mind. At the same time, you should not make a phone call without a functioning website because that is exactly where the person you call is going after, or during, your call.

Along with the face-to-face interactions mentioned above, NetPlus also utilizes new technology and social media in order to enhance these relationships. This includes an outward-facing Member Portal that allows suppliers and distributors to find an abundance of information, as well as a platform that allows targeted and triggered emails and social postings.

In the digital age, we are more connected to our customers and partners than ever, but we cannot lose sight of the fact that digital and personal must work in tandem in order to be successful and keep our relationships strong.

As part of your NetPlus Alliance membership, we offer a variety of meetings, trainings and other networking events throughout the year located in various regions of the country. To view a complete list of the events that we have planned for 2016, please visit our website at netplusalliance.com/events. Sign up to attend one of our upcoming events and experience the true meaning of FaceTime by interacting with our supplier partners, our distributor members and the NetPlus staff! If you have any questions about these events or other ways you can increase your face-to-face interactions, please contact me at [email protected].

the true MeaNINg oF FaCetIMe-by Zach Brado

Marketing Manager

P15 JaNuary 2016

NE T

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

P O I N T S P L U S P R OG

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Purchases through NetPlus PointsMore than $3 Million 120Between $2,000,001 and $3 Million 95Between $1,000,001 and $2 Million 75Between $750,001 and $1 Million 60Between $450,001 and $750,000 50Between $300,001 and $450,000 40Between $200,001 and $300,000 30Between $150,001 and $200,000 25Between $100,001 and $150,000 20 Between $75,001 and $100,000 15Between $50,001 and $75,000 10Between $15,000 and $50,000 5Less than $15,000 1

Points

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RA

M Maximize your return.

Log In to the Member Portal at netplusalliance.com for your Points Plus status and learn more about how you can get to the next level!

P16

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Points

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

You will 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, Platinum and Diamond.

New for 2016!Earn 150 total Plus Points and attend the NetPlus Annual Meeting in that calendar year to achieve Diamond Status. We have recently updated this program by adding new tiers to the purchases qualifications to reward those distributors that continue to grow their participation in the group. Additionally, we have set a point total for the Diamond Level and removed the 50 supplier minimum.

AM

Participation Status Total Points:Engagement Score

Diamond* 150+

Platinum 75 - 149

Gold 50 - 74

Silver 25 - 49

Bronze 0 - 24

*Must attend NetPlus Annual Meeting in that calendar year.

AM

Participation Status Total Points:Engagement Score

Diamond* 150+

Platinum 75 - 149

Gold 50 - 74

Silver 25 - 49

Bronze 0 - 24

*Must attend NetPlus Annual Meeting in that calendar year.

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Points

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P17 JaNuary 2016

We hope everyone has enjoyed a happy holiday season! The month of January is a time of

new beginnings in both our personal and professional lives. It helps to note that the days are getting a little longer every week. As the days get longer, please consider ways that NetPlus Alliance can help you to continue to grow your business throughout the coming year. You can find many resources for growth and for monitoring growth in your NetPlus Alliance Member Portal.

Speaking of beginnings, Monday morning is a great time to login to the Portal to check your Points Plus status. After supplier reports have been imported throughout the week, your Points Plus score is recalculated every weekend. This is visible in the chart on your home page and detailed in the Points Plus Status tab. This information shows your current participation score and what steps can be taken to improve upon that score in the year ahead. We will continue to increment and display your 2015 Points Plus score until reporting and reconciliation are completed for 2015. When we roll over to 2016, you will notice some changes in the Points Plus evaluation formulas. We are adding plateaus to the upper end of the Purchases scale. This creates a more logical and measureable progression to the Platinum and Diamond levels.

While you are in the Portal, check out the Supplier programs tab. Some of our long-term members probably recall when we published our programs in a binder and sent updates as they occurred. The Supplier Programs tab in the Member Portal is a much more fluid and ever-changing resource. Todd Washburn is working constantly with our suppliers to bring new value to our group. Throughout 2015, 30 new supplier programs have been added to the NetPlus Alliance offering. In addition, over

20 programs have been upgraded to make them more beneficial to our distributors. It makes sense to check the Supplier Programs tab on at least a monthly basis. You can even sort by Last Revision Date to locate the most recently upgraded programs.

You can potentially grow your business indirectly by visiting the Select Product Focus tab. With a few clicks of the mouse, you can identify the product groups that most interest your company. Suppliers will be able to search by Product Group to locate distributors who are most interested in the products they provide.

Those of you who are entrusted with the Reconciliator role for your company should be setting aside time to review your annual purchases with each of our NetPlus suppliers. Though reconciliation has been in progress throughout the year, this final reconciliation is your last chance to make certain you receive a rebate on all your purchase dollars through the group. We will probably continue to receive fourth quarter reports for a few more weeks. The best approach is to reconcile the accounts that are showing a “Last Month In” value of 12 and check in weekly to catch suppliers that report a little later. Like most of us, suppliers are in the midst of closing out their year and are doing their best to provide accurate reporting in a timely fashion.

January is also the time when NetPlus Alliance plans most of the major events for the coming year, including regional meetings, training events and, of course, our Annual Meeting. Once dates and locations are finalized, a schedule of events will be published in the Member Portal. After you have attended our events, the Account and Contact tabs provide quick access to contact information for people you have met.

The Portal is first and foremost a tool to build engagement among our members. We hope that you find it very useful as your company continues to grow with us! If you have any questions about how to use any of these features in the Portal, please contact me at [email protected].

teCh tIPs-by Karl Tschaepe

Director of Technology

P18

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P19 JaNuary 2016

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NetPlus Exchange January 2016

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Transcript of NetPlus Exchange January 2016