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INDIAN RIVER CONSULTING GROUP
Home arrow Channel Management arrow IDN Members Offer Integrated Solution
IDN Members Offer Integrated Solution Print E-mail
Written by Power Equipment Trade Staff   
[Originally Published in Power Equipment Trade Magazine]  

The Integrated Distributors Network (IDN) was founded in 2004 with a vision of creating a seamless network of distributors to provide sales and service programs for the lawn and garden power equipment industry across North America. The member companies had already provided responsive local sales and service support. Working as a network, the IDN is well positioned to meet the demands of today's competitive sales and service environment.

The IDN is a pioneer in developing a new way of doing business in a traditional industry and understands the power of change. According to Matthew Finn, Vice President of Central Power Systems, "The group has been working to create an infrastructure offering a menu of services and capabilities to the outdoor power equipment industry. We are very happy with our progress as a network and will continue to strive for enhanced services and opportunities for our customers." He adds that IDN's capabilities and new services now obtainable through a unified approach provide a multitude of benefits to dealers, from service support to physical distribution to specialized solutions.

 The IDN was created in November 2004, after Briggs & Stratton hired Indian River Consulting Group to look at its existing central distributors. "Their services were enlisted to conduct a study of how to maximize our distribution efforts given the current business climate," says Peggy Tracy, Briggs & Stratton Vice President and General Manager Service.

At the time of the study, Briggs & Stratton had 17 distributors in North America with 26 locations. "They (Indian River Consulting Group) did an in-depth analysis of each of the distributor's capabilities, and a number of factors were taken into consideration, from basics like physical facilities to less tangible qualities such as initiative in seeking out new opportunities. All of these variables were then entered into the equation, and those with the highest performance rating were the ones that added the greatest value to Briggs & Stratton."

The Indian River Consulting Group made its recommendations to Briggs & Stratton, which included downsizing its distributor network to the seven current IDN members. The IDN was an idea that started with Briggs & Stratton's desire to have a unified distribution group that could deliver North American solutions. "The Indian River Consulting Group recognized the members of the Integrated Distributors Network as seven of the best distributors in the outdoor power equipment industry - or in any other industry for that matter," Tracy says.

The Difference

What is the difference between Integrated Distributors Network and other traditional distributors? Bill Fritz, Vice President of Midwest Engine Warehouse, points to teamwork as the key. "The Integrated Distributors Network members work together to bring the best possible sales and service solutions to our customers." Each member has access to what Fritz describes as a "seamless inventory

Lowrance Harry, President of Preferred Power, offers this real-world example: "If a dealer needs to get a part and his local IDN member does not have inventory on that part, that IDN member can search across the network in realtime and source it from any of IDN members. Because IDN members have access to each other's inventory, they can have it drop-shipped directly to that customer in less than 24 hours. This is a huge plus for the dealer and his customer."

"We're distributing parts and service as a network," Fritz adds. "The point is to bring solutions to companies in the lawn and garden power equipment market." Mark Polzin, President of Magneto Power, emphasizes the one-stop-shop aspect for dealers for all of their product, service and sales support needs. "Dealers, retailers and OEMs will all benefit from this cohesive support system," Polzin says.

Shared inventory within the network provides opportunities to fulfill just about any order any time. Finn provides a true example from Hurricane Charlie in August 2004. When Central Power Systems faced a depleted inventory of generators and other equipment at a warehouse in Tampa, the IDN activated its "storm readiness plan" to supply customers before the hurricane made landfall. "We had considered the logistics and put a system in place to get those products to where they needed to be when they were needed, and a lot of dealers in Florida benefited from it" he says.

Frank Manno, President of SEDCO, adds that IDN had the same system in place for its southern district before Katrina hit this August. "Our synergy and integration allow dealers to benefit from the national inventory if local supply is depleted - especially in crisis situations," Manno says, adding that IDN members are continually refining these processes to add greater value to all of their customers.

Benefits

Aside from access to the shared North American inventory, John Stephenson, President of Atlantic Power, says dealers and consumers enjoy a number of benefits from working with the IDN, citing educational programs, fill rates, timely delivery and the diverse product lines carried. "You get world class distribution, top-notch education, the best sales and support, and the greatest product selection and availability," Stephenson says.

With a collective 18 strategically located Parts Distribution Centers (PDCs), the IDN reports shipments of more than 1 million orders annually. The network has more than 170 sales professionals in the field, each with an average experience of 12-15 years in the industry; more than 90 customer service associates and more than 50 warranty and technical administrators.

The IDN provides educational opportunities to its dealers through 13 education directors and more than 43,000 sq. ft. of training facilities throughout North America. Schools and training sessions are conducted at in-house training facilities and in the field, and IDN members conducted hundreds of schools in North America in 2004.

"We can teach dealers how to set up a shop more efficiently and how to look at financials and properly allocate costs," says Stephenson. Classes and seminars are given on sales and service, and product training includes both theory and hands-on practice with small engine repair.

Partners

The IDN carries many of the leading brands in the industry, currently carrying Briggs & Stratton service parts and equipment, Electrolux Consumer Outdoor Products (including service parts and Poulan Pro handheld and wheeled equipment), Dolmar Power Products and NGK Spark Plugs.

The members of the Integrated Distributors Network have all been Briggs & Stratton distributors for many years. As a leader in the lawn and garden power equipment industry and architect of the IDN, the management of Briggs & Stratton strongly supports the new organization.

"We were looking for companies that exhibited best practices in sales, service, operations and strategy," says Briggs & Stratton's Vince Shiely, Vice President and President, Home Power Products Group. During a recent sales meeting with all of the salespeople from the IDN, "The management of Briggs & Stratton was thrilled to see the strength and breadth of the Integrated Distributors Network sales team," Shiely says.

Chad Cook, Director of Poulan Pro Sales, says the IDN will increase the company's overall market share. "Partnering with the IDN makes good sense for Electrolux Consumer Outdoor Products. We want consumers to have access to our parts and equipment at outdoor power equipment dealerships, and the Integrated Distributors Network currently serves thousands of outdoor power equipment dealers.

Dolmar executives were in search of a method to support an aggressive overhaul of the brand and product assortment for servicing dealers. The IDN provided Dolmar with immediate solutions, intermediate opportunities and long-term strategies, consistent with their dedication to the brand for the industry. "The Integrated Distributors Network's dedication, caliber, expertise and knowledge of power equipment distribution is unequaled" says Trey Brown, General Manager of Dolmar Power Products.

Mike Schwab, General Manager of Sales and Marketing for NGK Spark Plugs, USA, recognizes the opportunity of working with the IDN and enhancing the distribution of NGK Spark Plugs. "We work hard to produce the best products and we must align ourselves with the best distributors," he says. "We feel the Integrated Distributors Network understands our commitment to a quality brand and image because they operate under many of the same principles."

The IDN seeks to become the best option for distribution. According to Roy Baillie, President of Power Source Canada, "When companies from North America, as well as companies from around the world have a need for distribution, sales, service, education, in the United States and Canada, they can depend on the Integrated Distributors Network to hit the ground running."

 

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