

July 2008 Company News \| From the Desk of \| Industry News Special Offer Meet Joe Harris Zerion’s product is its people. Since it’s rare that our friends and clients get to meet all of the outstanding professionals who make up our company, this month we’d like you to introduce you to Joe. Residence: Raleigh, North Carolina Hometown: Franklin, Virgina Position with Zerion: Consultant What did you do before joining Zerion? I was in agricultural biotechnology research. What is your specialty at Zerion? I spend most of my time helping clients with purchasing and inventory management. What is the best location you’ve traveled to for your job? I loved Portland, Oregon during the summer because of the amazing mesh of social classes, the culture, and the public transportation. If there was one place you could visit in the world, where would it be? I would visit Hawaii to hike the volcanoes, see the rain forests, and waterfalls, and of course experience the endless summer. What do you like best about your job? That I am constantly meeting new people. What is your favorite “customer success” story? I believe that every customer who overcomes their fear of technology and change under my watch is a success. How do you spend most of your time when you’re not working? I enjoy hearing live music and surfing. What is a little known, interesting fact about you? I’m a mad scientist. Favorite book or movie and why: Goonies... I’m still a kid looking for an adventure. In one sentence, describe your philosophy on life and work: Work hard to play hard. Back to Top The wholesale distribution marketplace is somewhat fragmented, and we’ve seen a fairly consistent consolidation in recent years. What’s interesting, though, is that while other industries are posting double-digit losses and businesses are declaring bankruptcy, wholesale distributors are continuing to acquire one another and pursue growth. We’re seeing this trend both large and small and we’ve repeatedly made note of mergers and growth in our industry news section. On the heavy side of the scale, we saw a major acquisition when the Home Depot bought (and later sold) Hughes Supply a few years ago. Still named HD Supply, they’re focused on bringing on even more businesses into their fold and recently acquired D&M Fabrication Inc. out of California. Wholesale giant Sonepar very recently completed its acquisition of Hagemeyer from Paris-based Rexel in a $4.7 billion deal, which we’ve been hearing about for some time. While Sonepar USA, a subsidiary of Sonepar, recently acquired 14-branch ESSCO Wholesale Electric in Arizona. Then ESSCO went on to buy back its former Arizona-based Mountain Vista Supply this month. In March, Kaman Industrial Technologies agreed to acquire Industrial Supply Co. in Richmond, Va. On the smaller side, Westwater Supply, Columbus, OH, purchased Probst Supply Co. in Marion, OH and Schmidt’s Wholesale, Monticello, NY, purchased Smith Supply in Newburgh, NY. Distributors are growing organically as well. In May, Grainger announced its plans to focus on customer service as a means to grow as well as open new branches, including 5 in Mexico. Noland Co., a subsidiary of fast growing WinWholesale, just opened a location in South Carolina, while their parent company opened two Winair locations in Texas. And Ferguson recently opened a 35,000 sq.-ft. facility in Indianapolis and a 4,500 sq. ft. showroom in Pennsylvania. Now of course growth isn't the case with every company, but for those taking part is the trend, the question is - “how”? How are distributors able to continue executing growth plans, or maybe even initiate them, in these tough economic times? And why do they want to take that risk? Some say this is a great opportunity both for smaller distributors who were looking to “get out” and for larger distributors with the resources to take advantage of a good time to buy. Being acquired could save an ailing company while possibly still producing a pay off. And when brought under the wing of a better performing one, it very well may flourish. In the meantime, acquirers are able to use acquisitions as a way of growing geographically, expanding their breadth of services, tapping into new or different markets or strengthening their position in a given market. As a consulting company, we too see growth and acquisitions as an opportunity. When a company is acquired, often times it means converting them to the ERP their parent is on. Or it could mean an entire new integration to suit the needs of a now larger company. It could also mean that an expanded operation is in need of new strategies to increase efficiency and enhance operational controls. Regardless, it seems to me like the down economy could be creating a win-win for distribution. What do you think? Tell us. How can we use our skills to help you integrate an acquisition? Let us know. Brad Riley, Vice President 321.229.3033 Back to Top What’s happening with distribution, software and business? Zerion is committed to being a resource for our clients and friends. In the newsroom on our Web site, we have an RSS feed supplying new articles all the time. We also have some links to industry news. Here are some of the recent articles we found most interesting: Survey says crossdocking is a popular distribution practice Outlook For Total Construction Remains Negative For 2009 PCs in use surpass 1 billion Rexel, Sonepar Complete Hagemeyer Deal Want more news? Visit us at: www.zeriongroup.com/newsroom/industrynews.html Back to Top Get a FREE half day of consulting ... Do you know someone that would benefit from our services? Tell them about us. For every one day of business that is secured with your referral, you get a free half day of consulting (travel not included). This offer is only available for newsletter subscribers for a limited time. Contact Tony King (321.229.1089) by August 30 with your referral to receive the discount. Back to Top	Did you know that you can see open orders involving multiple locations on one screen? While running an Open Sales Orders Report, you can use Alt > Select to access the Additional Selection Input. This will allow you to list open orders priced at one branch and shipping from others. Additionally, the Multi hot key will allow you to choose several branches at once.

July 2008

Company News | From the Desk of | Industry News
Special Offer

Meet Joe Harris
Zerion’s product is its people. Since it’s rare that our friends and clients get to meet all of the outstanding professionals who make up our company, this month we’d like you to introduce you to Joe.

Residence: Raleigh, North Carolina
Hometown: Franklin, Virgina
Position with Zerion: Consultant

What did you do before joining Zerion?
I was in agricultural biotechnology research.

What is your specialty at Zerion?
I spend most of my time helping clients with purchasing and inventory management.

What is the best location you’ve traveled to for your job?
I loved Portland, Oregon during the summer because of the amazing mesh of social classes, the culture, and the public transportation.

If there was one place you could visit in the world, where would it be?
I would visit Hawaii to hike the volcanoes, see the rain forests, and waterfalls, and of course experience the endless summer.

What do you like best about your job?
That I am constantly meeting new people.

What is your favorite “customer success” story?
I believe that every customer who overcomes their fear of technology and change under my watch is a success.

How do you spend most of your time when you’re not working?
I enjoy hearing live music and surfing.

What is a little known, interesting fact about you?
I’m a mad scientist.

Favorite book or movie and why:
Goonies... I’m still a kid looking for an adventure.

In one sentence, describe your philosophy on life and work:
Work hard to play hard.

From the desk of Jack Whitwam The wholesale distribution marketplace is somewhat fragmented, and we’ve seen a fairly consistent consolidation in recent years. What’s interesting, though, is that while other industries are posting double-digit losses and businesses are declaring bankruptcy, wholesale distributors are continuing to acquire one another and pursue growth.

We’re seeing this trend both large and small and we’ve repeatedly made note of mergers and growth in our industry news section. On the heavy side of the scale, we saw a major acquisition when the Home Depot bought (and later sold) Hughes Supply a few years ago. Still named HD Supply, they’re focused on bringing on even more businesses into their fold and recently acquired D&M Fabrication Inc. out of California.

Wholesale giant Sonepar very recently completed its acquisition of Hagemeyer from Paris-based Rexel in a $4.7 billion deal, which we’ve been hearing about for some time. While Sonepar USA, a subsidiary of Sonepar, recently acquired 14-branch ESSCO Wholesale Electric in Arizona. Then ESSCO went on to buy back its former Arizona-based Mountain Vista Supply this month.

In March, Kaman Industrial Technologies agreed to acquire Industrial Supply Co. in Richmond, Va. On the smaller side, Westwater Supply, Columbus, OH, purchased Probst Supply Co. in Marion, OH and Schmidt’s Wholesale, Monticello, NY, purchased Smith Supply in Newburgh, NY.

Distributors are growing organically as well. In May, Grainger announced its plans to focus on customer service as a means to grow as well as open new branches, including 5 in Mexico. Noland Co., a subsidiary of fast growing WinWholesale, just opened a location in South Carolina, while their parent company opened two Winair locations in Texas. And Ferguson recently opened a 35,000 sq.-ft. facility in Indianapolis and a 4,500 sq. ft. showroom in Pennsylvania.

Now of course growth isn't the case with every company, but for those taking part is the trend, the question is - “how”? How are distributors able to continue executing growth plans, or maybe even initiate them, in these tough economic times? And why do they want to take that risk?

Some say this is a great opportunity both for smaller distributors who were looking to “get out” and for larger distributors with the resources to take advantage of a good time to buy. Being acquired could save an ailing company while possibly still producing a pay off. And when brought under the wing of a better performing one, it very well may flourish. In the meantime, acquirers are able to use acquisitions as a way of growing geographically, expanding their breadth of services, tapping into new or different markets or strengthening their position in a given market.

As a consulting company, we too see growth and acquisitions as an opportunity. When a company is acquired, often times it means converting them to the ERP their parent is on. Or it could mean an entire new integration to suit the needs of a now larger company. It could also mean that an expanded operation is in need of new strategies to increase efficiency and enhance operational controls.

Regardless, it seems to me like the down economy could be creating a win-win for distribution. What do you think? Tell us. How can we use our skills to help you integrate an acquisition? Let us know.

Brad Riley, Vice President
321.229.3033

What’s happening with distribution, software and business?
Zerion is committed to being a resource for our clients and friends. In the newsroom on our Web site, we have an RSS feed supplying new articles all the time. We also have some links to industry news. Here are some of the recent articles we found most interesting:

Survey says crossdocking is a popular distribution practice

Outlook For Total Construction Remains Negative For 2009

PCs in use surpass 1 billion

Rexel, Sonepar Complete Hagemeyer Deal

Want more news? Visit us at: www.zeriongroup.com/newsroom/industrynews.html

Get a FREE half day of consulting ...
Do you know someone that would benefit from our services? Tell them about us. For every one day of business that is secured with your referral, you get a free half day of consulting (travel not included). This offer is only available for newsletter subscribers for a limited time.

Contact Tony King (321.229.1089) by August 30 with your referral to receive the discount.

Did you know that you can see open orders involving multiple locations on one screen?

While running an Open Sales Orders Report, you can use
Alt > Select to access the Additional Selection Input. This will allow you to list open orders priced at one branch and shipping from others. Additionally, the Multi hot key will allow you to choose several branches at once.