RS GroupRS1

Why is RS Group interesting?

Founded in 1937, Electrocomponents (ECM) is a UK-listed industrial and electronics distributor that provides MRO components, automation and control, and technical electronics products to businesses globally. The company is a high-service distributor that aims to provide value-added service beyond simply selling components that an Arrow Electronics would focus on.

Over the last 10 years, the company has faced gross margin pressure and lower conversion of gross to operating profit that has dampened FCF growth. Lindsley Ruth, ECM's CEO, joined in 2015 and has reorganised the business to focus on value-add services to drive organic growth in addition to multiple acquisitions. ECM has compounded FCF per share at over 10% for 20 years and still has opportunity to expand globally.

ECM is part of our global B2B distributor coverage to understand what drives a sustainable competitive advantage in this business.

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RS Group: Industrial Procurement & Supplier Development

RS1RS Group

Executive Bio

Emma Briggs

Former Global Category Manager, Electrocomponents

Why is this interview interesting?

How Lindsley changed the business after taking over
The differentiation ECM could offer a large client like Black and Decker
How pricing works with large accounts
Differences sourcing industrial MRO vs electronic products
The biggest challenges meeting availability demands
Differences in gross margin between private label and 3P industrial products

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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RS GroupRS1

Why is RS Group interesting?

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