RS Group: Industrial Procurement & Supplier Development
Former Global Category Manager, Electrocomponents
inpractise.com/articles/electrocomponents-industrial-procurement-and-supplier-development
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
RS Group plc
Why is this company 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.
RS Group: Industrial Procurement & Supplier Development(April 13, 2022)
Emma Briggs
Former Global Category Manager, Electrocomponents
Interview Transcript
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