WESCO COMPANY PROFILE

Founded in 3rd Largest Want to be

the year 1992 An electrical full-line As of 1996, a
recognized as
as the equipment wholesale $ 2.2 billion
the leader in
distribution supplies distributor company with
learning.
arm of distributor company in an EBIT of 3%
Adapting and
Westinghouse the US responding to
changes in
customer needs

Electrical Contractors
• Installed lighting and electrical
systems for construction projects
• $17.9 B market with $ 465 M
WESCO’s sales in 1996
• Primary customer base for WESCO
• Bid and Quote business
• Contractors required quotes from
EES distributors
• Placed the order with the distributor
quoting the lowest amount
• Possess project mentality and their
needs differ from project to project
TYPES OF CUSTOMERS:
Industrial Customers
• Ongoing need for EES products in
Maintenance, Repair and Operations
• $ 1 B WESCO’s sales in 1996
• WESCO pursues customers in
industries like utility, manufactured
structures, pulp and paper, lumber,
petrochemical, mining and metals etc.
• NA program was designed to serve
high potential industrial customers
• Require steady flow of EES products
and prefer long-term contracts
• Requires satisfactory service and
education about new products
CIG Customers
• Substantially smaller than the
other businesses
• $ 5.9 B market, WESCO’s sales 147
M in 1996
• Commercial customers: hotels
and motels.
• Institutional customers:
hospitals, universities
• These are relatively stable and
low potential customers
• Government was a source of
concentrated and very large
demand
• The one with the lowest bid gets
the order
Wesco: The Selling Story
 NATIONAL ACCOUNTS PROGRAM

• Started in 1994
Key Customers
• Annual Growth rate of 6-8% in sales • Top 50 clients
• 12-16% in profitability over the next five years • Turnover – 180 million $
• 3.6 million $ per customer
• Multiple product, Multi site
Large Contracts could mean significant savings for the agreements
customers and the company
Focus Customers
• Next 100 clients
• Turnover – 52 million $
• 500k $ per customer
• Single product, single site
agreements

Other Customers
• Bottom 150 clients
• Turnover – 34 million $
• 250k $ per customer
• Non-exclusive, product only
accounts
 NAM SALES ORGANISATION

18 National 10-15 customers + 15-20 Calling the prospects, selling,

Account Managers prospects for each NAM implementation with new NA
customers and maintaining
existing relationships

Meet the purchasing Branch sales rep also

staff, build relationship Received commissions received similar
with the plant, channel according to the sales to commissions based on sales
between sales reps and their customers
local plant personnel

NAMs were in great demand

required strong technical and and so crucial to the success of
relationship management skills NA accounts program