The valve industry has experienced significant disruptive events over the past dozen years, including the Deepwater Horizon oil spill incident, the oil crisis of , global warming concerns, the COVID pandemic, evolving human resource shortages, current supply chain and logistics issues and recently, the war in Ukraine. These events have created a volatile environment with valve makers&#; customer base resulting in a need to find new and diverse ways of addressing their needs, concerns and operations. One could say that the level of loyalty a customer has with its suppliers has decreased &#; thus increasing the likelihood of them reducing their supplier base and evaluating alternatives.
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To counter these developing trends, valve manufacturers and distributors need to find ways to increase their influence with important accounts in order to protect the share of their customers&#; valve and controls spend that they receive. Valve suppliers should also harness this opportunity to grow their business with these key accounts at a faster pace compared to standard market growth rates. We propose that valve makers and distributors consider the implementation of a strategic account management program as the primary way to address these issues and take advantage of the opportunities listed above.
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What is strategic account management? It is an enterprise-wide initiative to develop strategic relationships with a limited number of customers in order to achieve long-term, sustained, significant and measurable business value for both the strategic account and your company.
Why a strategic account management program? Because it delivers the following results:
In order for the program to be successful, it must meet the following criteria for success:
How do we start building the program? First, we need to select the accounts that are to be included in the program. We propose that the company start with the creation of a scorecard or selection matrix that encompasses the selection criteria to be used along with a selection scoring weight for each criterion. Representatives from different areas of the business within the organization score the candidates and a selection committee with representatives from different business functions (sales, operations, legal, finance, engineering, etc.) select the accounts to be included in the program. Selection criteria could include current sales volume, potential for growth and the account&#;s willingness to partner with the company as examples.
Example of account selection matrix. Credit: S&H Strategic Sales Consulting LLC
Once the accounts are selected, the company needs to assign the resources to be dedicated to the account. These would include strategic account managers, program managers if needed, site team leaders supporting local facilities, account-based marketers, manufacturing/operations, information technology, engineering/product management, customer service and finance resources, to name a few. The team would normally be virtual and led by the strategic account manager.
Now that the accounts have been selected and the account management team put in place, the growth plan can be created. The plan must start with an understating of the current situation with the account. We call this process the situational analysis. The situational analysis should include the following:
The situational analysis must uncover the customer&#;s mission, vision, financial health, current concerns and plans for growth/expansion. This analysis should reveal the key account&#;s organization including the key decision makers and influencers that impact valve and controls procurement decisions. The primary objective of this analysis is to match the opportunities with the products and services we may offer to enable the customer to successfully meet their goals.
By analyzing the competitive landscape surrounding the target account the company can discern how well-positioned it is with respect to their competitors by product group. We suggest the company create an analysis matrix in order to assess the competitive field in detail.
The company should also create a competitive matrix for each product and/or service group offered to the target account.
The analysis of the company&#;s position with the target account is the third and last step of the situational analysis. This process requires an objective assessment of the relationship with the strategic account including but not limited to the following:
However, the ultimate measure of a company&#;s position with an account is what we define as &#;share of wallet.&#; This metric is attained by calculating the ratio between the company&#;s annual revenue for each product or service group supplied and the customer&#;s total annual spend for each product and/or service group.
Santucci and Hughes leverage their combined five decades of experience in industrial sales in this recently published book. Credit: S&H Strategic Sales Consulting LLC
Once the situational analysis is complete, the company can now easily identify what defensive and offensive initiatives need to be put in place to mitigate any loss in business and, more importantly, identify the opportunities that can provide better than average revenue and profitability growth.
The company must also put in place a relationship-management plan. The relationship-management plan requires that all the key procurement decision makers, influencers and recommenders are identified, evaluated in terms of their function in the procurement process and rated regarding their attitude towards the company (i.e., advocate, supporter, neutral, blocker).
As the relationship becomes more intimate, the company may consider assigning an executive sponsor to the strategic account. There are several reasons to appoint a high-level company executive to a strategic account. The strategic account must feel that your company is becoming an integral part of its operation and thus, have a desire to deal in a more intimate manner with your firm. It is an opportunity to move to a planning-partner or trusted-adviser status. It opens the door for earlier knowledge of the strategic account&#;s strategies, initiatives, concerns and plans. It provides an enhanced overall customer experience to the strategic account. It allows for accelerated product portfolio expansion with the customer. In short, it provides an opportunity to carve out a larger share of wallet through collaboration.
All plans need to be monitored and reviewed periodically to ensure that the objectives are being met. Furthermore, as events occur, the account plan may need to be modified and/or updated. The reviews must be performed internally with the account team and company leadership and externally with the strategic account. External performance reviews are also opportunities to drive a positive evolution of the relationship. The following are some of the areas to consider during the performance review.
In conclusion, a well-run strategic account program can be the vehicle for valve makers and distributors to navigate through these disruptive times, find ways to keep abreast of customers&#; most important needs, strategies, direction and, in short, provide significant benefits to both your company and your strategic accounts.
Richard Santucci, co-founder of S&H Strategic Sales Consulting LLC, was formerly a global key account director for units at Emerson Automation Solutions and Pentair PLC. He also was vice president of Latin America for a unit of Tyco Flow Control, where he doubled the business in three years while leading general management, sales, strategic planning and marketing functions. He also held numerous roles at Teledyne Analytical Instruments. He holds a bachelor of science degree in Chemistry from California State University, Los Angeles.
David Hughes, co-founder of S&H Strategic Sales Consulting LLC, was formerly the director of Global Strategic Accounts for Emerson Electric&#;s Final Control Business Segment. His involvement in strategic account management began when he was asked to initiate and develop the strategic account program, along with Richard Santucci, for Tyco Valves and Control&#;s Oil and Gas business in . Prior to that, Hughes led Tyco Valves and Controls&#; U.S. sales and distribution business &#; a business he grew 60% in three years. He also managed sales for Valquip Corporation. He served on the VMA board as chairman from-. He graduated from the University of Michigan with a bachelor&#;s degree in Business Administration.
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VMA&#;s annual Market Outlook Workshop reflects on positive growth and looks ahead to a stabilizing , although supply chain and labor issues loom large.
As industrial companies confront the challenges posed by global supply chain constraints, extra attention should be paid to maintenance as a strategy for minimizing the need for new equipment and components.
The past few years have proven that digital transformation (DT) is more than just a trend. It is becoming one of the frontrunners for ensuring business continuity through modernizing times. However, despite being an essential component for adaptability in a competitive industry, not all companies would consider their DT implementation a success.
Powell Valves is a leading manufacturer of industrial valves and has a distribution network that spans the globe. They offer a wide range of valves for various applications, including gate valves, globe valves, check valves, ball valves, and butterfly valves, among others.
Powell industrial valvesPowell Valves is a leading manufacturer of valve industry with the highest quality standards, serving a range of industries including oil and gas, power generation, chemical processing, and water treatment. Here is a list of Powell products:
To find Powell Valves distributors near you, you can visit their website and use their distributor locator tool. This tool allows you to search for authorized distributors by location, product type, and industry. You can also contact Powell Valves directly to inquire about their distribution network and find a distributor in your area.
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It&#;s worth noting that while Powell Valves has a global distribution network, their distribution coverage may vary by region and product. It&#;s always a good idea to research and compare multiple valve suppliers to find the one that best meets your needs.
As a professional industrial valve manufacturer, we deeply know the needs, challenges, and pain points of industrial valve distributors. While these may vary depending on the specific business, if you are interested in becoming an industrial valve distributor, here are some common ones that we suggest for valve distributors.
industrial valvesIndustrial valve distributors need high-quality and reliable valves to ensure their customers can rely on them to operate in a safe and efficient manner. They need valves that can withstand harsh environments, high pressures, and temperatures without failure.
industrial valve manufacturing procedureCost is an important factor for industrial valve distributors. They need to balance the cost of the valves they purchase with the cost of maintenance, repairs, and replacements over the valve&#;s lifetime. They also need to be competitive in their pricing to remain profitable.
Downtime can be a significant challenge for industrial valve distributors. They need valves that can be quickly installed, replaced, and maintained with minimal downtime. Downtime can result in significant financial losses for their customers and harm their reputation.
Industrial valve distributors must comply with safety regulations and standards to ensure that their valves are safe for daily operations. They need valves that meet or exceed safety standards to avoid accidents and liabilities.
certificates for valvesIndustrial valve distributors may need technical support to help them with installation, maintenance, and troubleshooting issues. They need a supplier who can provide timely and knowledgeable technical support to resolve any issues that arise.
Control Valve SizingIf you&#;re interested in becoming an industrial valve distributor, it&#;s important to partner with a supplier who understands your business and can provide solutions to help you overcome your challenges.
THINKTANK is a full service valve company in China, we have extensive experience working with industrial valve distributors and we can provide the support and solutions you need to succeed in this industry.
We understand that as an industrial valve distributor, you need the highest quality standards and reliable valves that can withstand harsh environments, high pressures, and temperatures without failure. That&#;s why we offer a wide range of valves that meet or exceed safety standards, including ball valves, gate valves, butterfly valves, and more.
We also know that cost is an important factor for industrial valve distributors, and that&#;s why we offer cost-effective solutions that balance the cost of valves with the cost of maintenance, repairs, and replacements over their lifetime. Our valves are designed for easy installation, replacement, and maintenance to minimize downtime and reduce costs.
When replacing other brands in the field, we often need to make custom modifications to existing valve sizes and dimensions, THINKTANK offers extensive scope for custom modifications, not only making a good profit for the valve distributor but also making customer satisfaction.
thinktank/stone valve manufacturerAt THINKTANK, we also understand the importance of technical support. We have a team of knowledgeable and experienced technicians who can provide you with timely support for installation, maintenance, and troubleshooting issues. Our valve expertise works closely with our industrial valve distributor partners to ensure that they have the support and solutions they need to succeed. We strive to continually improve all of the product line manufactured to satisfy our valve distributors, agents, engineering companies, and end-users needs.
Here is a list of some of the leading industrial valve manufacturers in the world:
Emerson is a global manufacturing and technology company that provides a wide range of products, including industrial valves for various applications. Their valve brands include Fisher, Crosby, Keystone, and Vanessa.
Flowserve is a leading provider of flow control products and services, including industrial valves, pumps, and seals. Their valve brands include Durco, Edward, Limitorque, and Worcester.
Cameron is a provider of flow equipment products, systems, and services for the oil and gas industry, including industrial valves. Their valve brands include WKM, Demco, and Orbit.
Velan is a Canadian manufacturer of industrial valves for various applications, including power generation, oil and gas, and petrochemicals. They offer a wide range of valve types, including gate, globe, check, and ball valves.
KITZ is a Japanese manufacturer of industrial valves, specializing in the production of ball valves, gate valves, globe valves, and check valves. They serve a range of industries, including oil and gas, chemical, and power generation.
Crane Co. is a diversified manufacturer of engineered industrial products, including industrial valves, pumps, and fittings. Their valve brands include Crane, Pacific, Jenkins, and Duo-Chek.
IMI is a global engineering company that provides a range of flow control products and services, including industrial valves. Their valve brands include Bifold, IMI CCI, IMI Herion, and IMI Norgren.
This list is by no means exhaustive, and there are many other reputable industrial valve manufacturers in the world. When choosing an industrial valve manufacturer, it&#;s important to consider factors such as quality, reliability, cost, and technical support.
If you&#;re interested in becoming an industrial valve distributor, partner with THINKTANK to gain access to high-quality and reliable valves, cost-effective solutions, and expert technical support.
We understand your business and can provide the solutions you need to overcome your challenges and succeed in this industry. Contact us today to learn more about our products and services.
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