"Building the chain": creating a culture of trust in the supply channel.(ASA NEWS)(Panel Discussion)

That's the name of a panel discussion that promises to be one of the highlights of the upcoming "Network '05" program. "Network '05" is the name of the event that comprises the Annual Conventions of both ASA and the Plumbing, Heating, Cooling Contractors--National Association (PHCC).

The service and repair contractor says, "I need to carry a large inventory because I don't know what my supplier has in stock, and availability of replacement parts is the key to my success."

The new construction contractor says, "One of the quickest ways to add money to fine project's bottom line is to get three prices and then get a good buy-out."

The wholesaler counters with, "Contractors never plan anything and then are surprised and irritated when products are back-ordered; they don't understand the basics of materials management and the supply process."

The manufacturer says, "Wholesalers are only interested in price. They're willing to carry any product line as long as it's cheap, and they refuse to help sell value-added products and services. Plus, contractors and wholesalers aren't interested enough in using technology to streamline the process."

Sound familiar? Our industry's culture with respect to materials management and the supply of materials--from the manufacturer's production floor to the local supply house to final installation by the contractor--is seriously flawed, and is killing the profitability of all three entities. The amount of profit lost due to order entry errors, shipping timeliness and accuracy, damage, hack-orders and the length of time it ...