How is NAED helping to make its member companies more profitable? Take a look at this list of projects that we are currently working on:
- Creating standardized vendor report cards to help improve vendor performance
- Creating a task force to eliminate inefficiencies in our channel's lighting segment
- Sorting out and standardizing the SPA process to eliminate errors and help the channel become more efficient
- Developing a POS/POT standard that will help manufacturers pay their reps fairly and enable distributors to work with preferred manufacturers to grow sales and increase margins
- Delivering first-rate, unmatched, industry-specific education programs • Conducting research aimed at helping the electrical distribution channel be more successful
- Holding conference call educational programs on distributor business practices
- Developing an education course to explain distributor operations and profitability to their manufacturing partners
These are just a few of the big "it takes a whole industry" issues that NAED is working on to help your company be more successful and efficient in the future.
Inefficiencies act like vacuum cleaners -sucking the profits right off a company's bottom line. A lot of companies like to brag about their rebate checks. Well, imagine that rebate check growing in size because you are selling more stuff, but due to inefficiencies within the industry, your real profits are being sucked away. These are the issues that we're talking about.
And while most of them may seem monumental when viewed from the desk of an individual distributor, or even from the perspective of a smaller group of distributors like the marketing groups, when viewed through the eyes of thousands of distributors and manufacturers working together, it becomes apparent that there is much that can be accomplished. That, of course, is what NAED does-tackle the big, tough issues that you, your company, or your marketing group can't tackle alone.
Take IDEA, one of the electrical industry's biggest and most successful joint accomplishments. Think back a few years ago when incomplete and incorrect data was threatening to destroy the electrical distribution channel's efficiency. It was up to the leaders of NAED and NEMA to sit down and develop a solution that would help propel the electrical industry successfully into the future. It was a huge challenge. And, let me speak for NAED-and I'm sure the staffs at NEMA and IDEA would agree -the creation of IDEA was not only difficult and nerve wracking, but at times downright discouraging. There were a lot of naysayers who predicted IDEA's demise.
NAED and NEMA couldn't let that happen. IDEA is too important to the success of your business. Today, thanks to the electrical industry working together, to the cooperation of smart distributors and smart manufacturers who could see that accurate data and electronic transactions were critical to our future, IDEA is very successful. Companies are more profitable because the quality of the data they use is better-and getting better every day. IDX2 alone is cutting distributors' and manufacturers' costs drastically.
In the future, when you think about NAED and the future of your business, remember that no other organization in the electrical industry focuses so much energy and time working to make the electrical channel and your business more successful. Think about the list at the beginning of this column. Who would tackle those issues if not for NAED? Think about profits being sucked off your bottom line, and you'll remember why NAED is important to your business.
It's your business, it's your industry, and it's your association-get involved today.