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 [email protected](917) 224-9868
Guy BlissettWholesale Distribution [email protected](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