Strength through partnership

Continuing a long-standing tradition, ASMMA and I.D.A. focus on adding value together

By Gary L Buffington -- Industrial Distribution, 5/1/1999

As ASMMA and I.D.A. meet together again in partnership at the Spring Convention -- for the final time in the 20th century -- it is appropriate that we focus on "Adding Value Together." After all, that is what I.D.A. and ASMMA and their predecessor associations, along with the many distributors and manufacturers who have made up our associations, have been doing for all of the 20th century.

As alternative channels have evolved and as industrial consumers have focused on the need for greater efficiencies, the leadership of ASMMA and I.D.A. have together focused on devising and communicating a powerful message of "Win/Win/Win" to describe the relationship between manufacturers, industrial distributors and their end users. This has been the focus of the work of the ASMMA/I.D.A. Value Added Promotion Task Force and has resulted in a promotional brochure, a workbook, and a series of work sessions throughout the country. The goal is to teach manufacturer and distributor sales personnel how to develop and promote the value added concept to our end users. That is what we are all about as an industry (and that is what we are about as associations). As Professor Theodore Levitt of Harvard Business School expressed it: "if a wholesaler-distributor cannot show the value they add, then why would anyone choose to do business with them on any basis other than price?" ASMMA and I.D.A. members are moving beyond a focus on price to a focus on value added. That message will be at the heart of the Spring Convention in work sessions and in the one-to-one dialogue which occurs between manufacturer and distributor executives, as well as between distributors and their counterparts from throughout North America.

The recent NAW/DREF Report, "Facing the Forces of Change: Four Trends Re-Shaping Wholesale-Distribution," identified four trends which will dominate distribution for the coming years: electronic commerce, supply chain integration, alliances and globalization. Effectively, all of these trends are a part of the value added movement, particularly that of supply chain integration, where end user procurement functions are being passed on to suppliers (distributors) who can add greater value. The alliance movement is also indicative of the need to add value with partners to become even stronger components of the supply chain.

ASMMA and I.D.A. are alliance partners in serving the needs of this industry, and the Spring Convention is the most visible example of that partnership. The ASMMA/I.D.A. partnership extends back to the early days of this century. The leadership of both associations is committed to growing the partnership well into the 21st century as we enable our members to remain the channel of choice for the acquisition of industrial MRO supplies.

I encourage every industry manufacturer and distributor to take advantage of all that is available at the Spring Convention and to leave here with strengthened partnerships which will enable us, together, to add even more value to the customers we serve.

Gary Buffington is executive vice president of the Industrial Distribution Assn.

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