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WESCO International. INC

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  1. The Extra Effort People WESCO International. INC • Presented by: • Ryan Boyd • Luke Duffner • Ashley Elinburg • Eric Gosselin • Dirk Lange • Charlotte Prévost • Muhammad Zeeshan Ali Group 2

  2. The Extra Effort People WESCO International CEO Ryan Boyd Roy W Haley

  3. The Extra Effort People Competitors Ryan Boyd

  4. The Extra Effort People Company History • WESCO was formed by Westinghouse Electric Company in 1922 for the purpose of selling and distributing Westinghouse-manufactured products. • In 1994, WESCO was sold to the management team of Clayton, Dubilier & Rice (CD&R), a private investment company that is known for creating new growth-oriented corporate environments with strong management teams that foster substantial improvements in productivity and profits. Ryan Boyd

  5. The Extra Effort People Company History Cont. • In April 1998, the management of WESCO Distribution, with sponsorship from an investor group led by The Cypress Group, agreed to purchase WESCO from a fund managed by CD&R and other owners in a recapitalization valued at more than $1.1 billion. • WESCO International, Inc., was formed • On May 12, 1999, WESCO International, Inc. made its initial public offering of common stock, trading on the New York Stock Exchange under the symbol "WCC.“ • Ranked 461 in Fortune 500 companies for 2002. (According to Hoovers Online). Ryan Boyd


  6. The Extra Effort People Company Background • Products: • Primarily electrical products, MRO (maintenance, repair and operating) Supplies, and supplies for industrial Original Equipment Manufacturers (OEM’s): • Electrical Supplies – fuses, terminals, connectors • Industrial Supplies – cutting and other tools, safety equipment, etc. • Distribution – circuit breakers, transformers, etc. • Lighting • Wire and Conduit • Control, Automation & Motors • Data Communications – premise wiring, patch panels, etc. Ashley Elinburg

  7. The Extra Effort People Company Background Cont. • Total stocked products exceed 215,000 • Can locate and sale over 1 million products • 130,000 customers • 6000 employees • 350 full service branches, 5 high-tech centers Ashley Elinburg

  8. The Extra Effort People Company Background Financial Information: Ashley Elinburg

  9. The Extra Effort People The Case Summary: • A supply chain problem. • 40% of the sales force spends time on services accounting for only 20% of the company’s business. • A new e-procurement system to link inventory to the inventory systems of major suppliers. • A hard task to realize because of the 20-year-old proprietary, mainframe legacy systems. • An integrative Internet gateway Eric Gosselin

  10. The Extra Effort People The Case Summary Cont. • Consequence to the E-procurement System for WESCO: • determine if an item is in stock by a direct access to the finished goods inventory systems of major suppliers, • communicate the information to their customers quickly, • increased sales nonstick items, • reduced phone costs, • saved sales representatives an enormous amount of time, • will have a major positive impact on customer perceptions of WESCO and future sales results, • strengthen the ties between WESCO and its suppliers. Charlotte Prévost

  11. The Extra Effort People Question 1: What are the business benefits to WESCO and its suppliers of its new e-procurement system? • Reduced Telephone Costs • Saved Valuable Time for Sales Representatives • Increased Sales of Nonstock Items • Integration & Sharing of Information between WESCO & Supplier • Improved Customer Perceptions Luke Duffner

  12. The Extra Effort People Question 2: Is WESCO's new system a strategic use of information technology? Why or why not? Does it give the company a competitive advantage? • It is a strategy that the company is using the new system to reengineer and compete. • The new system uses information technology to implement the five basic strategies needed to gain competitive advantage. Dirk Lange

  13. The Extra Effort People Question 2 (continued) • Lower Costs: phone costs, time. • Differentiate: faster than its competitors, improve image. • Innovate: “real-time ordering” , radical changes, dramatically cut costs. • Promote growth: increased sales of nonstocked items. • Develop Alliance: long-term partnership, trust, both sides have to invest. Dirk Lange

  14. The Extra Effort People Question 3: What other strategic moves could WESCO implement to gain competitive advantages? • Investing more in their Internet operations • Invest in an IT system with their customers • Adding other languages would help • Other functions online such as full customer service and order tracking • Tracking and Tracing • WESCO should implement an inventory method “drop- shipping”  (JIT) Muhammad Zeeshan Ali

  15. The Extra Effort People Any Questions and/or Comments ? Group 2 Thanks for your attention.