30 BIG INTERVIEW
KEEP CALM &
collaborate A fervent advocate of the independent dealer channel, Independent Suppliers Group CEO Mike Gentile urges his members – and our various industry constituents – to be open-minded and embrace the changes that are needed to succeed in an ever-evolving sector
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n 2018, when OPI last spoke to Mike Gentile for a Big Interview, there was much talk about a ‘big-tent philosophy’. Since that time, the vision has come to pass, and the tent has grown immeasurably. Now solely at the helm of the merged Independent Suppliers Group (ISG) following the departure last year of Mike Maggio, Gentile had little time to dwell on the new status quo, having already been thrust into the middle of a global pandemic several months earlier. Many years of experience, an unflappable disposition, and a razor-sharp focus on the independent dealer channel (IDC) have enabled him to keep calm and guide the group’s members towards a post-COVID world. OPI CEO Steve Hilleard spoke to the long-standing and highly-respected US industry executive for this extended celebratory 30th anniversary issue – and, of course, ahead of the much-anticipated Industry Week, powered by ISG, which is due to take place in Orlando, Florida, this November.
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OPI: ISG, as it stands currently and in its previous iterations, has been featured many times in OPI over the years, so let’s start with the present. What does ISG look like in the middle of 2021? Mike Gentile: Right now, we have 794 members. We lost some dealers in the past few months due to attrition and M&A activity. ISG is a big-tent organisation for several entities. As a member-owned cooperative, we have approximately 570 shareholders, but we also have Access members which are non-shareholders. Those members value the programmes and services that ISG offers. The group further comprises IS Contract – our contract furniture group; INTEC, our technology and managed services group of resellers; Federal Base Supply Stores; and national accounts organisation EPIC Business Essentials.
Overall, we do over $500 million in direct buy, with combined member revenues of $6.9 billion. Our mission statement is that “ISG empowers its members with purchasing programmes, sales and marketing tools, and leverages the combined size, strength, knowledge and experience so its members can succeed in their marketplace”. OPI: How would you say the numbers are trending, year on year? Obviously, you have the pandemic effect to figure out, but is the underlying trend moving forward? MG: Our membership count is somewhat linear. We lost members due to M&A activity in the channel and some dealers closed their doors, but fortunately, we also added 28 new dealers. Some are non-traditional OP resellers. In 2019, we did close to $540 million in direct buy, so during the pandemic we were down approximately 18%. But we are coming back now because members are buying more direct, and we have added many new suppliers. OPI: The purpose of the merger with TriMega Purchasing Association and Pinnacle Affiliates was to reduce redundant operating expenses across the three groups and leverage dealers’ combined strengths. To what extent have those two primary objectives been achieved so far?
