1. 2020 Vision The Future of High-Profit Wholesale / Distribution Companies

2. The Coming Future of Distribution By 2020, the face of wholesale distribution will have changed the stratification of players will have become extreme: – top-profit producers: 10%+ NBT – margin erosion will take 3%–4% off NBT – today's tier-one companies destined for bankruptcy or acquisition

3. What Will Be Different top-tier companies will run with a different operating philosophy they will use big data to set priorities and to allocate effort and resources they will be much more integrated with their vendors and customers they will have replaced much of their current business model

4. accountability measures and incentives will be common and aligned throughout the company the need for continuous improvement will drive focus on deltas (gains) the C-Suite will have: CEO, CFO, CSO, CPO, CIO every level of the company will understand and master triage (prioritization) will have a clearly articulated business model What Will be Different (cont'd)

5. Mission of 2020 Vision Develop an organization to identify companies lead by the most forward-thinking people, and provide guidance, education and certification of those companies, and the consultancies that guide them. Celebrate the 2020 companies and share the strategies and tactics that make them successful.

6. 2020 Vision Develop a vision of the success drivers of a top-tier wholesale distribution company in the year 2020. Build an organization to help communicate the success elements, and to certify companies that have them in place. Certify the consultancies and advisors qualified to help companies implement the elements.

7. 2020 Vision (cont'd) Benchmark and publicize the performance levels and standards of the top-tier companies. Celebrate and publicize the success of the 2020 Vision companies. Help the financial community understand, recognize and prioritize 2020 Vision companies.

8. 2020 Benefits industry-leading profits / cash flow status / recognition for company leaders higher stock value recognition by investors recognition by banks

9. 2020 Companies Will... be executing on clearly-defined and articulated business models have defined business strategies (not everything to everyone) use big data to define strategy and allocate effort / resources have a leadership structure that elevates profit management and improvement (CPO)

10. 2020 Companies Will... (cont'd) have widespread adoption of Quantum Profit Management have LIPA for granular profit measurement have strategic pricing / margins have company-wide profit-based incentives have customer / market demographics have data-driven marketing plans

11. 2020 Companies Will... (cont'd) be digitally integrated with their dominant suppliers and large-profit customers be executing on a strategy to communicate digitally be marketing online train their customers to make them more profitable have a communication program for millennials

12. 2020 Companies Will... (cont'd) have an education program to develop personnel be top-tier in benchmarks be executing a plan to increase the company's valuation have a comprehensive feedback mechanism to prioritize drive continuous improvement

13. 2020 Metrics NBT above 10% (higher in certain sectors) NBC/FTE 2x or more of industry average sales comp below 50% NBC others relative to market or other 2020 companies

14. 20/20 Certification conceptual framework objective standards certification authority qualified consultants / instructors certify 2020 companies

15. 20/20 Concept Communication industry thought / opinion leaders APIC speakers top-performing companies high-visibility companies media educational institutions financial institutions

16. 2020 Advisory Board Tom Gale Steve Epner Brent Grover Al Bates Dirk Beveridge Barry Lawrence Jonathan Byrnes Lindsay Konzak Bruce Merrifield Guy Blissett

17. Timeline concept meeting develop initial advisory team gather, narrow and refine base elements of 20/20 company document measurable objective standards develop "how to" plan for executing and achieving each element

18. Timeline (cont'd) develop branding / publicize concept certify partners announce / publicize companies certified as 2020 companies announce awards for companies that meet standards

19. Notes for the top performers, not the lowest common denominator (or everyone) could provide benchmarks

21. 2020 Vision