ASA has been driven for more than a decade by our vision of being the unified voice that drives the success of the PHCP and PVF supply chain.
For the past 15-plus years, we have invested more than $6.7 million across our four value areas of advocacy, operational excellence, embracing the future and workforce development to expand the value of being a member in our association, and building both the brand and voice of ASA as the industry leader.
We think we have done a great job of creating an association the industry can rally around.
In a recent member satisfaction survey, 98% of respondents find being an ASA member valuable. And more than 80% believe we are doing an excellent job. That’s confirmation of what we have been thinking, and it’s a testament to the hundreds of volunteer leaders working hard to build a vital national trade association.
While we are doing a great job, it’s not time to pat ourselves on the back — there is room for improvement. Fifty percent of members actively use ASA University for training — and 50% do not. Sixty-one percent of our members are aware of ASA’s PROJECT TALENT careers recruitment platform, but 39% still are not aware of what we have to offer.
Sixteen percent of respondents to the survey have used PROJECT TALENT career recruitment tools. To recruit 100,000 new workers to this industry, we need all our members engaged in recruiting.
Fifty percent of members either did not know about our Vitality Assessment Tool or didn’t know enough about it. This confidential self-assessment helps members navigate their companies to gain greater success in the future. Take a look at the article in this issue by New Edge CEO Pam Henderson on how members can equip their companies for future growth and then determine if it’s time for your firm and senior teams to take this assessment.
On the benchmarking front, 76% of members use our ASA Business Intelligence platform, with the monthly economic report being utilized by 70% of the members. In fact, ASA’s business intelligence programs have become the No. 1 value area of the association.
Eighty percent of members have a favorable opinion of ASA’s advocacy efforts — another robust number. More members are recognizing the role of advocacy, but far too few members support our Political Action Committee that is vital to gaining greater success in the future. We need to do better here as well.
While communication has improved through our Insights weekly eNewsletter to members, social media, e-blasts and this ASA Review publication, there’s still not enough awareness of all that ASA offers.
We will work harder to do a better job of communicating all that ASA is doing to achieve our mission and to build one industry, one association and one voice to protect our industry.
Michael Adelizzi, CEO
ASA recently debuted its brand-new website at www.asa.net
The enhanced site provides an overall better user experience with better ease of navigation, and builds on the association’s unrelenting commitment to offer its members programs and initiatives that will best help compete in an ever-changing business climate.
Visitors to www.asa.net are able to access valuable information on the homepage, such as upcoming events, industry news and career recruitment tools.
The new site, created by ASA Director of Marketing and Communications Abby Zastrow, is visually appealing, impactful, engaging, user-friendly and encourages visitors to spend time exploring.
“Having this exciting, new website will take on greater importance for ASA and our industry, especially into the future,” ASA CEO Mike Adelizzi said. “The new website better reflects our brand, our mission and tells a clear story of who we are as an organization, and what value we provide to people in the industry, as well as visitors from outside our industry. The new ASA website will become a source to learn about continuing education opportunities, gain insight about industry issues and economic trends, and access news about upcoming industry events.”
Visitors will experience an overall better registration/checkout experience for all ASA products, services and events.
The new, updated look provides the best reflection of ASA as the industry’s only national trade association, helping
membership grow and members to feel even prouder to be a part of ASA.
“It is our hope that with news and social media updates each day, a check in on asa.net is worth a few minutes of our members’ time every week, and it will grow to become the focal point of our industry as a place to go to be informed,” Adelizzi said.
ASA’s Insights weekly e-newsletter is another free benefit that helps keep ASA members updated on association happenings, as well as other important industry news, trends and best practices. To sign up, email info@asa.net.
No truth revealed by my research and travels visiting with distributors during the We Supply America tour is clearer than this: People want purpose, not jobs.
Full stop!
As one distributor put it in the survey we conducted for our research on the changing nature of leadership:
“If your organization is not a people-first organization, your people will find one.”
ASA member Bender, a plumbing supplies distributor with six locations across Connecticut, has taken giving people purpose straight to the heart. So much so that it’s not uncommon to see tears during their regular Bender Purpose Meetings.
Bender’s leadership team embraces the noble calling, which means it:
Provides opportunity for all team members to improve the life and well-being of their families.
Creates an environment of growth for the individual.
Empowers employees to be the best version of themselves – and to believe in themselves.
In my research, 47% of respondents believe this is how distributors must lead in the next five years if they want to be successful. This requires a tectonic shift, because 53% of respondents believe distributors today lean on controlling and managing as leadership styles.
Controlling and managing are antiquated. We must change tack. Putting humanity at the core of leadership is critical if we want to build sustainable businesses for the next generation and the generation after that.
A significant 93% of survey respondents agree with this premise that the human element will play a significant role in leadership going forward. And if we are to ensure humanity is at the core of leadership, we’ll need to personalize the word “disruption” and recognize that disruption of the past few years has had a greater and more enduring impact on the individual than it has on the business as a whole.
It can be done. The team at Bender is a shining example. Bender is focused on the whole person, and humanity is firmly at the center of its leadership operations.
“We are developing leaders and letting go of the vine,” COO Mark Chirgwin told us during a follow-up discussion after my visit.
To them, developing teams means looking down two tiers from branch managers for leadership development opportunities.
“If I can look down and see leaders being built at that level, then I know I’m becoming a good leader,” Chirgwin says. “If it stops at the people that report to me, I’m not developing teams, because they’re not developing teams.”
This is where letting go of the vine comes in. To encourage leadership mindsets at all levels, branch managers and warehouse supervisors at Bender are asked to let go of responsibilities, strategically and to those who want those responsibilities.
They’re asked to “delegate and elevate.”
Even the seemingly simplest tasks hold meaning: A branch manager handed coffee and snack ordering off to an individual who takes pride in having that responsibility. Another branch manager was still personally involved with several customers and trained another person to take on that opportunity.
“It gives us more time to work on the business rather than working in the business,” says Dan Falvo, a branch manager at Bender’s Waterbury location. “It gives the person we’re delegating it to some additional responsibility, and they get to step up and raise their game.”
To the Bender team, delegating is about helping individuals grow.
“More times than not, people want to continue to evolve,” Chirgwin says. “They want to do more, and you can’t do more if you don’t give up what you’re currently doing.”
Delegating and elevating is just one strategy Bender applies to make work more meaningful for employees. It also holds Purpose Meetings every Friday. In these meetings, the distributor covers topics tied into its core values and behaviors. They’ll break out into groups to discuss and share, and then reconvene to debrief and commit to an action. For instance, they might commit to being better listeners over the next week. They’re really bringing – and allowing for – humanity in the workplace.
By providing the space, resources and tools, distributors can help employees unleash their spirit and support them in their lifelong journey of becoming better people.
At Bender’s Purpose Meetings, it’s not uncommon to see the CEO sitting next to warehouse guys or the sales and marketing folks working with customer support and human resources –all on soft skills, which tend to be underrated.
When I was on a Zoom town hall with Bender’s team during my We Supply America tour stop at the Waterbury, Conn., branch, one man shared the value of these meetings with me. He simply said:
“I’m a better father.”
He then shared that at a picnic with his son, he could feel himself starting to get frustrated because his son was unwilling to leave his side and play with the other kids.
“He quickly thought about where he was, what he’s learned through our meetings and realized he needed to have more patience,” Chirgwin says. “By the end of the day, his son was more social, and he was so proud that the moment didn’t turn into an argument and ruin both their days.”
If we all commit to the same development and valuation of these softer skills, imagine what we could do in – and outside – the world of distribution.
“We’re trying to give people tools that make them better human beings outside the workplace,” Chirgwin says. “I’m a basketball coach, and I’m a much better coach today with the tools we’ve created at Bender than I was 10 years ago. Once I’m using those tools outside work, they come to me easily at work: listening, delegating and elevating, having more patience.”
Falvo says that’s been missing in leadership for a long time. “I think a lot of leaders have been mislabeled as leaders, when really they are managers. I never realized how wide the gap between a manager and a leader was until I came to Bender.”
“We can’t force people to have humanity, but there’s two things we can do for them,” Chirgwin says. “We can give them the opportunity to have humanity, and we can make sure they have an opportunity to self-reflect every day on: Did I have humanity today? Was I humble today? We can show them what a productive day is and ask them to self-reflect: Was I productive today? That allows them to leave work for the day with dignity.”
People want purpose in their work and want to be seen as a real person. If they don’t find that, they’ll go elsewhere. Chirgwin and his team at Bender recognize this and provide it in spades.
Falvo has been at Bender nearly 10 months now, having left a 30-year career in the furniture industry for less pay and greater job satisfaction.
“I go home exhausted every Friday, but it’s a different exhaustion,” he says. “I’m not managing anymore, I’m leading. It feels really fulfilling when you go home at the end of the week and know you’re having an impact on people’s lives within your circle of influence.”
Dirk Beveridge is the founder of UnleashWD, executive producer at We Supply America, president of the Beveridge Consulting Group and champion for the noble calling of distribution for more than 36 years.
“If your organization is not a people-first organization, your people will find one.”
Competing for talent is a daunting task in today’s labor market. It requires employers to ensure all recruiting efforts and tools are buttoned-up and positioned to garner the best possible results.
It should come as no surprise that the first place most jobseekers will look when learning about potential opportunities is a company’s website. Therefore, it can’t be underestimated that the experience a candidate may have on a website could make or break the chance to attract the best talent possible.
When considering this, ASA members may ask themselves:
Does my website promote our culture?
Does my website provide a good candidate experience?
Is my website mobile-ready?
Can people easily find our website?
Answers to these questions and others can help begin to help companies understand if what jobseekers see and experience will encourage them to pursue career opportunities there or look elsewhere.
The candidate experience is the perception jobseekers have of a business based on their interactions at every point of contact during the exploration or application process. This includes initial awareness of a company, its social media presence, the interview process and any post-application communication.
When potential candidates visit a company’s career page on their website, they expect to find some basic elements which help create a good experience. Features such as an overview of the firm’s vision and mission, information about
68%
its culture, well-written job descriptions, a clear application process, an intuitive and easy-to-use listing of jobs and employee testimonials among others help shape and define the experience.
Managing the candidate experience becomes even more critical when you consider Careerbuilder.com’s research that shows 68% of candidates think that a company’s hiring process reflects how it treats its employees.
Making sure a website, and particularly the career section of a company’s site, is optimized for mobile devices is another way to drastically improve chances to attract talent.
In 2021, almost 70% of job applications were made from mobile devices according to a recruitment marketing benchmark report by Appcast. What’s more is the report also found that mobile application rates increased across the board compared to prior years and were especially significant in several sectors, including manufacturing, warehousing and logistics where nearly 80% of applications were submitted via a mobile device.
Understanding the differences between a site being mobile friendly and mobile optimized is important when considering a candidate’s online experience. Mobile friendly means that a site is designed for a desktop computer but can be viewed on a mobile device. These usually offer users a less-than-ideal experience. Mobile optimized sites are those designed for smaller screens and will reformat itself for mobile users and provide users a much better experience.
To improve a website’s search engine optimization performance, it is required that relevant keywords with good search traffic potential are included, compelling and useful content is used, and relevant links from high-quality sites are incorporated. Shutterstock Photo.
is called search engine optimization or SEO. To improve a website’s SEO performance, it’s required that relevant keywords with good search traffic potential are included, compelling and useful content is used, and relevant links from high-quality sites are incorporated.
There are countless online resources and third parties that assist companies with their SEO efforts, and it’s generally recommended that these services are considered given the technical nature of this very important element, unless internal resources are available.
ASA’s support of members’ local recruiting efforts
To help its members put their best foot forward with their recruiting, ASA recently held a live webinar to cover the topics discussed above and more as part of its PROJECT TALENT initiative.
Unfortunately, in today’s online world there is no “build it and they will come.” Building a great website with a beautiful design and solid content is simply not enough to get jobseekers to visit it.
Sixty eight percent of website visits begin with a search engine and 75% of users never scroll past the first page of search engine results. While most people immediately think of Google when considering search engines, others such as Bing and Yahoo get considerable traffic. Career-related sites such as Indeed, Zip Recruiter and Career Builder are also considered search engines but for jobseekers. Google now has a site for jobseekers called Google Jobs.
All of this underscores the importance of developing and managing a website so these search engines see it and include it in search results. The art and science of this
In addition to branding the industry, ASA aims to provide members with tools and resources to assist with their local recruiting efforts. Many of these tools and resources can be found in the online Recruiter Toolbox, including a recording of the recent webinar covering recruiting website best practices.
To access the Recruiter Toolbox members can visit asa.canto.com and click on “Access Request.” There will be three more live webinars throughout 2023 on recruiting topics such as leveraging Indeed, the power of social media and a more detailed session on SEO.
of jobseekers apply for a job using their mobile phone. 70%
“Careerbuilder.com’s research shows 68% of candidates think a company’s hiring process reflects how it treats its employees.”
A look inside ASA’s VITALITY Growth Assessment Tool.
By Pam Henderson, Ph. D, CEO, NewEdgeThe ASA VITALITY Growth Assessment Tool is a survey and report to equip you and your organization for future growth.
It offers ASA members a bold new strategic tool to help confidentially assess readiness for growth and success in the future. The assessment will challenge you to think differently about your business and raise awareness about positioning your company.
It provides confidential insights on areas of strengths and shows you where to invest more time and money in order to support your future goals. Whether you are comfortable with your current performance or looking for a change, the Vitality Growth Assessment Tool is designed to meet your needs. Distributors, manufacturers and reps are all welcome to participate.
This tool is sponsored by ASA to provide your own confidential report regarding the structure and strength of your organization’s corporate growth strategy, without getting into the content of your specific strategy.
It looks at six areas: how your organization is driving focus, using trends to develop a view of the future, your vision and strategy and how you are structuring to meet these goals. You will learn how to better drive alignment, which is foundational for growth. You will also learn where your organization is passionate for improvement — which makes driving change that much easier.
It may seem surprising, but all this can be discerned from generic questions that do not require you to provide any insight into where or how you plan to grow – e.g., future investments, acquisitions, talent strategy, etc.
Members have already benefited from the assessment. Here is just a sample of outcomes:
One organization discovered that its staff did not think the company was innovative, but had a big appetite to improve in that area. The leaders embraced this challenge as they, too, were hungry for greater innovation.
They leveraged the report back to staff to show how they were supporting and engaging staff in future innovation and culture efforts. Communication was strong and the response was incredibly positive. Had they not had that insight regarding the staff appetite for change, the leadership would have missed an excellent opportunity to create momentum, excitement, and the right dialogues.
Another organization found it had good strategy practices in its senior team but that the rest of the organization was not aware of the depth of work being done to guide the company. The results showed that the senior leaders were aligned on the high-quality work they were doing with trends, visioning and strategy, but they were not communicating these efforts to staff.
As a result, the overall alignment scores were low. Once the leadership understood this, it opened the door for sharing insights and inputs into strategy that made the direction of the company even more compelling. Communication was all that was needed to create a more positive culture.
external environment could negatively impact their business or open new opportunities.
The company engaged in a trends deep dive across their team which was both informative and collaborative, driving new discussions internally. They are now taking that to the next level and exploring even broader trends with a broader group of staff and board members to create a more external-facing culture and informed approach to growth.
Why should your company jump at taking this assessment?
ASA is responding to a trend in VITALITY: ASA has done extensive research on member needs. It recognized and has responded to the needs for innovation in the industry and for help with workforce development.
But ASA also has seen a pronounced need for organizations to develop stronger short- and long-term strategies. Without clear visions and strategies that respond to trends and are embedded in the way they work, ASA members will not fare well in response to trends.
To that end, ASA commissioned NewEdge, a growth strategy and innovation firm, to use its extensive published research on strategy and experience in our industry to create this assessment. It is ASA’s hope that members will use this survey and report to bolster their efforts towards growth and vitality considering the major changes facing the industry.
A third organization realized that it was not really using trends to help it grow. Their current practices were unsophisticated and there were several sources and ways of looking at trends that they were not doing. They saw that rapid changes in the
Employee insights might surprise you: This is not another employee engagement survey. Instead, it is a way to capture a cross-section of opinions from every area of your organization on how your staff sees the direction of the company. By checking alignment within the organization, you will understand whether your people are ready to move forward in a given direction or
“By checking alignment within the organization, you will understand whether your people are ready to move forward in a given direction or whether you need to take time to get people on board before moving forward with your strategic growth plans.”Without clear visions and strategies that respond to trends and are embedded in the way they work, companies will not fare well in response to trends. Shutterstock Photos.
whether you need to take time to get people on board before moving forward with your strategic growth plans. Once you are all rowing in the same direction, the path to success is a lot easier.
Improving strategic practice: Whether you have a strategic planning process or even a written strategic plan, this tool will give you an idea of what good could look like. It brings together insights from both distributors and manufacturers to show what good, better and best practices are. You will learn how to start your journey looking at trends or improve it to rival best practices. You will see the ways companies’ structure for growth from those just starting their journey to seasoned strategy leaders. Either way, use the report as a self-reflection on how you are driving growth. Look at where your organization is most interested in improving and leverage their appetite for taking on new initiatives.
All members of ASA, including distributors, manufacturers, reps, master distributors and service providers. From the smallest of companies to the largest of corporations, and even individual business units can benefit from the insights. It only takes a few minutes to register by visiting https://newedgeopportunity.com/growth-assessment/asa or learn more at https://www.asa.net/Industry-Intelligence/ Vitality-Business-Assessment. Once registered, the survey links will be sent out to your staff with a deadline of two weeks to respond.
Leadership participants will receive the executive version of the survey, which will take them about 25 minutes to respond. Other staff will receive a shorter survey that should only take 5-10 minutes.
After the two weeks have passed, an email will be sent to the survey sponsor with a link to your company report. This customized report demonstrating your organization’s vitality, alignment and appetite for change, as well as additional educational resources, will be downloadable as a PDF and can be shared with the organization at the level you see fit.
In addition to the PDF report, you may meet with the NewEdge team for one hour to understand the report and discuss the findings. Your answers show where your current practices are and give tips on how to improve. There are educational resources from ASA linked to the sections of the report so you can utilize these resources for growth.
Your company has a chance to build better practice in strategy using a very low-cost tool. We encourage you strongly to jump on this offer as it will open your eyes to new and often easier ways to grow.
Register today!
Pam Henderson is the CEO and founder of NewEdge and has been involved in innovation and organizational growth for the past 25 years. Pam pioneered NewEdge’s trademarked Opportunity Thinking approach to innovation that has assisted organizations in creating sustainable growth by focusing on opportunities rather than ideas. NewEdge is ASA’s confidential partner in offering the VITALITY Growth Assessment Tool to members.
Participation in ASA’s Women in Industry annual conference ELEVATE grew by more than 45% and set an all-time attendance record with more than 320 attendees in Charleston, South Carolina in early April.
The three-day conference featured dynamic educational speakers including Janine Driver, who spoke on the “4 Simple Steps to Being Irresistible in Any Situation,” Amanda Gore, who informed attendees on “What Leaders Should Know About Feelings & Performance” and Mylène Paquette, who brought the audience to a standing ovation as she recounted her historic journey when she became the first person from the Americas to row solo for 129 days across the North Atlantic Ocean. The conference did not stop there. Attendees participated in engaging workshops as well as listened to a powerful panel of their own peers that focused on finding their voice.
ASA’s Women in Industry Division was established nearly 10 years ago to help attract women to career opportunities in the PHCP-PVF supply chain as the industry was beginning to feel the effects from a projected loss of more than 100,000 workers due to an aging labor force. This rapidly growing group has become the beacon for women serious about furthering their careers in the PHCP & PVF industry as women leaders from major distributors, manufacturers and manufacturers’ representatives gathered in Charleston. ASA’s ELEVATE is the place to be for women in the industry. Here is what a few women had to say about their time at ELEVATE2023:
“Best words to describe this event? Inspirational, empowering, influential. . . WORTH IT!”
“Grateful for the opportunity to connect with other female professionals who have taken the step forward in the PHCP and industrial PVF supply chain to network and leverage educational opportunities to advance their careers.”
“Thankful for ASA for creating a wonderful opportunity with the ELEVATE conference for women to come together to network and become each other’s biggest advocates.”
“An outstanding few days at ASA’s ELEVATE Women in Industry conference. More than 320 women sharing their stories and inspiring each other.”
Nearly 50 women currently serve in various ASA leadership groups with 39 currently serving in the WII Advisory Group and four subcommittees. An additional 50 are on a volunteer waiting list. ASA’s Women in Industry group is truly having an impact.
Don’t miss this unequaled event by attending ELEVATE2024 in Nashville, April 10-12, 2024.
To have your company join ASA’s Women in Industry group, send an email to women@asa.net
ELEVATE attendees participated in a charitable bike-building workshop. A record crowd of more than 320 attended ELEVATE2023 in Charleston. A Women in Industry panel discussion was part of a jam-packed education and networking program.Back in February 2008 at the association’s winter meeting in St Petersburg Florida, the leadership of the American Supply Association established its first long-range strategic plan based on the vision of both volunteer leaders and staff through a process called Strategic Governance.
Nearly 70 volunteers and staff participated in that first two-day strategic planning event that established ASA’s first long-range strategic plan. Since then, the association’s leadership continues to annually meet to review ASA’s mission, where the association is going, what has changed to our assumptions and mission, and what needs to be tweaked to keep the association moving toward our envisioned future.
Last year, the association enhanced this process with a new governance structure. Today, each of the four strategic goals are now driven by a Strategic Council with each council establishing task groups that focus on short-term tactical plans to achieve the long-range plan of each council.
Very few associations successfully pull off bringing together such a large crowd of opinionated individuals into a planning session and walk away united in purpose and thought. Not only has the association pulled that off since 2008, but it’s what drives ASA today!
In early February at the 2023 ASA Strategic Planning Retreat in Naples Florida, more than 100 members and staff once again met to keep the association properly focused on the future horizon, reestablish the assumptions that the association is making,
what new initiatives the association will need to take and what successes we are making.
We also reflected back to our work 15 years ago and reaffirmed the association’s long-term vision of being indispensable to achieving prosperity in our industry with our shorter-term mission that guides the work of each ASA Strategic Council of being the unified voice that drives the success of the PHCP and PVF supply chain.
Each of the four strategic councils and their focus, when accomplished, will help ASA to achieve what we set out to accomplish during our first planning retreat.
Support members’ ability to be more profitable and sustainable through understanding market trends, enhancing operational efficiencies and providing relevant data intelligence to enhance our members’ decision-making. Strategies:
Provide ASA members with relevant business intelligence that drives sustainable innovation and operational performance excellence.
Assist ASA members in taking action to address changing customer purchasing trends that will support member marketing and sales efforts.
Support ASA members in being on the leading edge of leveraging and utilizing technology to enhance a member’s profitability through greater efficiencies.
Support ASA members in their ability to attract, develop and retain a skilled and diversified workforce that will become the best in the industry. Strategies:
Increase the number of talented workers taking advantage of rewarding career opportunities in the PHCP/PVF industry.
Assist ASA members by providing tools that will develop their workforce in all aspects of the business.
Increase visibility and utilization of ASA talent management support programs.
Remain focused on the ASA Education Foundation bylaws and the Karl E. Neupert Endowment Fund guidelines.
Create an engaging, unified and proactive voice of all the stakeholders within the PHCP/PVF industry to secure our members’ common interests in legislative, regulatory, and code and standards across all levels of government, while having a viable PAC to support these efforts. Strategies:
Expand the members’ and association’s leadership voice and ability to influence government, industry and stakeholders.
Develop and present a consistent and meaningful communication of association positions, priorities and advantages to key audiences, including members, potential members, government and customer groups.
Support members’ ability to be leading voices for industry issues and to engage in advocacy efforts that advance our issues and positions.
Educate ASA members on all trends in national, state and local legislation, codes and regulations that will impact their businesses.
Support members’ ability to succeed in the future by providing data, insights and best practices to address disruption and innovation in the channel. Strategies:
Encourage, educate and support member innovation. Create, collect and disseminate compelling data in support of member innovation.
Identify ideas, insights, threats and opportunities that are relevant to the industry in areas like/including: supply chain innovation, information technology, changing customer needs/ wants, digital transformation and data-related strategies.
It has been this strategic governance process that has enabled ASA to radically expand its value proposition to include economic forecasting programs, full-time recognized advocacy efforts at the state and national levels as well as in the codes and standards arena, robust and comprehensive educational programs delivered to employees in a relevant and cost-effective way, peer networking programs that engage all segments of a member’s operation, innovation and technology trends, as well as building robust employee recruitment programs.
Recent survey dives deep into eCommerce channel development and importance of robust product data as a service differentiator.
By Mike Miazga, Vice President Sales-OperationsAmerican Supply Association members are predicting an increase in 2023 eCommerce sales, that coming from a recent study ASA participated in with the Distribution Strategy Group (www.distributionstrategy.com), the Colorado-based firm that offers strategic guidance for distributors.
The overall survey queried sectors such as industrial, electrical, safety, HVACR, plumbing, building materials, safety, hardware, chemical and plastics, oil and gas products, JanSan and several others. The survey featured an 85-15% split between distributor and manufacturer participants.
In its findings, Distribution Strategy Group notes the JanSan category has the highest adoption and highest eCommerce maturity among sectors, while oil and gas has a higher maturity level. Electrical has high adoption and low
maturity, while building materials has the lowest adoption. DSG defines eCommerce as transactions including website, mobile and app, but excludes EDI, punchout, email and fax. Respondents identified what percent of total revenue went through the eCommerce channel.
In terms of eCommerce growth, 26% of ASA respondents are forecasting eCommerce growth of more than 10% in 2023, while 74% of ASA respondents noted a predicted increase of up to 10%.
Among some of the other survey highlights, DSG asked respondents to rate their satisfaction of their eCommerce investment. Fourteen percent of ASA respondents rated their satisfaction as very satisfied, while 45% said moderately satisfied and 17% stated they were not at all satisfied.
In terms of the overall survey response, DSG noted those companies that are highly satisfied with eCommerce are much higher in average eCom revenue (31% vs. 18% overall) and in a significant leadership position with 45% in the greater than 20% in eCommerce revenue compared to the 25% overall survey total.
To that point, DSG said when looking at the overall survey results, those companies that are highly satisfied with eCommerce are higher in customer-focused objectives, lower in ERP integration (already completed) and are much higher in increasing efficiency and productivity.
When it comes to what is most effective to drive eCommerce demand, 41% of ASA respondents said field sales reps, while 17% stated email marketing. Inside sales rep and SEO/organic search each had a 7% response from ASA survey participants.
The survey also asked about the financial objectives that are driving eCommerce investments. In terms of ASA respondents, 44% rated growing revenue with existing customers as a highest priority compared to the overall survey average of 28%.
Additionally, the survey tackled the subject of product data as it relates to eCommerce with one question asking how satisfied companies are with the quality and completeness of their product data. Only 3% of ASA respondents reported they were extremely satisfied with it, while 37% said somewhat satisfied and 27% said they were moderately satisfied, while 10% said they are not at all satisfied.
What means of obtaining product data also was asked with 37% of ASA respondents saying they very heavily rely on in-house sources, 30% said they very heavily rely on thirdparty associations.
According to the survey, the average ASA member has 47,945 SKUs, while the median for ASA respondents was 20,000.
In terms of the percentage of SKUs that have complete product data, including full attributes, at least one photo and a complete description, the average for ASA member
respondents was 41% while the median was 30%, both below the overall survey averages of 45 and 50, respectively.
For the percentage of product data that includes application or context-specific information (i.e. a control valve used in a food processing application will have a different description vs. the same product used in a commercial building), the average ASA company response was 19%, while the median was 5%. DSG notes there is a major opportunity for distributors to better serve customers and to differentiate from competitors in this regard.
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“The survey shows companies that are highly satisfied with eCommerce are higher in customer-focused objectives, lower in ERP integration and are much higher in increasing efficiency and productivity.”Fourteen percent of ASA respondents rated their satisfaction in their eCommerce investment as very satisified. Shutterstock photos.
By Taylor Kenney, Vice President of Education
You’ve done the research, laid out your plans, and now you have your very own training program at your business. The hard part’s done, right? Training is available and ready. The LMS is up and running. You couldn’t be prouder. And of course, your team members are champing at the bit to get to learning. Right?
Not quite. Although implementing training is a huge success, the best training plans focus on employee engagement and incentivization of training to ensure rapid uptake and consistent engagement on a regular basis. It’s not enough to simply “set it and forget it” – driving engagement with training is crucial to ensuring an impact on the business.
Although every effort should be made at the leadership level to demonstrate and connect the dots between the value of training and the “what’s in it for me” from the employee perspective, sometimes a little extra push is needed to achieve uptake of training.
Put simply, incentivization is an added “cherry on the top” reward to encourage participation in non-mandatory training. These might be new-skills training, leadership training or simply job-related training.
Although we’d like to think that every one of our team members is proactively invested in furthering their skills,
interest in self-directed learning varies. Star performers with career goals in mind may pounce on opportunities, while other employees may be content with their current skillset.
According to a recent survey of ASA members, about 38% of trainer respondents indicated they offer incentives for workers to encourage non-mandatory, elective training. Incentivizing your workers is a viable strategy to capture the attention of learners who typically would not engage with self-guided learning.
Before talking about how to incentivize employees, a word on motivation. Each team member is unique, and that extends to the perception of reward. Some employees are motivated by money; others prefer a public celebration of their achievements. Still, others would embrace training with open arms for that extra day of PTO, with no fanfare needed.
As you develop your strategy, keep in mind that value systems vary from individual to individual; it’s likely that a “one size fits all” plan will not appeal across the board.
38%
What types of incentivization can I use?
There are many approaches to incentivization; the first that usually comes to mind is monetary compensation. While this can be a compelling reward, businesses have a bottom line to consider, and things get tricky with assigning monetary rewards to specific training tasks. The last thing you want is a transactional “pay-for-play” system-gaming situation! There are dozens of other ways to incentivize training.
Career advancement incentivization: One of the most compelling ways to stimulate interest in optional training activities is to tie the employee’s efforts to potential career advancement. Those eager go-getters seeking the next rung on their career ladder are sure to sit up and pay attention!
That said, completing training activities alone does not warrant a leap in career, but it can be an indicator that an individual is ready for that next step. Be wary of a “promotion checklist” approach – training engagement should not be the only indicator in evaluating for leadership advancement.
Social incentivization: Social incentivization uses the power of public recognition to reward engaged employees. Individuals receptive to this reward system thrive in the public spotlight and on peer recognition. Social incentivization might look like:
A “Training Wall of Fame” in the breakroom
Blog entries or articles in company publications
Social media posts about their achievements
Again, not every individual would appreciate this approach. Consider how a shy, quiet employee might react to being brought up in front of the entire company to celebrate – pretty uncomfortable! Meanwhile, your gregarious team members would shine under this spotlight and revel in the attention.
Monetary incentivization: While it’s perfectly appropriate to tie monetary compensation to training engagement, typically you will see this strategy employed in the form of gift cards – whether it’s to Starbucks or Costco, a gift card is readily accessible, easy and customizable.
Some businesses have opted for a formalized “pay hike” approach, where completion of training warrants an additional per-hour pay raise, or an extra bump on their bonus. There is nothing wrong with this direct approach — but do think through all scenarios. What would happen if each of your team members earned an extra bonus or raise? Will the payroll withstand the rewards you have planned?
Company swag/branded gifts: Another way to excite employees about training (and bring awareness to your brand!) is to reward them with company swag or other branded tchotchkes to signify their achievements. It could be a T-shirt, coffee mug or baseball hat – the sky’s the limit! Maybe you even invest in special branded apparel only for training
champions, to distinguish them visually with their branded wear and get people asking, “How do I get one of those?”
Time off/PTO: Many employees highly value a healthy work-life balance, and an extra day of PTO can go a long way. Although loss of labor through a “freebie” PTO day does have some bottom-line impact, it’s easier to absorb than a permanent pay hike.
Also consider giving an employee the option of a longer lunch, later arrival time or any other flexibility with schedule. Many employees value time spent with family and friends, so while this is not a reward they can physically hold in their hand, it can mean a lot to a busy family.
Remember, this is YOUR plan. Riff on any of the strategies above or combine them for an especially motivating incentive for your learners. Some ideas may seem silly or trivial but can also serve to boost morale. Consider:
Quarterly “lunch out” for employees meeting their training goals
Pizza parties in the breakroom for anyone who completed training that month
Prime parking access / onsite building perks
Serving as a mentor / trainer for other employees
Sitting in on decision-maker meetings as an observer (e.g. exposure to leadership)
The possibilities are endless! Remember to keep motivational styles in mind, and you might discover even more creative ways to incentivize your employees to engage with training!
Monetary and social incentivization ranked top in effectiveness with 48% of survey respondents using these methods.
For more than a decade we have noticed a cadre of companies with profit rates far above those of their peers, and started looking for the common attributes that were driving rates of 15%, 20% and even 25%.
Let’s take a look at four attributes we found that were common markers of high-profit companies.
The top companies are really, really good at moving product. That is, they move more product value for less expense than their peers.
This has been achieved through a relentless focus on efficiency and productivity in their operations. Implementing incentive-driving efficiency measures such as OpCash ratios and ROX metrics and supporting productivity metrics at each stage of your logistics chain will result in continuously improving efficiency that increases this kind of competence.
represent the amount of profit opportunity (OpCash = Gross Profit) produced for a given expenditure.
(OpCash ratio = Gross Profit ÷ expenses)
(Return on Expenses) represents the actual profit return realized for dollars expended (ROX = Profit ÷ expenses)
quantify the things that drive OpCash ratios and ROX. They divide values into something you can count, like: OpCash per manhour, picks per hour, OpCash per delivery, deliveries per day, OpCash per sq ft, etc.
OpCash ratios and ROX metrics are used to quantify efficiencies at each step of the internal logistics chain (sales, order entry, assembly, warehouse, delivery, administration, etc.) at each location. They’re used both to determine improvements over time, and comparisons between locations to support incentives and personnel choices.
Efficiency measures can’t be directly controlled, but productivity measures that influence them can. For this reason, you’ll want to train managers on the creation and use of productivity measures and provide the support needed for these vital tools.
Every location that holds inventory increases the quantity and value of duplicated stock, and also duplicates the personnel needed to handle it. Top companies have a single distribution center, and substitute the most modern and creative delivery processes for proximity, providing on-time delivery matched to customer needs.
Most companies have grown by duplicating existing locations into new geographies and have done little rationalization. This makes them vulnerable to competitors that are a step beyond because they can’t meet the price advantage available from comparativelylower handling costs so their profits erode over time.
Optimizing product handling everywhere it’s done drives up OpCash ratios and ROX. Warehouse organization and zone picking have big impacts. Certain systems improvements, and even rudimentary automation can change these numbers significantly.
Where volume and pick frequency warrant it, flooring inventory at a customer location can provide a ROX gain. Although it goes against the stated objective, having customers pick their own inventory from a stock you replenish can be a game-changer for some accounts.
The top companies have exploited new and emerging delivery options, and have mostly shifted from their own fleets to third parties.
Most companies already offer a de facto range of delivery options. They’ll send an emergency truck or have a sales rep deliver the order. However, these are profit-eating exceptions that disrupt the orderly flow of business and cause a cascade of other expensive exceptions that magnify losses. Nobody can find paperwork from a sales rep delivery, so the customer won’t pay.
Top players have formalized the range of delivery options so time-scales can be chosen by the customer to meet the individual needs of each order. The customer can get moreexpensive same-day or next-day where it matters, nearpremium delivery in a couple of days or batched next-week delivery where lowest cost is desired. The company gets a serious reduction in screwups and expensive corrections.
Formalizing an expanded set of delivery options gives you a competitive advantage, facilitates increase in delivery revenue, reduces expenses and shifts more of your expense base into a variable cost that scales with your needs, and nearly eliminates profit-eating exceptions.
The most descriptive term I’ve heard that sums up the customer perspective on your relationship is “customer experience.”
What’s it like to do business with your company? Really.
For a super-performing company, the experience is smooth and trouble-free, and the causal relationship driving that result isn’t what you’d first expect.
The relentless focus on efficiency and productivity (plus the organizational elements that support them) means that customers get their product faster, with fewer errors and probably at the best price. High efficiency means profit rates that fund specialized expertise, concierge customer service and customer programs designed to make the customers more successful.
The customer experience delivered by the best companies isn’t based on donuts and small talk, rather it’s doing everything they can to make customers more successful. They’re focused on delivering the things customers want and are efficient enough to provide price advantages other companies can’t.
These attributes drive superior cash-flow, profit rates and market share. With very few exceptions, the attributes are available to every company — including yours.
Implementing the OpCash ratios and ROX metrics throughout the company, supported by the productivity measures that drive and support them, will immediately put you on track for market leadership.
Gather your team and get to work on these items to begin your advance to new records in cash-flow, profits and market share.
Randy MacLean is the founder of WayPoint Analytics, the inventor of LIPA, and best-selling author of a series of profit practices books. Visit www.waypointanalytics.net
About the book
This article is adapted from a section in Profit-Driven Analysis & Practices. The CEO’s Guide to Record Profits by Randy MacLean. The book explains the field of line-item profit analytics (LIPA), and how you can use its unique metrics and strategies to outperform everyone else in cash-flow, profits and market share. Get it on Amazon at https://amzn.to/3tjr2VM
At the beginning of January, Congress saw the results of the 2022 election as members were sworn in. The new and returning members saw the slightest of shifts in the majority of both chambers with Democrats taking a 51-49 majority in the Senate (compared to a 50-50 split in the previous Congress), and a 222-213 Republican majority in the House (216-213 Democratic majority with 6 vacancies previously).
Shortly after members arrived, a 15-round vote for Speaker of the House took place until Rep. Kevin McCarthy (R-CA) was elected. The challenge to his election did not come from the minority party, but factions within the Republican majority itself — providing keen insight into the challenges any legislative party caucus leader can face and a preview of debates to come in the 118th Congress.
In early February, roughly 100 ASA volunteer members gathered in Naples, Florida to attend the ASA Strategic Planning Retreat. One of the main topics of conversation was the value add that ASA Advocacy brings to its members and how that benefit can be enhanced now and into the future.
As mentioned previously, the partisan control of Congress shifted ever so slightly after the last election. In addition, Washington is likely in the midst of the most politically
turbulent time since the late 1800s. It was also fitting that President Biden gave his State of the Union address concurrent with the ASA event. Many were able to see how even during the President’s speech, there were frequent outbursts from the audience during the joint session of Congress (both for and against), in what is usually a fairly staid affair.
During this era of deep partisan divide, advocacy efforts take on an even larger role. At the time of writing, President Biden released his $6.9 trillion budget that aims to increase both spending and deficit reduction over the next 10 years. The Republican majority in the House will likely reject most provisions of this proposal outright, as the GOP aims to reduce spending in FY2024 by roughly $130 billion. They also propose to do this without any cuts to defense, Medicare or Medicaid spending.
At the same time, many House Republicans want to link any deal on the budget to the increase in the federal debt limit. The Treasury Department anticipates the federal government could start to default on its debt obligations as soon as this summer. In order to avert that, and the detrimental effects it would have on the economy, Congress needs to approve
an increase to the debt ceiling before then to allow the government to borrow more funds. Coupled with additional “must pass” measures such as a new farm bill, the annual National Defense Authorization Act, FAA reauthorization and other laws, Congress will have its work cut out for it. This is where advocacy comes into play.
Along with the hundreds of bills ASA Advocacy tracks at federal and state levels, the team also tracks federal and state regulatory proposals and changes to codes and standards that directly or indirectly affect the PHCP-PVF industry. While many of ASA’s members do not have the resources to invest in a comprehensive advocacy program for their own organizations, ASA’s Advocacy team allows our members to have influence at a higher level by navigating the legislative labyrinth, promoting policies that help our members grow, slow down or stop those that don’t, and provide guidance to help companies adjust to regulatory, code and tax shifts that may occur in the future.
Any members that have a question, comment, or concern about federal or state issues, please contact ASA VP of Advocacy Steve Rossi at srossi@asa.net
ASA has been engaged with other industry organizations in pursuing changes to the International Association of Plumbing and Mechanical Officials Uniform Mechanical Code related to the use of A2L refrigerants, and the acceptance of certain joining systems used in refrigeration systems.
Recently, the final stage of the process was completed with the IAPMO board considering petitions from industry to reconsider decisions reached by the UMC Technical Committee and the IAPMO Standards Council. Fortunately, the IAPMO board reviewed the petitions and ruled in support of the industry on the following proposals:
Use of Concealed Spaces as Plenums: The current UMC allows for the use of concealed building spaces or independent construction within buildings to be used for ducts or plenums. The IAPMO TC and SC supported a proposal to eliminate this allowance from the UMC. The board supported industry opposition to this change on the basis it would create conflict with other sections of the UMC. As a result, the current requirements will remain in place.
The IAPMO TC and SC rejected industry proposals to update the text of Chapter 11 of the UMC to be consistent with the most up-to-date requirements of ASHRAE 15 – 2022. Industry petitioned the IAPMO board to reconsider this decision for several reasons with the major reason being the potential confusion in the marketplace if the current requirements of ASHRAE 15 are not adopted into the UMC. The IAPMO board granted the industry petition and Chapter 11 will be updated to be consistent with ASHRAE 15 – 2022.
Referencing of Current Revision to UL-207: The IAPMO TC and SC rejected industry proposals to incorporate the current
edition of UL 207 Refrigerant-Containing Components and Accessories, Nonelectrical. Industry petitioned the IAPMO board to reconsider the decision based on potential confusion in the marketplace based on products being certified to the most recent version of the UL Standard and not previous versions, as well as lack of technical justification for not referencing the current standard. The IAPMO board supported the industry petition, and the current version of UL 207 will be referenced in the UMC.
In addition to the above IAPMO board actions, we also received a positive decision from the IAPMO SC in late 2022 related to our appeal on the TC Committee decision to accept a proposal to update the UMC to require all joints on refrigeration piping installed in concealed spaces shall be brazed. We appealed this decision to the IAPMO SC stating the proposed restriction would eliminate the use of joining systems and piping materials currently accepted in concealed locations without any technical justification for the restriction. The SC supported our position and removed the proposed restriction from the next publication of the UMC.
A big thank-you to our friends at the Air-Conditioning, Heating and Refrigeration Institute (AHRI) who played a key leadership role in bringing together all industry stakeholders to advocate for sound industry positions throughout the development process.
The efforts above along with all the activities of ASA Codes and Standards area are designed to ensure our members have the ability to produce and distribute high-quality and safe plumbing and PVF products in a free and open market without significant hinderance based on unrealistic requirements.
Every six weeks for the last 15 years I have enjoyed the incredible opportunity to spend the day with seven amazing peers.
The resulting thousand hours the eight of us shared were without question the most valuable of any time I spent in any setting during my career. The experiences and lessons they passed along saved me countless hours and dollars. Their willingness to challenge me through tough and pointed questions has given me the confidence to make decisions that built multiple businesses.
The trust we developed has allowed me to stretch my comfort zone and grow my creativity knowing I can test my ideas with them in a judgement-free space. As valuable as all of this has been to me, what stands out as the most important gift from these peers has been the certainty I am never alone in my journey. They are always with me, and I am always with them.
Our group came together through an association the eight of us had joined called Young President’s Organization (YPO). As a perk of membership, you can participate in what they call Forum. You are not assigned to a Forum in YPO. Instead, the other members determine whether you are a good fit for the
Forum, and you decide if the Forum is a good fit for you. During my time in this group, others have come and gone, but the eight of us together today have seen each other through ups and downs and everything in between over the last 15 years.
My intense positive experience with Forum and my business partner’s involvement in a similar group prompted us to pitch a member service offering to the American Supply Association that eventually came to be known as CONNECT.
CONNECT forums are comprised of members who share the same job responsibilities. Purchasing agents meeting with purchasing agents, HR managers sharing with other HR managers and financial officers exploring best practices with other financial officers are three examples of the nine rolespecific forums we offer.
Just as in my YPO Forum, we explore relevant and meaningful topics through CONNECT. Each member has the chance to share their pressing issues or challenges, and these are tackled in our one-hour monthly meetings. Through our proven facilitation program, we break down broad topics such as “recruiting new employees” into the bite-size morsels like “reducing no-show interviews” and “best practices for conducting Zoom interviews”
that are part of a broader subject. Those two morsels are examples of real challenges one of our HR forums has explored recently. Each month our members leave with takeaways to immediately put into practice at their company.
Just as in my YPO Forum, our CONNECT members ask tough questions of each other. Trust is the foundation of good experience sharing, and it’s what allows us to feel comfortable asking our peers what to outsiders might seem to be uncomfortable questions.
Knowing we all care about each other and having a set of rules which promote a safe environment creates the trust needed to build confidence in our solutions. I have been fortunate to witness many examples of this during our CONNECT meetings. It is a great feeling to experience a member who started an exploration uncertain of a course of action gain the belief their solution will benefit their company. Our members have been able to confidently present their recommendations to senior leadership because they tested them out in the trusting environment of a CONNECT forum.
Our CONNECT members know they are not alone. Even if you encounter customers, coworkers, and suppliers throughout your day, the distribution industry can often feel like a lonely place. One of the highlights of my time with the CONNECT program came during a Training Forum session.
We had a new training and development manager join the group, and after her fellow members introduced themselves and welcomed her to the call, she said with a huge smile on her face, “I am so happy to have found my people.” I didn’t realize how much I valued the feeling of “It’s nice to know I’m not alone” until hearing it from so many of our CONNECT members.
If your company is a part of the American Supply Association, you are eligible for a discount off CONNECT membership. You can join a CONNECT forum at any time during the year.
If you would like more details you can talk with an ASA representative (email connect@asa.net), one of us at Connected Peers, or even a CONNECT participant. Another option is to sit in on a meeting to find out if it’s right for you. There has been nothing more valuable in my business career than the time I’ve invested in my forum.
Our hope is CONNECT members will say the same thing about their forum experience.
Come give it a try.
Marshall Jones is a founding partner of Connected Peers Organization. Connected Peers brings together key employees in distribution’s leading companies to solve common challenges through online facilitated experience sharing. For more on the ASA CONNECT program, visit asa.net/ Meetings-Events/CONNECT. Email Marshall at marshall@ connectedpeers.com
ASA members from across the country descended upon Washington recently to help advocate for issues important to the PHCP-PVF industry. After a successful virtual legislative fly-in at the end of 2021, ASA advocates took full advantage of inperson meetings to promote the industry before senators, representatives and key staff alike.
Attendees received an issue briefing that covered the current state of industry-related proposals in both houses of Congress, the best way to present these measures, and the best times of year to invite their senators and representatives to visit their facilities. Some key issues included keeping current corporate tax rates, protecting LIFO inventory valuation, protecting family-owned businesses from increased estate taxes and water quality legislation.
After a legislative dinner punctuated by a keynote address from longtime Washington insider John Feehery, ASA members took the Hill the next morning not only with their respective members from their home states, but also had special meetings with friends to our industry such as Sen. Ted Budd (R-NC) and Rep. Rudy Yakym (R-IN), who took time to meet with ASA advocates and not only listen and take questions, but offered their insights on legislative status and current support.
With close to 40 legislative offices visited, ASA members made an immediate impact during a critical period in the legislative process.
