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ISMA/I.D.A. agree to unite, but will members?

Staff -- Industrial Distribution, 2/1/2004

Cleveland—A special task force made up of officers of the Industrial Supply Manufacturer's Assn. and the Industrial Distribution Assn. has recommended that the two organizations merge, pending member approval.

"We have a unique opportunity to use the merged strength of I.D.A. and ISMA, working in unison, to streamline the supply chain, reducing costs for the MROP user," said Ray Reynertson, president of ISMA.

I.D.A. president Jim Beckstein agreed, adding that, "The free flow of communication within the new organization will facilitate our members' understanding of the needs and concerns of both distributors and manufacturers, reducing channel conflict and fostering cooperation required to succeed in meeting the needs of the MROP end users. The entire channel will benefit by reducing costs for our end users, helping them compete in this very difficult business environment."

The task force proposes that the mission of the new single organization be to: "Improve the performance of the Maintenance, Repair, Operating and Production supply chain through effective, efficient interaction of MROP manufacturers and distributors."

The task force recommends that the two groups combine because American manufacturing is under siege and the pressure to reduce costs has never been greater, according to Beckstein and Reynertson. The task force also envisions an industry-wide event that would bring together other MROP associations, buying groups, MROP stakeholders and end users while developing closer relationships with other associations to act jointly on issues affecting the industry.

The recommendation will be taken to the memberships of ISMA and I.D.A. for consideration in April.

When asked how he thinks the members' vote will go, Beckstein said, "I think it will be very positive, and will go very well towards what we are doing. We worked very hard to be on the right track, fair, and to the benefit of everyone, but especially for the customer."

Reynertson agreed, saying, "I definitely think the members will vote for the unification. It has obvious benefits to the associations, the members, and most importantly, to the customers. Together, we can combine our attention on the industry and customers, and, in light of the challenges to the industry's economy, we can help the customers reduce their costs to better compete.

"In terms of the general membership, I think they will see this as an opportunity to come together with the industry's best interests in mind."

The task force recommends that the combined organization be governed by a 12-member board of directors that includes four officers. Manufacturers and distributors will be equally represented. Board members would have staggered three-year terms. Committees and task forces would be aligned directly with core program areas.

The new organization would have one regular membership category for manufacturers and distributors. Manufacturers' representatives would be classified as associate members, and service providers would be considered affiliate members. The current membership dues structures for the two organizations would be maintained.

The task force conducted an evaluation of all I.D.A. and ISMA programs and services, and recommends that mission-critical activities continue, including: conventions and forums for member interaction and education; gathering and dissemination of critical information, including industry data, research, trend analysis and operating metrics; publication of the annual membership directory; and development and implementation of channel performance initiatives, including e-commerce, standards, industry advocacy and education.

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