Moving Forward from the JV … TSC

As many know, the challenges to streamlining data and operational efficiencies throughout the channel were brought to the forefront late this summer. Discussions regarding possible joint endeavors between IDEA and Trade Service Corp came to a halt. (A copy of the proposed JV can be read here.) While we don’t know if the “deal” was good or bad (that is up to the distributors and manufacturers that comprise IDEA as well as Trade Service Corp.), we do sense that the industry would benefit through broader data dissemination through a single source as well as integrating the data downstream (purely our opinion).

While an opportunity may have been lost, it appears that Trade Service Corp. is moving forward to offer expanded services to the electrical industry given two recent press releases.

• On December 14, Trade Service Corp. announced that it had formed a Distributor Advisory Group (DAG) to gain distributor input. The group is made up of 12 distributors (read here). Interestingly, 11 of the 12 are IDEA members, representing in excess of $11 billion in electrical sales. According to Tod Moore, VP Sales for TSC, “The electrical Distributor Advisory Group has already provided the impetus for Trade Service to develop a brand new format for its printed update bulletin, giving customers an even easier way to digest and assimilate the many changes occurring each day within the Trade Service database.”
• On January 14, Trade Service Corp. announced a relationship with Distribution Technology Group, (read here) a technology sales organization founded by electrical industry veteran Stacey Pandeloglou. This press release also mentioned a forthcoming TSC product called TSO (Trade Service Online) which is expected to be unveiled in July. According to Stacey, “… Trade Service has shared with me their plan to create a platform, TSO, that will become the “Yahoo” of the electrical industry and I am extremely excited to be a part of this new offering.”

So the questions become … Does TSC have plans to expand? Has it been reinvigorated? Will IDEA have more aggressive competition? Will the industry ever evolve to one data source? Are we destined to have channel inefficiencies due to data?

Your thoughts?