Global Supply Chain Laboratory hosts Optimizing Channel Compensation Consortium

Texas A&M University hosted the final meeting of the Optimizing Channel Compensation Consortium (OCC) Aug. 28.

OCC is led by faculty from the Texas A&M Global Supply Chain Laboratory in alliance with the National Association of Wholesale Distributors (NAW). This year’s consortium had 39 professionals in attendance representing 20 firms and nine lines of trade.

The consortium investigates how distributors and their suppliers collaborate to create value, to explain that value to channel partners, develop compensation methods beyond simple gross profit on products, and remain competitive while maintaining equity in the supply chain.

The benefits to consortium members include the opportunity to actively participate in groundbreaking research into one of the most crucial and timely challenges facing the industry. Each member of the consortium is able to direct the scope of the research so that the results are actionable and sustainable. Additionally, members of the consortium have an 18-month head start on competitors in understanding and implementing the new best practices developed in this consortium as well as a far deeper understanding of the practices from workshops conducted directly on their organizations with the research team. Finally, consortium members have the opportunity to send up to 10 people from their organizations to one of the two educational programs delivered at Texas A&M for no cost other than travel expenses during the 2013 sessions. The educational programs are scheduled following the conclusion of the research.

Aaron Elliott, vice president for sales and marketing for DW Distribution, said that covered topics would be incorporated into their vendor planning sessions for 2014. He also added that “the topics covered were extremely applicable to our business and will be used in our planning going forward.”

Sony Mendiola, vice president for sales and markting for Johnson Supply, added, “Texas A&M has a great perceptive from the Distributor side and it really showed the perspective from both sides and solidified the need for the research.”

On learning about the results of the consortium, Bill Day, regional vice president of Womack Machine Supply Co., said, “Overall, I thought the presentation was very well done and worth my time and travel to College Station.”

For 2014, the Global Supply Chain Laboratory will conduct two consortia: Optimizing Human Capital Consortium and Optimizing Value Added Services Consortium. For more information, visit

Texas A&M’s Global Supply Chain Laboratory (GSCL) is the nation’s premier distribution focused research lab. GSCL provides state-of-the-art distribution and supply-chain research solutions to the industry. GSCL is part of the Thomas and Joan Read Center for Distribution Research and Education in the Texas A&M Engineering Experiment Station.