CEO Owner Update June 12, 2018
Agenda Update on Actions since April Strategic Vision Annual Meeting Questions
Develop World Class Digital Platform Optimize the “POWER OF ONE” Strategic Vision Value Creation Develop World Class Digital Platform Profitability Driven Market Share Growth Owner Loyalty Optimize the “POWER OF ONE”
Customer Service that is easy to do business with – good processes Value Creation Programs and opportunities that are broad enough to serve our unique owners, but focused enough to generate high returns for our owners and supply partners Customer Service that is easy to do business with – good processes Training opportunities for our owners Accessible to Owners Personal Relationships
Develop World Class Digital Platform E-platform to support overall strategy Online platform to support fulfillment processes and readily connect value-added information to owners Rebates and Rebate scenario tools available on demand
Optimize the “POWER OF ONE” Bi-annual business meetings with each owner to align purchasing decisions to maximize owner support of supply partners and therefore rebates based on location, size and setup Nimble cooperative decision making based on ownership profitability Maximize owner throughput of T&O products with rebate Horizontal integration into related sources of revenue such as pest Logistical optimization of inbound freight Help with owner slower moving inventory based on cooperative needs
Lean staff for cooperative with expense control Profitability Driven Alignment of Vendor relationships to owner needs, with sufficient limitation to ensure strength of cooperative Leverage size for flow through opportunities that create lowest net price in the market Lean staff for cooperative with expense control KPI/data driven culture with clear, live visibility into the coop performance throughout the year
Organic growth – maximize throughput of program rich purchases Market Share Growth Organic growth – maximize throughput of program rich purchases Alignment of owners toward common cooperative goals, and alignment of cooperative goals to owner business needs. Acquisitions – potential members that add value to the cooperative by alignment to owner goals in market Collaborative Goal setting for owners that are agreed Primera marketing strategy
Product strategy aligned to customer needs and owner value Owner Loyalty Product strategy aligned to customer needs and owner value Social media and Primera marketing Proprietary products and brands Excellent relationship between the owner and Primera by regular contact designed to drive business goals Create a listening culture Value added services - training program, Supplier partnerships, rebate calculators, etc.
Strategy Summary Points Primera as the leading channel partner for our chosen supply partners Continue to build “Brand” strategy. Off Brand also plays important role. Become the leading supply chain for Suppliers to invest marketing funds and rebates. Top Market position in all key US regions Implement a robust digital platform to pursue changing demographics of owners Maximize Spend of every owner within the programs to reduce spillage – optimize size, scale, and procurement power Develop a strong, scalable, efficient foundation to support future growth. Systems, principles, procedures, reliability. Continue to evolve into a leader in market by consolidating spend of ownership and pursuing meaningful and aligned companies to expand where our network requires Attract and retain top companies with desirable business portfolios Drive differentiation through branding, products, and value added tools to increase owner loyalty and improve programs with suppliers