Wesco Distribution, Inc. provides electrical products and supplies to industrial, commercial, and residential customers. The document discusses Wesco's national accounts program which aims to increase revenue through strategic customer relationships. It identifies challenges such as balancing sales approaches for different customer types, meeting changing customer expectations, and competitors. The national accounts managers face challenges in meeting with corporate customers regularly, ensuring contract compliance, and facilitating relationships between Wesco's local branches and customers' local plants.
Wesco Distribution, Inc. provides electrical products and supplies to industrial, commercial, and residential customers. The document discusses Wesco's national accounts program which aims to increase revenue through strategic customer relationships. It identifies challenges such as balancing sales approaches for different customer types, meeting changing customer expectations, and competitors. The national accounts managers face challenges in meeting with corporate customers regularly, ensuring contract compliance, and facilitating relationships between Wesco's local branches and customers' local plants.
Wesco Distribution, Inc. provides electrical products and supplies to industrial, commercial, and residential customers. The document discusses Wesco's national accounts program which aims to increase revenue through strategic customer relationships. It identifies challenges such as balancing sales approaches for different customer types, meeting changing customer expectations, and competitors. The national accounts managers face challenges in meeting with corporate customers regularly, ensuring contract compliance, and facilitating relationships between Wesco's local branches and customers' local plants.
SITUATIONAL ANALYSIS: The case seems to be about customer engagement
and relationship building. Wesco distributions is at a
junction where it needs to increase its revenue and a significant part of its revenue is linked to the successful implementation of the national accounts program.
Type of customers Electrical Consumers Industrial Consumers CIG Consumers
Future path for the company
Jim Piraino understands his customer requirements are
changing, this provides the company a unique opportunity to
improve market relation and profitability if they can provide some value to the customers There is also a need o link this opportunity to the goal, which is to achieve the growth rate of 6% to 8 % in sales and 12% to 16% increase in profitability There are two ways of looking at it 1. through acquisitions of other companies: will contribute to half the revenue growth 2. National Account was expected to contribute to the profit growth
RELATIONSHIP LEVELS
Highest Level
NAM and corporate headquarters
of the customer
Regional Level
Branch Manager and the local level
distributors
Field Level
Sales representatives need to
balance between the hunter approach and the farmer approach
Challenges in National Accounts Programme
Proactive or Passive Hunter Mentality vs Farmer Mentality of sales Rep
( Conflict for sales rep while approaching electrical
customers and the Industrial customers ) Difference in consumer Expectations for the requirements and services Requires a realignment of strategy for NA to succeed Challenge of the competitors Customers expectations were changing however not changing uniformly
Increasing the quality of service and thus increasing
the investment ( Exhibit 11 )
Value added services required by customers Prianos Classification of National Accounts Program- Key, Focus and Others Customer treat as non exclusive deals and looking for non EES products
Challenges for NAM
They were expected to meet regularly with the
customers corporate purchasing staff, ensure
compliance to the volumes agreed upon in the NA contract, build relationships with local plant personnel, and facilitate relationship building between WESCOs branch sales reps and the NA customers local plant personnel. Selection of NAM was also very tough A lot of time went to work for a few NA clients Process stalled in implementation leads to lower profits