wescocase B2b solution

7/25/2019 wescocase B2b solution

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Business to

Business CaseSubmission


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Electrical Equipment Supplies (EES) products distrib

Value to suppliers : generating demand for theirproducts.

Value to Customers : Oered one stop solution, inemanagement " cost reduction.

#anufacturers $ Strong ties %ith &' suppliers.

*ntroduction


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C+SO#E-S

Electrical Contractors

id " /uote usiness Shortlisted

0istributors Oers %ith lo%est

oerall price

*ndustrial Customers

Ongoing need for EES1roducts

#aintenance,Operations " -epairs

(#-O) actiities Seeral industr!

segments (+tilit!,ransport etc.)

C*2 Custo

he smaller business

Commercialcustomers :

motels *nstitutional

customers: h" uniersitie

Small, stablepotential custo 3ESCO


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?5 C


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S5


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CAUSES OF FAILURE FOR

NA PROGRAM


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TOO much burden on NAM

o In case of any service requirement/defects problem/replacement of

local plant manager contacts the local branch manager, who in turn

the National Accounts Manager(NAM.

o NAM tries to resolve the problem with his NI! counter part at the loc

o "very NAM has #$%#& current customers to handle along with #&%'$

prospective clients. Also every customer has on an average &%'$ pl

locations across ).


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TOO much burden on NAM

o If we ta*e on an average of #' current customer with each having #$ plants(av

), then each NAM is handling (#' + #$ #'$ plants at a time.

o Apart from handling these #'$ plants every NAM is responsible for other #&%'$

clients with whom he may be at any stage of active selling, intensive implemen

etc.

o If you consider a particular NAM-s total time, he is totally burdened with sheer

plants locations and the investment of time for the prospective clients. At any g

time, he may be handling some current accounts as well as some process of n


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NO coordination between customers

!" and #oca# $#ants

o In case of some customers, the local procurement officers are procu

materials from the local distributors irrespective of being the NA cust

")0.

o

!he reason for plant-s team still favouring the local distributors is thathave good relationship with them and thus don-t want to change thei


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NO coordination between customers

!" and #oca# $#ants

o If the customer-s corporate 12 has done a 3ate ontract with ")

the local plant managers are not ready to procure the materials from

o 4ocal procurement is still doing the procurement of "") items in the

individual capacity despite their plant being included in the 3ate on


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Menta#it% o& sa#es re$resentati'es

o Mentality of sales person needs to be changed. If they are catering to

customer then they have 5farmer6 mind%set and when they are search

electrical contractors then they have 5hunter6 mind%set.

o Also, one of the sales rep say that he doesn-t want to serve a NA plan

giving 7&$,$$$ revenue per year.

o If we see the overall scenario, then that customer is of 7&.8 million rev

across all plants.


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o onsidering the fact that it is a NA customer and assuming that this customer is havi

across ), it is highly inappropriate for this sales rep not to serve that plant.

o 9ust because a location is generating little revenue doesn-t mean that he will not serve

location. !his phenomena is totally against the arrangement of the nation wide 3ate

")0.

o !he customer is hugely profitable to ")0, and however it is unprofitable in a certa

is a source of huge revenue in other : locations.

o !hat sales rep is viewing the scenario in isolation and not as a whole system.

Menta#it% o& sa#es re$resentati'es


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Possib#e so#utions to correct

NA PROGRAM


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o Increase the number of NAMs in the long term so as to lessen their

this way they can devote their time effectively to each current custom

as prospective customer.

o 1ave a dedicated sales team for the ma;or *ey accounts and assign

each NA so as to have better monitoring and coordination with every

location.


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o


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o ")0 must as* its local sales rep to improve and strengthen the relationship with l

procurement team. In this way they will generate orders from them which were previo

given to the local distributors.

o ?erhaps ")0 can include the clause of local buying through its branch offices in

ontract made with the customers. In this way plants will buy through ")0 only.

o orporate 1ead 2uarter of customer must channeli@e the information to its local plan

team though circulars etc. !his will *eep both the parties at the same pace. Also they

notify the local procurement officials of the items which they can procure locally and w

should procure nationally if they are NA customers.


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5nal!sis based on 1rice and Cost *n

A9(

A&'

A&(

A'

(

'

&(

&'

9(

Proft base on Price and Cost Inde%

o he aboe chart depicts the prot that might be earned frocustomer segments. he assumption that the operating maon a base aerage selling price of B & is used to calculategures %ith the price and cost inde; (E;hibit ').


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Duture road map for *ndustrial ?5customers

5s the gro%th potential is high and there is a scope of lonrelationship %ith ?5 customers , 3esco should be proactiacquiring them.

3esco being the third maHor distributor occupies the Is%eof the customer list and has the potential to forge long ter

relationship %ith the industrial ?5 customers %ho are %illbe!ond transactional relationships.

1itch for Value added serices to these customers and connonAe;clusie to e;clusie ?5 contracts.

Conert reliable focus ?5 customers into @e! ?5 custome


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ContdK

o cater to the ne% trends of *ntegrated solutions 3ESCO shtier s!stem rather than an alliance because $

5lliances inole inestment in learning about each otherbusinesses.

Scope of each customer coming up %ith a dierent set ofsuppliers and distributors.

Compete %ith competitors of alliance partners. eing proactie %ill enable 3ESCO to be in the rst tier a

hence earn prots b! marLing up the prices proided b! stier.

Dor e;ample ,in *ndia lue Star 5ir Conditioning serices pDacilit! #anagement Serices through outsourcing.


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wescocase B2b solution