WESCO Distribution,

nc.
74:5
Aditya Mittal
Arnav Das
Harsh Vardhan
Customers
Electrical
contractors
$ 465mn
2-4% growth
ndustrial
customers
NA
$ 266mn
15-19%
growth
Other
$ 721mn
1-3% growth
CG
customers
$ 148mn
2-4% growth
National Account Program
O Pros
O Benefits both, WESCO and customers
O Potential to increase its sales in the long run
O Reduces procurement costs and hence, increase profit
margin
O Target group constitutes maximum market share
O Growth rate is very high, 15-19%
National Account Program
O Cons
O Double commissions
O Losses due to stallation process at the implementation
phase
O Skeptical customers
O Top management may create problem
O Unanticipated differences in customer data & practical
scenario
O Differences due to local ties
O Loss of electrical contractor customers
ssues
O Should it continue with NA program?
O Develop customers or simply react?
O Demands of traditional customers?
Should t Continue With NA
Program?
$
O High sales and growth rate
O Security of a large contract
O Long term commitment from industries
Develop customers or simply
react?
O Build strong relations with existing key NA customers
O Try to convert all the customers into Key NA customers
O Losses in case of other NA customers
O Develop customer selection process
O Add new NAMs
O Designate a few exclusively to implementation process
Demands of traditional
customers?
O Cannot satisfy every customer
O Stop being distributors if they demand too many services
O Focus only on traditional services and not too many
high end services
O n the long run, develop NA KEY customers and cut
down on the traditional customers