Facing the forces of change survey results segmented by customer type_november 2011

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Transcript of Facing the forces of change survey results segmented by customer type_november 2011

1 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Online Survey ResultsSegmented by Customer Type

388 total responses

2 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Guy BlissettWholesale Distribution LeadIBMGuy.Blissett@us.ibm.com(917) 224-9868

Guy BlissettWholesale Distribution LeadIBMGuy.Blissett@us.ibm.com(917) 224-9868

Leading distributors are taking decisive actions and investing toposition themselves for a complex future

Decisive Actions for an Uncertain EconomyLatest iteration ofFacing the Forces of Change®

Available via the N.A.W. website:http://www.naw.org/

3 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Customer types

Otherwholesaler-distributors

Non-profitsand

governmentinstitutions

Independentand chain

restaurants,cafeterias

HealthcareProviders

CommercialFacilities

RetailStores

IndustrialManufacturing

Facilities

Contractors

Notes:

• Number of respondents to each question varies… see Sample Size figure oneach chart for specifics

• Y-axis scale differs from chart to chart… avoid using visual comparisons

• Each chart is an embedded Excel file

Notes:

• Number of respondents to each question varies… see Sample Size figure oneach chart for specifics

• Y-axis scale differs from chart to chart… avoid using visual comparisons

• Each chart is an embedded Excel file

4 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Participant title

64%

23%

7% 6%

64%

23%

7% 6%

56%

37%

2%5%

60%

40%

75%

13% 13%17%

33%

17%

33%

50%

25% 25%

41%

33%

16%10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CEO / COO / Pres ident /Other C-Suite

Director / Vice Pres ident Regional / Branch / SalesManager

Other (describe incom m ents box)

Sample Size = 349

5 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Ownership structure

95%

5%

91%

9%

95%

5%

100%

0%

100%

0%

100%

0%

100%

0%

92%

8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Privately Held Publicly Traded

Sample Size = 348

6 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Organization Size: Total annual sales

35%

22%

29%

2%5%

7%

42%

17%

8%

2%

18%21%

40%

5%9%

100%

25% 25% 25%

13% 13%

50%

33%

17%

75%

25%

54%

12%

18%

6% 4% 6%

27%

4%7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less than $20million

$20 million to $50million

$50 million to $250million

$250 million to$500 million

$500 million to $1billion

$1 billion or more

Sample Size = 347

7 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Geographic sales coverage

19%

48%

21%

11%12%

37%

26% 25%

9%

38%41%

13%

40% 40%

20%

0%

13%

38%

50%

0%

33%

67%

0% 0%

25%

50%

0%

25%

8%

18%

37% 37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Local Regional: Multi-Regional / National Multi-National

Sample Size = 349

8 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Organization description: Type of sales

52%

39%

9%

48%44%

8%

45%

36%

18%

60%

20% 20%

50%

38%

13%

83%

17%

0%

25%

50%

25%

49%

29%22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

General Line Firm: 90% of salesf rom more than f ive lines of trade

Specialty Firm: 90% of sales f romtw o to f ive lines of trade

Limited Firm: 90% of sales f rom asingle line of trade

Sample Size = 341

9 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Primary products

12% 11%

5%

13%

49%

12%

44% 43%

5%9%

6%

63%

22%

9%

40%

20% 20% 20%

14% 14%

29%

43%

17%

33%

50%

25%

50%

25%

10%

16%

4%

24% 24%22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MRO OEM CapitalEquipm ent

Resale for retail Resale forservice

Other

Sample Size = 338

10 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Sell product and offer fee-based services

37%

46%

16%

26%

62%

11%

45% 43%

11%

50% 50%

14%

57%

29%

20%

80%

50%

25% 25%

40%45%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 282

11 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Offer discrete services to customers for a fee

52%

36%

13%

35%

55%

10%

60%

33%

7%

25%

50%

25%29%

71%

0%

60%

20% 20%

75%

25%

0%

50%

42%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 275

12 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Offer third-party logistics to customers as a fee-based service

59%

20% 21%

65%

26%

9%

49%

32%

20%

50% 50%

0%

57%

43%

0%

50% 50%

0%

75%

25%

0%

50%

34%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 273

13 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Optimize network design

31%

51%

19%

35%

49%

16%

34%

41%

24%

75%

25%

43% 43%

14%

50% 50%50% 50%

27%

65%

8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 268

14 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Outsource our company’s warehouse operations to a third-party

91%

7%2%

94%

6%

80%

10% 10%

75%

25%

86%

14%

100%100%

81%

11% 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 267

15 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Outsource additional non-core administrative activities

59%

31%

11%

70%

21%

9%

71%

24%

5%

25%

50%

25%

43%

57%

25%

75%

50% 50%

62%

27%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 269

16 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Outsource elements of IT infrastructure

44%

37%

20%

44% 44%

13%

44%39%

17%

25%

75%

57%

43%

75%

25%25% 25%

50%

32%

51%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 269

17 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Create / grow presence in geographic markets outside U.S.

68%

20%13%

43%37%

20%

62%

31%

8%

100%

57%

14%

29%

75%

25%

75%

25%

38%

49%

13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 270

18 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Stop doing business with highly unprofitable customers

4%

76%

20%

7%

79%

14%10%

76%

14%

25%

50%

25%

71%

29%

100%

25%

75%

16%

70%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 275

19 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Manufacture our own private-label products in an overseas plant

80%

14%

6%

68%

15% 16%

51%

33%

16%

100%

71%

29%

50% 50%

100%

68%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 270

20 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Market our own private label products

34%

48%

17%

45%

35%

20%

37%

51%

12%

100%

14%

43% 43%

50% 50%

25%

50%

25%30%

65%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 273

21 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Participate in buying group/ marketing alliance with other distributors

21%

73%

7%

35%

48%

17%

45% 43%

12%

25%

75%

86%

14%

83%

17%

25%

75%

37%

58%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 279

22 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Company Strategy:Create strategy for current and future human capital requirements

9%

60%

31%

16%

59%

24%

13%

78%

10%

25%

50%

25%

14%

57%

29%25% 25%

50%

25%

50%

25%29%

53%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our company has no plans to dothis

Our company does this today Our company does not do thistoday, but w ill by 2015

Sample Size = 273

23 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Increased product traceability

57%

34%

9%

44%

19%

36%

46%

29%24%

50%

25% 25%

0%

50% 50%

20%

60%

20%

75%

25%

0%

34%

26%

39%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 272

24 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Increased product traceability

46%

35%

19%

31%

23%

45%

34%40%

26%

0%

100%

0%0%

60%

40%

20%

40% 40%

50% 50%

0%

27% 27%

47%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 229

25 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Growth of green bus segments

13%

44% 44%38%

46%

16%15%

56%

29%

50% 50%

17%

50%

33%

20%

80%

25% 25%

50%

26%

41%

33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 273

26 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Growth of green bus segments

7%

36%

57%

24%

45%

32%

9%

46% 46%

0%

33%

67%

20%

60%

20%

0%

20%

80%

0%

50% 50%

19%

42%39%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 231

27 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Private label products

27%

46%

26%

40%34%

26%29%

37% 34%

75%

25%

0%0%

33%

67%

20%

40% 40%

25%

75%

0%

18%

32%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 270

28 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Private label products

22%

42%36%

29%

38%34%

23%

34%

43%

33%

67%

0%0%

40%

60%

40%

20%

40%

0%

50% 50%

16%

29%

55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 230

29 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Disintermediation

24%

42%

34%33%29%

38%

20% 22%

59%

25% 25%

50%

17%

83%

40% 40%

20%25%

75%

24%30%

46%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 269

30 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Disintermediation

22%

42%

36%

23%

40%36%

11%

34%

54%

33%

67%

0%0%

40%

60%

40%

0%

60%

0%

50% 50%

20%

47%

33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 230

31 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:End customer consolidation

29%

55%

15%10%

53%

36%

17%

37%

46%

25% 25%

50%50% 50%

20%

40% 40%

50% 50%

16%

51%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 270

32 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:End customer consolidation

15%

60%

25%

12%

39%

49%

20%23%

57%

0%

33%

67%

0%

40%

60%

0%

40%

60%

0%

50% 50%

10%

43%47%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 229

33 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Industry consolidation

12%

49%

39%

9%

40%

51%

17%

39%44%

25%

50%

25%

33%

17%

50%

0%

40%

60%

0%

75%

25%22%

38% 41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 269

34 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Industry consolidation

3%

49% 48%

5%

37%

58%

3%

37%

60%

0%

33%

67%

0%

40%

60%

0%

40%

60%

0%

50% 50%

13%

37%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 229

35 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Supplier consolidation

13%

60%

27%

17%

49%

34%

15%

54%

32%

25% 25%

50%50% 50%

20% 20%

60%

25%

50%

25%

32%

47%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 271

36 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Supplier consolidation

7%

53%

40%

9%

39%

51%

14%

40%46%

0%

33%

67%

0%

40%

60%

20% 20%

60%

0%

50% 50%

13%

60%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 228

37 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Overseas competitor expansion

44%40%

15%

33%

42%

25%

34%

44%

22%

75%

25%

83%

17%

60%

20% 20%

50% 50%

24%30%

46%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 266

38 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Overseas competitor expansion

40%37%

23%18%

46%

36%

29%

46%

26%

0%

67%

33%

40%

60%

0%

60%

0%

40%

50% 50%

0%

17%

33%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 229

39 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Macro-econ impact of crisis

5%

16%

79%

7%

36%

57%

24%

76%75%

25%

67%

33%

100%

25%

50%

25%

6%

25%

69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 268

40 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Macro-econ impact of crisis

18%

44%

38%

24%

38% 38%

11%

43%46%

0%

100%

0%

40% 40%

20%20%

60%

20%

0%

50% 50%

30%

43%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 228

41 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:U.S. economy structural shift

12%

44% 45%

8%

30%

62%

15%

49%

37%

25%

75%

50% 50%

20%

80%

50% 50%

11%

32%

57%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Sample Size = 269

42 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:U.S. economy structural shift

11%

61%

28%

3%

42%

55%

11%

49%

40%

0%

67%

33%

40% 40%

20%

0%

20%

80%

0%

50% 50%

17%

43%40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Col

umn

%

Sample Size = 228

43 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Government regulation

5%

42%

53%

10%

41%

48%

12%

34%

54%50% 50%

17% 17%

67%

40%

60%

25% 25%

50%

19%

27%

54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Col

umn

%

Sample Size = 269

44 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Government regulation

4%

26%

69%

8%

36%

57%

3%

37%

60%

0%

33%

67%

20% 20%

60%

0%

40%

60%

0%

50% 50%

13%

33%

53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Col

umn

%

Sample Size = 228

45 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Today:Product complexity

72%

24%

5%

63%

26%

11%

66%

34%

0%

25%

50%

25%

50% 50%

0%

60%

20% 20%

75%

0%

25%

73%

22%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Col

umn

%

Sample Size = 270

46 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Factors Impacting Future:Product Complexity

51%

35%

14%

43%

33%

24%

49%46%

6%0%

100%

0%

60%

40%

0%

60%

20% 20%

50% 50%

0%

53%

40%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less signif icant Moderately signif icant More signif icant

Col

umn

%

Sample Size = 228

47 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Headcount Trend:Customer service & inside sales force

28%

38%35%

25%

41%

33%

42%

36%

22%

33%

67%

0%0%

60%

40%

20%

60%

20%

0%

50% 50%

25%28%

47%

0%

10%

20%

30%

40%

50%

60%

70%

Decreasing Flat Increasing

Col

umn

%

Sample Size = 230

48 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Headcount Trend:Outside sales force

32%

18%

50%

17%

40% 43%

25%

36% 39%33%

0%

67%

0%

20%

80%

0%

40%

60%

0%

100%

0%

26%23%

52%

0%

20%

40%

60%

80%

100%

120%

Decreasing Flat Increasing

Col

umn

%

Sample Size = 229

49 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Headcount Trend:Warehouse/transportation

40% 39%

21%27%

61%

12%

44% 41%

15%

0%

60%

40%40%

20%

40%

0% 0%

100%

31%

53%

16%

0%

20%

40%

60%

80%

100%

120%

Decreasing Flat Increasing

Col

umn

%

Sample Size = 228

50 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Headcount Trend:Administration / Management

41%47%

12%

31%

57%

12%

50%

39%

11%

33%

67%

0%

20%

60%

20%

40% 40%

20%

0%

100%

0%

23%

68%

10%

0%

20%

40%

60%

80%

100%

120%

Decreasing Flat Increasing

Col

umn

%

Sample Size = 230

51 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

INCREMENTAL BUSINESS NEEDECustomer service & inside sales force

34%

50%

16%

22%

61%

18%18%

47%

35%33% 33% 33%

20%

60%

20%

0%

75%

25%

0%

50% 50%

18%

33%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0-10% sales increase 10-25%sales increase Over 25% sales increase

Col

umn

%

Sample Size = 231

52 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Incremental Business Needed:Outside sales force

28%

49%

24%30%

47%

23%

14%

51%

34%33%

67%

0%

20%

60%

20%

0%

100%

0%

50% 50%

0%

28%

47%

25%

0%

20%

40%

60%

80%

100%

120%

0-10% sales increase 10-25%sales increase Over 25% sales increase

Col

umn

%

Sample Size = 231

53 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Incremental Business Needed:Warehouse/transportation

28%

55%

16%23%

45%

32%29%

50%

21%

0%

67%

33%40% 40%

20%

0%

50% 50%

0%

100%

0%

28%

44%

28%

0%

20%

40%

60%

80%

100%

120%

0-10% sales increase 10-25%sales increase Over 25% sales increase

Col

umn

%

Sample Size = 228

54 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Incremental Business Needed:Administration / Management

14%

26%

59%

8%

27%

65%

6%

15%

79%

0%

33%

67%

20% 20%

60%

0% 0%

100%

0%

50% 50%

6%

18%

76%

0%

20%

40%

60%

80%

100%

120%

0-10% sales increase 10-25%sales increase Over 25% sales increase

Col

umn

%

Sample Size = 231

55 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing sales force productivity

6%

21%

73%

7%

21%

72%

0%

17%

83%

0%

67%

33%

0%

17%

83%

0% 0%

100%

0% 0%

100%

3%

16%

81%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 222

56 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing sales force productivity

13%

57%

30%

12%

51%

37%

9%

54%

37%33% 33% 33%

20%

40% 40%

0%

50% 50%

0% 0%

100%

4%

50%46%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 202

57 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assess warehouse/ transportation personnel productivity

10%

49%42%

23%

35%42%

11%17%

71%67%

33%

0%0%

67%

33%

0%

33%

67%

0% 0%

100%

13%

40%47%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 221

58 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assess warehouse/ transportation personnel productivity

16%

56%

29%

17%

52%

31%

9%

56%

35%

67%

33%

0%0%

40%

60%

0%

50% 50%

0%

100%

0%

11%

46%43%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 201

59 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing customer service personnel productivity

3%

40%

57%

7%

28%

65%

6%

19%

75%

100%

67%

33%33%

67%

100%

30%

70%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 222

60 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing customer service personnel productivity

13%

65%

22%

11%

58%

31%

9%

54%

37%

67%

33%

0%

20%

60%

20%

0%

100%

0%0%

100%

0%4%

54%

43%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 202

61 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing product profitability

6%

28%

67%

7%

32%

61%

0%

11%

89%

0%

33%

67%

0%

17%

83%

0% 0%

100%

0% 0%

100%

0%

16%

84%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 222

62 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing product profitability

10%

59%

32%

2%

63%

35%

0%

53%47%

0%

100%

0%

20%

40% 40%

50%

0%

50%

0% 0%

100%

0%

25%

75%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 201

63 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing service offering profitability

21%

43%36%

14%

32%

54%

14%

39%

47%

0%

33%

67%

0%

67%

33%

0% 0%

100%

0%

100%

0%

23%29%

48%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 224

64 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing service offering profitability

33%

52%

14%22%

55%

23%

15%

56%

29%33%

67%

0%

40%

60%

0%

33%

0%

67%

0% 0%

100%

25%

50%

25%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 202

65 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing customer profitability

6%

43%

51%

6%

27%

68%

6%

28%

67%

0%

67%

33%

0%

50% 50%

0%

25%

75%

0% 0%

100%

13%

32%

55%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 224

66 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Assessing customer profitability

16%

63%

21%

8%

58%

34%

9%

62%

29%

67%

0%

33%40%

60%

0%

33% 33% 33%

0% 0%

100%

14%

39%46%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 202

67 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Optimizing prices

0%

29%

71%

4%

31%

65%

3%

11%

86%

0%

33%

67%

17% 17%

67%

0% 0%

100%

0% 0%

100%

6%

23%

71%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 223

68 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Optimizing prices

19%

54%

27%

8%

61%

31%

12%

47%41%

0%

100%

0%

40%

60%

0%

33%

0%

67%

0%

100%

0%4%

54%

43%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 201

69 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Optimizing inventory

10%

31%

59%

10%

18%

72%

0%

11%

89%

33%

67%

0%0%

17%

83%

0% 0%

100%

0% 0%

100%

10%

23%

68%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 222

70 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Optimizing inventory

13%

49%

38%

8%

50%42%

6%

47% 47%

33%

67%

0%

20%

40% 40%

0%

67%

33%

0% 0%

100%

14%

43% 43%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 201

71 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Sensing end product/ service demand

15%

51%

34%

15%

37%

48%

9%

37%

54%

33%

67%

0%0%

50% 50%

0%

25%

75%

0% 0%

100%

3%

26%

71%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 222

72 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Sensing end product/ service demand

33%

41%

25%20%

52%

28%21%

62%

18%

33%

67%

0%

20%

60%

20%

0%

67%

33%

0%

100%

0%

18%

61%

21%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 202

73 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Building own brand recognition

47%

26% 26%

51%

28%21%

40%

26%

34%

100%

0% 0%

33% 33% 33%

25% 25%

50%

0% 0%

100%

19%

10%

71%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 223

74 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Building own brand recognition

42%35%

23%

49%

37%

14%

36%

55%

9%

50%

0%

50%

0%

80%

20%

0%

67%

33%

0% 0%

100%

26%

37% 37%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 196

75 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Building company brand/name recognition

4%

39%

57%

6%

20%

75%

8%

31%

61%

0%

33%

67%

0%

17%

83%

0%

50% 50%

0% 0%

100%

0%

19%

81%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 224

76 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Organization:Building company brand/name recognition

10%

54%

37%

6%

60%

34%

9%

56%

35%

0%

67%

33%

20%

40% 40%

0%

67%

33%

0% 0%

100%

4%

57%

39%

0%

20%

40%

60%

80%

100%

120%

Less important Moderately important More important

Col

umn

%

Sample Size = 202

77 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Supplier rebates based on total purchases in a time period

12%17%

71%

30%27%

42%

24%21%

56%

0%

33%

67%

17%

33%

50%

0% 0%

100%

0% 0%

100%

36%

21%

43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 207

78 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Supplier rebates based on total purchases in a time period

10%

21%

69%

27%31%

42%

21%27%

52%

0%

33%

67%

0%

40%

60%

0% 0%

100%

0% 0%

100%

42%

19%

38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 197

79 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Supplier discounts based on volume

11%

23%

67%

11%

36%

53%

12%

29%

59%

0%

100%

0%

17% 17%

67%

0% 0%

100%

0% 0%

100%

10%

21%

69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 208

80 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Supplier discounts based on volume

10%15%

76%

16%22%

63%

6%

48%45%

0%

67%

33%

0%

40%

60%

0%

33%

67%

0% 0%

100%

19%

11%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 198

81 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Supplier discounts based on the performance of activities

32%

42%

26%32%

41%

27%

21%

35%

44%

33%

67%

0%

17%

33%

50%

0%

67%

33%

0% 0%

100%

34%38%

28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 208

82 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Supplier discounts based on the performance of activities

16%

44%40%

23%

34%

42%

24%

15%

61%

0%

67%

33%

20% 20%

60%

0%

33%

67%

0% 0%

100%

37%33%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 198

83 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Purchase at a wholesale discount

9%12%

79%

6%

17%

77%

12%9%

79%

0% 0%

100%

17%

0%

83%

0% 0%

100%

0% 0%

100%

30%

17%

53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 209

84 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Purchase at a wholesale discount

6%13%

81%

13% 14%

73%

6%3%

91%

0%

33%

67%

0%

20%

80%

0% 0%

100%

0% 0%

100%

33%

7%

59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 198

85 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Co-op marketing funds from suppliers

26%

35%39%38% 39%

23%24%

35%41%

67%

0%

33%33% 33% 33%

0%

33%

67%

0% 0%

100%

38%

28%

34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 208

86 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Co-op marketing funds from suppliers

24%

35%40%39% 38%

23%24%

36%39%

33%

67%

0%

20%

40% 40%

0%

33%

67%

0% 0%

100%

41%

22%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 198

87 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Fee-for-service payments from customers

47%

33%

20%

35%39%

26%

44%41%

15%

0%

67%

33%

50%

33%

17%

33% 33% 33%

0%

100%

0%

59%

34%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 208

88 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Fee-for-service payments from customers

24%

45%

31%

20%

30%

50%

27%33%

39%

0%

33%

67%

40%

20%

40%

0%

33%

67%

0%

100%

0%

52%

30%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 198

89 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Fee-for-service payments from suppliers

61%

32%

8%

59%

30%

11%

44% 44%

12%

100%

0% 0%

67%

0%

33%

67%

0%

33%

100%

0% 0%

72%

14% 14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 208

90 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Fee-for-service payments from suppliers

39%42%

19%

42% 41%

17%

27%33%

39%

0%

100%

0%

40%

20%

40%

33% 33% 33%

0% 0%

100%

63%

22%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 197

91 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Purchasing extra product in advance of price increase

24%

42%

33%27%

45%

27%

6%

44%50%

0%

100%

0%

17%

50%

33%

0%

67%

33%

100%

0% 0%

38%41%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 208

92 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Purchasing extra product in advance of price increase

18%

50%

32%28%

41%

31%

9%

36%

55%

0%

67%

33%

20% 20%

60%

0%

67%

33%

100%

0% 0%

48%

30%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 198

93 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit Today:Product mark-ups to customers

6%

14%

80%

2%

17%

82%

0%

18%

82%

0%

33%

67%

17% 17%

67%

0% 0%

100%

0% 0%

100%

10%

24%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 208

94 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Importance to Gross Profit in Future:Product mark-ups to customers

2%

18%

81%

5%

17%

78%

3%

18%

79%

0%

33%

67%

20% 20%

60%

0% 0%

100%

0% 0%

100%

11%

33%

56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 198

95 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

3PL Activity: Warehousing

72%

8%

20%

73%

13% 14%

61%

18% 21%

67%

0%

33%33% 33% 33%33%

67%

0%

100%

0% 0%

63%

21%17%

0%

20%

40%

60%

80%

100%

120%

Do not expect 3PL to be acompetitive threat

3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015

Col

umn

%

Sample Size = 193

96 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

3PL Activity: Order Fulfillment to customers

67%

10%

23%

62%

16%22%

52%

24% 24%

33% 33% 33%

17%

33%

50%

0%

67%

33%

100%

0% 0%

57%

13%

30%

0%

20%

40%

60%

80%

100%

120%

Do not expect 3PL to be acompetitive threat

3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015

Col

umn

%

Sample Size = 193

97 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

3PL Activity: Kitting/Assembly/Packaging

73%

13% 13%

67%

16% 17%

76%

12% 12%

67%

0%

33%33%

0%

67%67%

33%

0%

100%

0% 0%

70%

22%

9%

0%

20%

40%

60%

80%

100%

120%

Do not expect 3PL to be acompetitive threat

3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015

Col

umn

%

Sample Size = 192

98 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

3PL Activity: Transportation

47%

22%

32%

65%

17% 17%

45%

36%

18%

100%

0% 0%

67%

17% 17%

33%

67%

0%

100%

0% 0%

70%

17%13%

0%

20%

40%

60%

80%

100%

120%

Do not expect 3PL to be acompetitive threat

3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015

Col

umn

%

Sample Size = 192

99 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

3PL Activity: After Sales activities and support

77%

8%15%

79%

8%13%

70%

15% 15%

67%

0%

33%

83%

0%

17%

0%

67%

33%

100%

0% 0%

74%

4%

22%

0%

20%

40%

60%

80%

100%

120%

Do not expect 3PL to be acompetitive threat

3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015

Col

umn

%

Sample Size = 192

100 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Channel strategy of largest supplier:Work with our company to develop joint service to sell to end users

31%

56%

13%

20%

57%

23%25%

63%

13%

0%

100%

0%

33%

50%

17%

0%

50% 50%

32%

58%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our largest supplier has no plansto do this

Our largest supplier does thistoday

Our largest supplier does not dothis now , but w ill by 2015

Sample Size = 177

101 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Channel strategy of largest supplier:Reduce the number of distributors that this supplier sells through

44%

27% 29%

42% 42%

15%

38% 38%

25%

0% 0%

100%

67%

33%

0%

50% 50%

0%

42%37%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our largest supplier has no plansto do this

Our largest supplier does thistoday

Our largest supplier does not dothis now , but w ill by 2015

Sample Size = 176

102 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Channel strategy of largest supplier:Ask our company to share inventory and/or PoS information

26%

46%

28%

12%

69%

19%13%

75%

13%

67%

33%

0%0%

83%

17%

0%

100%

0%

32%

53%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our largest supplier has no plansto do this

Our largest supplier does thistoday

Our largest supplier does not dothis now , but w ill by 2015

Sample Size = 175

103 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Channel strategy of largest supplier:Market directly to our customers

29%

58%

13%

25%

61%

14%

25%

75%

0%

33% 33% 33%

17%

50%

33%

0%

100%

0%

47%42%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our largest supplier has no plansto do this

Our largest supplier does thistoday

Our largest supplier does not dothis now , but w ill by 2015

Sample Size = 176

104 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Channel strategy of largest supplier:Performs some or all wholesaler-distributor functions themselves

58%

20% 22%

49%42%

8%

55%

39%

6%

100%

0% 0%

33%

67%

0%0%

50% 50%

63%

26%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our largest supplier has no plansto do this

Our largest supplier does thistoday

Our largest supplier does not dothis now , but w ill by 2015

Sample Size = 175

105 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

41%

50%

9%

47%

36%

17%

57%

25%

18%

67%

0%

33%

80%

20%

0%

50%

0%

50%44%

33%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Never Majority Majority Today Majority by 2015

Way our customers work:Require new services without additional margin or fee

Sample Size = 170

106 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Way our customers work:Ask for detailed data about their purchases from our company

67%

20%

13%

62%

17%21%

34%31%

34%

67%

0%

33%

60%

40%

0%

50% 50%

0%

50%

28%22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Never Majority Majority Today Majority by 2015

Sample Size = 170

107 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Way our customers work:Eliminate in-person sales calls from our company’s sales force

80%

5%

14%

84%

7% 9%

100%

0% 0%

80%

0%

20%

100%

0% 0%

89%

6% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Never Majority Majority Today Majority by 2015

Sample Size = 171

108 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Way our customers work:Reduce purchases from us because not a preferred supplier

84%

4%

13%

81%

5%

14%

86%

3%

10%

33%

0%

67%

100%

0% 0%

100%

0% 0%

78%

22%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Never Majority Majority Today Majority by 2015

Sample Size = 171

109 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Way our customers work:Conduct reverse auction to select suppliers for products

91%

2%7%

97%

0%3%

96%

0%4%

100%

0% 0%

100%

0% 0%

100%

0% 0%

89%

11%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Never Majority Majority Today Majority by 2015

Sample Size = 170

110 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Way our customers work:Centralize purchasing authority for buyers of our products

50%

30%

20%

33%

26%

41%39%43%

18%

33% 33% 33%

40%

60%

0%

50% 50%

0%

50%

33%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Never Majority Majority Today Majority by 2015

Sample Size = 170

111 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Way our customers work:Standardize brands purchased by different buyers

55%

21% 23%

52%

24% 24%

57%

18%

25%

33%

0%

67%

40% 40%

20%

50% 50%

0%

61%

33%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Never Majority Majority Today Majority by 2015

Sample Size = 170

112 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Advertising in a printed industry magazine

68%

24%

8%

75%

23%

2%

63%

29%

8%

67%

33%

0%

80%

20%

0%

100%

0% 0%

38%31% 31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 155

113 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Direct mail solicitation

44%

34%

22%

55%

38%

7%

63%

25%

13%

67%

0%

33%

80%

0%

20%

100%

0% 0%

38%

25%

38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 155

114 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Fax or other telemarketing

48%

36%

16%

64%

30%

5%

64%

28%

8%

67%

33%

0%

80%

20%

0%

100%

0% 0%

56%

31%

13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 156

115 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):E-mail marketing

26%

48%

26%32%

41%

27%

42%38%

21%

33%

67%

0%

20%

40% 40%

100%

0% 0%

44% 44%

13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 155

116 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):In-person sales call

4%

26%

70%

0%

18%

82%

0%

12%

88%

0% 0%

100%

20%

0%

80%

0% 0%

100%

0%

7%

93%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 156

117 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Physical presence at trade show

36%42%

22%

46%41%

13%

31%

42%

27%

67%

33%

0%

40% 40%

20%

100%

0% 0%

13%

50%

38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 157

118 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):In-person event or seminar

20%

50%

30%

23%

50%

27%

20%

40% 40%

0%

67%

33%

20%

60%

20%

0%

100%

0%

20%

40% 40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 155

119 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Advertising on an industry website

62%

28%

10%

54%

41%

5%

71%

21%

8%

33% 33% 33%

60%

20% 20%

100%

0% 0%

60%

27%

13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 154

120 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Our company’s web site

18%

50%

32%

13%

45% 43%

20%

52%

28%33% 33% 33%

0%

20%

80%

0%

100%

0%

13%

38%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 156

121 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Webinars

54%

30%

16%

54%

38%

9%

79%

13%8%

100%

0% 0%

60%

40%

0%

100%

0% 0%

67%

20%13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 154

122 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Search engine marketing

36%32% 32%

29%

48%

23%

58%

29%

13%

33%

67%

0%0%

80%

20%

100%

0% 0%

40%

33%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 154

123 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (Today):Participate in online networks

70%

24%

6%

66%

25%

9%

79%

8%13%

67%

33%

0%

100%

0% 0%

100%

0% 0%

69%

19%13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 155

124 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Advertising in a printed industry magazine

68%

23%

9%

89%

9%

2%

71%

25%

4%

100%

0% 0%

80%

20%

0%

100%

0% 0%

60%

20% 20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

125 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Direct mail solicitation

53%

32%

15%

70%

26%

4%

58%

38%

4%

100%

0% 0%

80%

20%

0%0%

100%

0%

60%

20% 20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

126 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Fax or other telemarketing

45%

36%

19%

70%

24%

6%

50% 50%

0%0%

100%

0%

80%

20%

0%

100%

0% 0%

80%

13%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

127 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):E-mail marketing

6%

44%50%

15%

43% 43%

21%

42%38%

0%

100%

0%

20%

40% 40%

0%

100%

0%

20%

60%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 150

128 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):In-person sales call

4%

38%

57%

2%

33%

65%

4%

29%

67%

0%

33%

67%

0%

40%

60%

0%

100%

0%0%

33%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

129 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Physical presence at trade show

45%38%

17%

48%

41%

11%

33%

46%

21%

67%

33%

0%

60%

40%

0%

100%

0% 0%

27%

53%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

130 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Our company’s web site

2%

46%52%

2%

33%

65%

17%

33%

50%

0% 0%

100%

0%

20%

80%

0%

100%

0%

13%

27%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 150

131 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):In-person event or seminar

29%

46%

25%30%

41%

30%

42%

33%

25%

0%

100%

0%

20%

80%

0%0%

100%

0%

29%

57%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

132 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Search engine marketing

19%

38%44%

15%

28%

57%

42%

21%

38%33%

0%

67%

0%

60%

40%

100%

0% 0%

50%

14%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

133 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Webinars

30%

43%

28%

20%

48%

31%

50%

29%

21%

33% 33% 33%

60%

40%

0%0%

100%

0%

53%

13%

33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

134 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Advertising on an industry website

43% 45%

13%

37%

44%

19%

58%

29%

13%

33%

67%

0%

60%

20% 20%

100%

0% 0%

40% 40%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 149

135 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Method to Generate New Sales (2015):Participate in online networks

26%

47%

28%32%

38%

30%

42%

29% 29%33%

67%

0%

40%

60%

0%0%

100%

0%

53%

27%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less important Moderately important More important

Sample Size = 148

136 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

ROLE OF IT:Actual

6%

22% 22%

36%

14%11%

25%

7%

52%

5%12%

24%28%

36%

0%

33%

0%

33% 33%

0%

20%

0%

40% 40%

0%

100%

0% 0% 0% 0%

20%

7% 7%

60%

7%

0%

20%

40%

60%

80%

100%

120%

No clearly def inedrole for IT w ithin

organization

Take a conservativeapproach; use only

proven, maturetechnologies

Stay current on IT;w ithout getting toofar ahead of our

competition

IT is an essentialinvestment area;

invest in leading, butproven,

technologies

Use IT as acompetitive

w eapon; competeat the cutting edge

of innovation

Col

umn

%

Sample Size = 155

57%

36%

50%

43%

64%

50%

5%

0%

14%52%

36%

36%

137 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

ROLE OF IT:Preferred

4% 4%

14%

40% 38%

0% 2%

18%

39% 41%

4%8%

28%

44%

16%

0%

33%

0%

33% 33%

0% 0% 0%

60%

40%

0% 0%

100%

0% 0%0%

20%

7%

40%33%

0%

20%

40%

60%

80%

100%

120%

No clearly def inedrole for IT

Take a conservativeapproach

Stay current on IT IT is an essentialinvestment area

Use IT as acompetitive w eapon

Col

umn

%

Sample Size = 155

80%

60%

72%

20%

40%

22%

41%

16%

38%39%

44%

40%

+

+

+-

+

+

+

+

+

138 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:ERP system

10%

21%

13%

29%27%

9%

24%

9%

29% 29%

25%

21%

17%

21%

17%

0%

33% 33% 33%

0%0%

20% 20% 20%

40%

15%

38%

8%

23%

15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Not familiar w ith thissof tw are application

No plans to use thissof tw are application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 148

139 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Warehouse Management System

2%

17%21%

34%26%

0%

31%

18% 22%29%

4%

21%

8%

38%29%

0%

33% 33% 33%

0%0% 0%

60%

0%

40%

0% 0%

100%

0% 0%0%

54%

15%23%

8%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 148

140 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Transportation Management System (TMS)

4%

49%

26%

6%15%

4%

56%

18%11% 11%

4%

25%33%

25%

13%

0%

67%

0%

33%

0%0%

20%

40%

0%

40%

0% 0% 0%

100%

0%0%

58%

25%

8% 8%

Not familiar w ith thissof tw are application

No plans to use thissof tw are application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our needs

now and in 2015

Col

umn

%

Sample Size = 147

141 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Customer Relationship Management (CRM)

8% 6%

40%

29%

17%

0% 4%

38% 38%

20%

4%

21%29%

42%

4%0% 0%

100%

0% 0%0% 0%

80%

20%

0%0% 0%

100%

0% 0%0%

23%31% 31%

15%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 149

142 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Price optimization

6%15%

40%

23%15%

7% 11%

52%

15% 15%

25%21%

33%

13%8%

33%

0%

33% 33%

0%0%

20% 20%

40%

20%

0% 0%

100%

0% 0%0%

58%

8%17% 17%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 146

143 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Sales Force Automation (SFA)

13%19%

48%

10% 10%4%

25% 27%33%

11%17%

33% 33%

13%4%

0% 0%

67%

0%

33%

0%

20%

0%

40% 40%

0% 0%

100%

0% 0%8%

23%

38%

15% 15%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 149

144 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Inventory Management

8% 8% 10%

38% 35%

2%

19% 19%

31% 30%

4%13%

17%

29%38%

0%

33%

0%

67%

0%

20%

0%

20% 20%

40%

0% 0%

100%

0% 0%

23% 23%

8%

23% 23%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 148

145 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Internet storefront for web-based ordering

4%10%

42%33%

10%2%

15%

36% 38%

9%8%13%

33%38%

8%0% 0%

67%

33%

0%0% 0% 0%

40%

60%

0% 0%

100%

0% 0%8%

23%31% 31%

8%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 149

146 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Vendor Managed Inventory (VMI)

9%

38%

21% 19%13%

4%

24%18%

33%

22%

8%

29%25%

21%17%

0%

67%

33%

0% 0%0%

60%

20% 20%

0%0% 0%

100%

0% 0%

17%

58%

8% 8% 8%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 147

147 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Inventory Optimization

23%17%

30%

19%11%

15% 15%

25% 25%20%

13%8%

33%

13%

33%33% 33% 33%

0% 0%

60%

0%

20% 20%

0%0% 0%

100%

0% 0%8%

33%

17%25%

17%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 147

148 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

9%

21% 21%30%

19%

7%

41%

24% 24%

4%8%

25% 25%33%

8%

67%

0%

33%

0% 0%0%

40% 40%

0%

20%

0% 0% 0%

100%

0%8%

33%

17%25%

17%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Software Usage:Product Catalog Management

Sample Size = 146

149 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

26% 28%19%

15% 13%16% 20%27% 25%

11%

21%13%

25%29%

13%

100%

0% 0% 0% 0%

20%

60%

20%

0% 0%0% 0%

100%

0% 0%8%

50%

17% 17%8%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Software Usage:Master Data Management

Sample Size = 146

150 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

4%8%

31% 31%25%

2%

13%

35%

24% 26%

0%8%

33%42%

17%

0% 0%

100%

0% 0%

20%

0%

40%

20% 20%

0% 0%

100%

0% 0%0%

38%

0%

23%

38%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Software Usage:Barcode scanning

Sample Size = 148

151 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:Activity-Based Costing (A-BC)

6%

28% 30%

17% 19%

5%

33% 33%

18%11%8%

33%

17%

38%

4%

33% 33% 33%

0% 0%0% 0%

80%

0%

20%

100%

0% 0% 0% 0%

15%

69%

0%

15%

0%0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 148

152 © Copyright IBM Corporation 2006

IBM Global Business Services

© 2011 IBM Corporation

Facing the Forces of Change Segmentation by Customer Type

Otherwholesalerdistributors

Non-profitsand

governmentinstitutions

Independentand Chain

Restaurants

HealthcareProviders

CommercialFacilities

Retail StoresIndustrialManufacturing

Facilities

Contractors

Software Usage:RFID event capture / Electronic Product Code Information Service

17%

40%

30%

6% 6%13%

40%33%

7% 7%13%

30%39%

13%4%

100%

0% 0% 0% 0%

40%

0%

20% 20% 20%

0% 0%

100%

0% 0%

15%

54%

0%8%

23%

0%

20%

40%

60%

80%

100%

120%

Not familiar w ith thissof tw are

application

No plans to use thissof tw are

application

Not currently using -w ill start using by

2015

Currently using, butw ill need upgrade/

change to meetneeds in 2015

Currently using andfully meets our

needs now and in2015

Col

umn

%

Sample Size = 147