Action Plan: WESCO should definitely adopt a proactive approach in managing its NA program.
A proactive approach in managing the NA program would definitely fulfill the company’s visions of becoming a $ 3 billion company with an average EBIT of over 5% by the year 2000 (from its 1996 figures of $ 2.2 billion company with an EBIT of around 3%.)
Though the current position was not conducive to continue the program further, because the company was already at a loss of complete 2% in their revenue as compared in the previous year, still looking towards a long term prospective this …show more content…
By 1997, there were 300 customers in the NA program. On the basis of sales volume and commitment, these customers were classified into three groups:
In past years, before the time of Wesco’s new ownership, all of the major customer agreements were for single products .By 1997, there were 300 customers in the NA program. The Key customers were the top fifty customers by sales volume. With each of these customers WESCO had moved beyond the single product, single site relationship and entered into some forms of multi-site relationship. WESCO also supplies EES products to these customers and some customers were even asking the company to supply non EES products. Sales of these customers were a little less than $180 million in 1996, giving the company a little less than $4 million per customer. In most of the cases the company was supplying more than 60%-70% of the customers EES needs.
The NA program is delivering value on its promises is demonstrated by the success story of WESCO’s NA program with an industrial customer in the paper segment, managed by NAM (National Account Manager) Walter Thigpen.
As soon as the agreement was signed with this industrial customer, NITs were formed and national rollout meeting was held to begin implementation.
Complete energy audits were conducted and more energy efficient systems were recommended for all the plants.
Also, inventory was reduced and EDI procurement was