Integrated Supply

In the past few years, more and more users of MRO (maintenance, repair, and operating supplies) have entered Integrated Supply relationships. The cost savings benefits associated with Integrated Supply has fostered the dramatic, rapid growth of this industry-more than $12B in 2001 and growing. Today, many large end users are demanding that purchases go through an integrated supplier rather than a traditional distributor.

Frank Lynn & Associates' Integrated Supply Practice conducts extensive ongoing research into this distribution channel to identify crucial issues and key success factors. Over the years, the team has published a series of exclusive research reports on Integrated Supply, most recently Integrated Supply & Six Sigma (2003).

Our client work has shown that manufacturers and distributors face many obstacles and options when considering or deploying Integrated Supply relationships. Integrated Supply is a big shift for many organizations, requiring them to relinquish levels of control, share information, and implement changes.

Today, in particular, organizations are challenged with the issues surrounding Integrated Supply.

For marketers of MRO products, Integrated Supply can threaten their relationships with their largest end users. Selling to integrated suppliers can create very high levels of channel conflict. However, Integrated Supply can also create opportunities for manufacturers that create and drive well thought-out strategies.

Similarly, Integrated Supply presents threats and opportunities to distributors. Most distributors respond to an end user's request for IS-type service by providing it. However, an integrated supplier involves heavy up-front investments, and profit margins are thin. There are other strategies that distributors can pursue to proactively manage Integrated Supply situations.

Frank Lynn & Associates can help you manage Integrated Supply:

>	Identify the key success factors for your company in establishing and succeeding in Integrated Supply relationships
>	Assess end user needs and perspectives related to Integrated Supply
>	Analyze competitive positions in Integrated Supply offerings
>	Gauge expecting cost savings
>	Identify optimal contract terms and compensations structures
>	Evaluate potential Integrated Supply distributors

Keys to Success
Frank Lynn & Associates helps companies develop Integrated Supply strategies that:

>	Allow proactive leverage of this powerful marketing channel
>	Offer the best means of gaining and maintaining profitable sales to large end users who have entered into Integrated Supply agreements
>	Minimize the financial loss of large account MRO business on existing distributors
>	Plan for appropriate sales and technical support
>	Determine appropriate compensation for the integrated supplier

2012 SCHEDULE

September 19, December 5

Strategic Issues in Distribution

New routes to competitive advantage

September 20, December 6

Pricing Strategy: How to Design and Implement Effective Channel Pricing

Realistic and workable approach to developing effective channel pricing strategies.

October 17

Marketing Through Distribution Channels

Use data-driven channel marketing to drive growth in sales and market share.

October 18

Professional Sales Channel Management

Using proven management tools, frameworks and methods to prepare channel managers to drive sales and market share through indirect sales channels.


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