Wesco – Wesco Finalizes Sale of Integrated Supply Business to Vallen Distribution, Inc.

EMR Analysis

More information on WESCO: See the full profile on EMR Executive Services

More information on John J. Engel (Chairman, President & Chief Executive Officer, WESCO): See the full profile on EMR Executive Services

More information on David S. Schulz (Executive Vice President & Chief Financial Officer, WESCO): See the full profile on EMR Executive Services

More information on Wesco Integrated Supply (WIS) by WESCO: https://www.wescois.com/ + Partner with the largest integrated supply services provider in the U.S.

With more than $1.4 billion of annual supply chain spend under management, Wesco Integrated Supply is the industry’s leading provider of integrated supply services.

Wesco can be your single source for millions of industrial and maintenance products and services, with relationships with over 40,000 suppliers and processes more than seven million transactions annually.

For over 50 years, Wesco Integrated Supply has been a pathfinder in developing systems and database capabilities that achieve better controls, transparency and efficiencies in the supply chain. Wesco operates six centralized procurement centers in North America and Europe. Using extensive market sourcing expertise, we leverage a business’s country and regional MRO spend.

Our storeroom and warehouse programs meet the highest performance standards. With field organization embedded at customer sites, we shape savings and process improvement by working hand in hand with our customers. Wesco embraces a culture of Six Sigma and Lean methodologies, driving positive change and innovation in our customers’ facilities.

More information on Vallen: https://www.vallen.com + Vallen is a leading provider of indirect industrial supplies – all those materials that are not part of the products our customers manufacture.

From earplugs to hand tools, to abrasives and cutting tools, we cover the vast majority of our customers’ maintenance, repair, operations and production-related needs. Vallen is also a leader in technical services with offerings that include safety equipment inspection, maintenance, certification and solution design.

Many of our customers look to us for integrated supply solutions and vendor managed inventory, with Vallen associates on-site, bringing local knowledge and expertise to the specific needs of individual facilities.

• From earplugs to hand tools, to abrasives and cutting tools, we cover the vast majority of our customers’ maintenance, repair, operations and production-related needs. Vallen is also a leader in technical services with offerings that include safety equipment inspection, maintenance, certification and solution design.
• Many of our customers look to us for integrated supply solutions and vendor managed inventory, with Vallen associates on-site, bringing local knowledge and expertise to the specific needs of individual facilities.

More information on Chuck Delph (President, Vallen North America, Vallen): https://www.vallen.com/w/aboutus + https://www.linkedin.com/in/chuck-delph-68b7a89b/ 

More information on Nautic Partners: https://nautic.com + As a middle market private equity firm, we focus on three specialties while supporting the long-term value creation of our portfolio companies. We focus our expertise in three sectors: Healthcare, Industrials, and Services. We believe that the experience and industry insights that we have developed and honed in these areas over three decades benefit all of our constituents.

• Our management partners value our experience as we work alongside them.
• Our employees are energized and motivated to continue to develop their own skills to contribute to the firm’s success.
• Our business relationships have the confidence to know that highly competent investment professionals manage the firm.

More information on Christopher A. Pierce (Managing Director, Nautic Partners): https://nautic.com/team-members/?team=all-team&member=christopher-pierce +  https://www.linkedin.com/in/chris-pierce-3b924521/ 

EMR Additional Notes:

• OEM (Original Equipment Manufacturer):
  • Company that produces parts and equipment that may be marketed by another manufacturer.
  • Usually tagged on hardware or software that’s less expensive than normal retail products.
  • An OEM refers to something made specifically for the original product, while the aftermarket refers to equipment made by another company that a consumer may use as a replacement.
  • Electrical OEM manufacturers makes equipment or components that are then utilized by its customer, another manufacturer or a reseller, usually under the final reseller’s brand name. OEMs come in many shapes and sizes, making complete devices or specific components.
• MRO (Maintenance, Repair and Operations):
  • It refers to all the activities needed to keep a company’s facilities and production processes running smoothly.
  • Supplies consumed in the production process that do not become part of the end product.
  • Maintenance professionals use MRO items to maintain company structures, equipment, and assets. Purchases that fall under MRO include maintenance tools and equipment, replacement parts for production equipment, consumables such as personal protective equipment (e.g., safety goggles, work gloves), cleaning products and office supplies.
• Integrated Supply:
  • Integrated supply chain management refers to an enterprise resource planning approach to supply chain management.
  • Large-scale business strategy that brings as many links of the chain as possible into a closer working relationship with each other. The goal is to improve response time, production time, and reduce costs and waste.
  • Often takes the form of integrated computer systems. For example, the supplier’s computer system may be set up to deliver real-time data to the buyer’s computer. This allows the buyer to know: The current status of all orders., which products are in the supplier’s inventory …
  • Integration, operations, purchasing and distribution are the four elements of the supply chain that work together to establish a path to competition that is both cost-effective and competitive.
  • Integrated supply is the end-to-end process of managing the MRO supply chain (spare parts) through consolidated sourcing practices, storeroom operations, inventory management, data governance, and continuous improvement. The objective is to leverage spend, reduce transactions, and cut inventory and associated costs while eliminating risk around critical spares.