Webcast Panel: The Future of Distribution

Featuring:Mike Marks, Indian River Consulting Group

Ian Heller, Modern Distribution ManagementTom Gale, Modern Distribution Management

Paul Victor, Infor

Feb. 21, 2018

Sponsored by:

Mike MarksManaging Partner,Indian River Consulting Group

Speakers

Tom GaleCEO & PublisherMDM

Ian HellerCOO & President,MDM

Paul VictorSr. Account Executive,Infor

• Welcome: The Future of Distribution

• Paul Victor – Who is Infor?

• Mike Marks – Model Change Needed

• Ian Heller – Inflection Point for Distribution

• Q&A: Digital Transformation, Analytics, Talent

Agenda

Infor’s global presence

73,000customers globally

3rd largestbusiness applications

company

200+countries & territories

14,000employees

3BRevenue (approx.)

$100Btrade in commerce

cloud

25,000 suppliers in

commerce cloud

30 banks in

commerce cloud

1,248+go lives

4,500+cloud customers

globally

1B+SKUs distributed annually

Fast Facts

17 of top 20Industrial Distributors

Years of Experience

30

About Infor Distribution

8 of top 10Electrical Distributors

Distribution customers

6,000+7 of top 10

6 of top 10BMAT Distributors

HVAC Distributors

Delivered with design thinking

INFOR STRATEGY

New tools &

technologies

Hyper focus on solving customer business problems

Expandingcustomer

expectations

Modern view of Wholesale Distributors

Potential Picture Of A Digital Distributor In 2020This distributor buys right, selling at margins below 15%, driving old school

distributors out of business because their SG&A expenses are less than 10% and they are earning a 10% EBITDA margin at the top of the cycle

• Internal adoption of digital processes• Generalist field sales reps have migrated to multichannel specialist models that rely on robust

CRM systems where quoting, pricing, customer service, purchasing, and supply chain activities have been digitized and managed centrally along with >90% LOOP* rate on all purchasing

• Digital process adoption with customers• Customers deal with you primarily through their I-Phones and tablets relying on custom reorder

catalogs, BIM drawing and project management support, live GPS location of their deliveries, and all of their transaction activities while your $100,000/year in SEO provides a great return

• Digital process adoption with suppliers• All transaction and warrantee management is performed electronically, or at least the distributor

is capable, even if the supplier isn’t; suppliers pay money for market information as the distributor has leveraged their big data capability

*Lights Out Order Processing

Where Are You And Where Are You Furthest Behind?

A Multichannel Example4. Punchouts & LOOP*

• Inside sales leads with specialists

• You have sticky customers with reliable

service• Field sales is on call, as

necessary, by your team

3. Field Sales Leads

Expand share of wallet using team members and

introducing specialists along with special

services

1. TelemarketingE-catalog or Amazon

Easy to buy & “once and done”CSE alert

2. Field Sales Leads

Prospect with provided marketing analysis on cost to

grow and potential to grow

Your value proposition is explicit and key

* Lights Out Order Processing

What % of your sales calls are on the right side of the model?

Start

2-9

Specializing The Sales Generalist Lowers Overall Selling CostsCategory

RoleFAM

Field Account Manager

IAMInside Account

Manager

ISR- InboundInside Sales Rep

CSRCustomer/Counter

Service Rep

Technical Specialist

TelesalesOutbound

Typical Titles SAM, AM, TM, FSR, OSR

AM, IAM, Segment AM ISR, CSR CSR Many TMR, TSR

Primary SOS*

Business solutions and Relationship

Technical and transactional Transactional Technical Awareness

Customerassignment Yes, by dirt Yes, by dirt or

segment Yes, by dirt or segment No Periodically, by need or project

None but working off a call list

% in field >80%Own car

Partial with ashared car

<5%No car None >50%

Own car None

% CSEs intercepted >75% Ranges from

5% to 50% <5%` 5% to 25% Sent out as they occur

CSE interception, RFM tickler

Customer Relationship Equity Role

Primary Primary Primary but often shared with Field reps Supportive Subject Matter

Expert

None.They generate activity

that warrants the attention of a rep

CustomerCapacity ~30 ~100 Several hundred <200 ~30 Set changed

periodically

* Service Outputs Supplied to your customer- what they are actually buying

2-8

• Free, two-day shipping• Inside Sales Reps• Multiple users for a single account• Search page tailored to industry• Offers from multiple sellers• Customer reviews• “Live Expert” button for tech info• Pricing/products just for business• Email confirmation w/delivery date

• Open account – 55 day, 0% interest• Revolving credit: P cards, 12.99% APR• Tax exemption• Customizable purchasing analytics• Punchout support for 54 systems• Integration to ExpenseWatch, etc.• Discounts for GPO’s, associations, etc.• >500M SKU’s in the US• Minority/women owned, etc. sorts

Amazon Business: Current Capabilities

Webcast Panel: The Future of Distribution

Feb. 21, 2018

Sponsored by:

Questions?