The information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

ERP Supply Chain Challenges – Distribution Solutions

Barry McGlew

March 20, 2014

2 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

WESCO Profile• Fortune 500 Company (NYSE: WCC)

− $7.5B sales - $1B+ in utility− Headquartered in Pittsburgh, PA− Approximately 9,200 employees − Approximately 475 locations in 18 countries

• A leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services− Serving over 65,000 customers− Partnering with 18,000 suppliers− Over 1 million different products shipped annually

• International operations and global sourcing capabilities

VISION

Global Leader of Supply Chain Solutions that consistently delivers

Superior Customer Value and Shareholder Returns

-----------------Known for the best customer service and the best people

Providing customers the products and supply chain

services they need for MRO, OEM, and Capital Projects

VALUE PROPOSITION

3 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Global Footprint

…supports expanding with customers around the world

Headquartered in Pittsburgh, PA | 9,000+ employees | 475+ locations

WESCO locations

4 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

WESCO Branches

• 60+ dedicated utility locations

• Branch inventory is tailored to meet local demand

• Flexible, time-sensitive delivery by local WESCO vehicles

• Late order cut-off times for same-day shipment

• Emergency shipments direct to customers

• Emergency 24/7 service is available

475 Branches in North America and select international locations

5 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Does anyone recognize this #@#$?

6 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Storm Response – Hurricane Sandy

• 17 states impacted

• 8M+ power outages

• 14 IOUs impacted

• Assistance crews brought in from over 50 utilities and contractors

• Three week primary restoration effort

WESCO Response

• Provided 24/7 restoration support for Alliance customers as well as support for other customers

• Rotated over 30 WESCO employees from across the country to support the restoration efforts

• Over 40 WESCO branches engaged in restoration program

− 9 Utility branches in impacted area

− 20 Utility branches outside of impacted area

− WESCO DC and I/C branch support

• Leveraged national inventory – branch and strategic alliances

…demonstrates our commitment and ability as a first responder

7 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Hurricane Sandy – Distribution Solutions

• EVERY FUNCTIONAL GROUP ACROSS WESCO SUPPORTED THE RESTORATION EFFORTS

• Drivers, Warehouse Professionals, ISRs, MMP and MRO Sourcing Group

• Pre-storm preparation and execution of the branch checklist

• Twice-a-day conference calls starting October 25, 2012

• Leveraged our alliance relationships to source and ship material – Entergy, FPL, Progress, Duke, MidAm, NW Energy, SCE&G, CLECO, OUC

• 20+ Utility Branches provided emergency shipments on Saturday and Sunday

• 30+ WESCO associates from across the country worked at the impacted Branches to provide support and relief

• 24/7 staffing to support the sourcing and procurement efforts around the clock

• Created a sourcing team of the “best technical experts” in the industry to identify alternate product solutions to assist customers

• MRO Sourcing Group provided 24/7 resourcing support

8 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Basic Utility T&D Supply Chain

Manufacturer Distributor Utility Warehouse Utility Linemen

• Scheduled deliveries

• Normal hours of operations

9 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Utility Supply Chain - ERP

• Multiple Inbound shipments – distributor and manufacturers

• Shipments to staging and lay down areas

• Creates significant bottlenecks

Outside Crews

Manufacturer

Distributor

Utility Warehouse

Manufacturer Laydown Areas

Utility Linemen

10 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Utility Supply Chain - ERP

• Engage distributor partner in the material ordering process• Communicate with distribution on material needs – allow participation in

conference call • Pre-position material in advance of the event• Identify sole sourced items – prolonged event will create significant issues

Manufacturer

Distributor

Utility Warehouse

Manufacturer Laydown Areas

Utility Linemen

Outside Crews

11 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Supply Chain Issues

Commodity Issues

• Early engagement with distribution and pre-position material

• Identify key commodity needs and initial quantities

− fuses, cutouts, automatics, O/H transformer, O/H secondary cable and secondary connectors (bolted or H-Tap)

• Sole source items or a unique industry specification

• Offshore manufacturing can add to delivery time

• Polymer insulators/cable spacers used in North East had limited availability nationally

• Foreign crews may need local utility specific materials for their trucks

12 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Distribution Solutions

Examples of Storm Kits – Initial Needs

• North contractors Kits – These kits are used to stock outside contractors for the Northern service area during ERP events. This material consist of cutouts, fuses, insulators, connectors ,splices and wedges

• South contractors Kits – These kits are used to stock outside contractors for the Southern service area during ERP events. This material consist of cutouts, fuses, insulators, connectors ,splices and wedges

• Service Kits – These kits are used to stock contractors with stock to repair the lines from poles to homes. The material consist of connectors, splices , hook drives wedge clamps tape and rope

• Scouts Kits – These kits are given to utility employees to prepare them to survey the damage area after the storm has passed. It consist of hard hats, amps, flashlights, vest, beacon light , batteries and traffic cones

• Runner Kits (also known as guard kits) – The kits are also given to utility employees and prepare them to stand guard where live lines have fallen or other dangerous situations. They are there until linesman is available to repair the lines. The material is similar to the Scouts kits.

13 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Storm Preparation

Storm Kits – Replenishment (Mid-Atlantic Utility)

14 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Distribution Solutions

Storm Kits – Replenishment (Mid-Atlantic Utility)

15 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Distribution Solutions

What Works in ERP Events

• Daily conference calls to update progress and changing needs

• Onsite distributor personnel – assist in sourcing and obtain approvals

• Key storm list to keep the focus on hot items

• On-site Standards Engineer for quick approvals

• Distributor’s ability to rotate in resources from unaffected areas to provide support

• Utilization of distributors MRO and T&D Sourcing Team Support

• Ability to reach out to USMA membership and to customers nationally to request material assistance

• Distributor’s ability to pre-purchase storm stock and deploy to impacted areas

16 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Distribution Solutions

Best Practices

• Develop process to expedite purchasing material (material may not be available)

• Work together to develop a solid transportation plan (tractor trailer vs van for hot shot deliveries)

• Develop plan/model for various types and severity of storms

• Place master order at inception of storm and release material to improve tracking and reporting

• Develop key commodity storm list

• Develop MRO/safety storm list

• Develop storm kits/trailers

17 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Distribution Solutions

Best Practices

• Develop list of “storm only” approved material

• Link all alternates to a class and stock code number

• Prolonged storm events – availability of trucks due to driver log constraints

• Utilize distribution and all available resources – develop key ERP relationship prior to these events

• Engage early in the material allocation process

18 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Distribution Solutions

Material Reclamation & Disposition

Material Reclamation & Disposition

Scope of Work Performed

• Time frame = 3 weeks

− 7 WESCO employees and 2 – 4 fork lift drivers/laborers worked 10 hour days to complete the disposition

− 90% of the material was cataloged and counted

− Valued at $3,300,000

19 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Distribution Solutions

Material Reclamation & Disposition

• Excess material

− 300+ customer ID numbers returned from 10 service centers

− 730 pallets and in 80 Ropak containers

− Material included galvanized hardware, automatic splices, cutouts, insulators, connectors, clamps, brackets, formed wire, etc

• Work performed

− Material was sorted and consolidated

− Logged into master spreadsheet with customer ID Number

− Material determined unusable for future use = scrapped

20 ERP Challenges ECNE 2014 McGlewThe information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

Distribution Solutions

Material Reclamation & Disposition

Completed Reclamation Process

The information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

ERP Supply Chain Challenges – Distribution Solutions

Questions?

The information contained herein is confidential in nature and considered proprietary to WESCO Distribution, Inc. It is intended for the exclusive use of the employees, contractors and agents of client companies. We request that no oral or written disclosure of such information be made without the prior written approval by WESCO Distribution, Inc.

ERP Supply Chain Challenges – Distribution Solutions

Thank you