The Heating, Air-conditioning and Refrigeration Distributors International’s foundation sponsored three distributors and manufacturers in a channel compensation program.
The Optimizing Channel Compensation Consortium was conducted by Texas A&M University in College Station, Texas, on behalf of the Council for Research on Distributor Best Practices.
The 18-month study started Feb. 24, and is designed to identify how to demonstrate value and create fair compensation for all partners working within wholesale distribution. Barry Lawrence, Ph.D., Sentil Gunasekaran, and Pradip Krishnadevarajan of Texas A&M are set to work individually with all participating members over the next several months as part of the study.
This marks the third consecutive consortium that the foundation has sponsored. HARDI member participation has historically been just distributors, but foundation trustees convinced Texas A&M to include supplier participation in the research as well. HARDI wholesale distributor members participating in the study include Crescent Parts & Equipment Co. Inc. in Manchester, Miss.; G.W. Berkheimer Co. Inc. in Portage, Ind.; Johnson Supply of Houston; Nordyne of O’Fallon, Mo.; Allied Air Enterprises from West Columbia, S.C.; and Superior Radiant Products of Stoney Creek, Ontario.
“This consortium will greatly serve the supply-chain because all parties must identify how they are uniquely adding value to their customers. Are the services provided still valued and relevant for compensation? If not, stop doing them and let’s identify the ones that will better assist our customers. These are all great questions that need to be addressed throughout the chain,” said Sheila Smiggen, Allied Air Enterprises’ business strategy manager. “Partnering, transparency and mutually beneficial goals will insure a win-win for both distributors and OEMs (original equipment manufacturers). As an OEM, it is great to have a seat at the table for open dialog to support one another’s long-term profit growth and identify the best means for compensation.”