TED Magazine - February 2016
SPECIAL REPORT
SPAs: The Progress and the Problems SPECIAL PRICING AUTHORIZATIONS (SPAS) REDUCE
distributor book price to better fit overall market changes or meet the competitive cost requirements of individual transactions. They protect a distributor’s bottom line. They also solidify partnerships, simplify procurement, and stabilize pricing so distributors remain competitive.
So why are they such a headache?
70
the ELECTRICAL DISTRIBUTOR • Feb. 16
By D. Douglas Graham
www.tEDmag.com
The SPA process is actually many processes, collectively entailing a paperwork nightmare. Years have been devoted to standardizing SPA and streamlining all of its elements with technology. And while there has been progress, hurdles remain. SPAs allow manufacturers and distributors to price competitively in sales transactions and remain a
www.tEDmag.com
viable customer resource as changes occur in the marketplace. It’s a good idea and, in the electrical business, a hot topic of debate since the 1980s. SPA interest increased with the advance of the Internet and the need for electrical distributors to stay profitable in an industry gone global and more competitive. Currently the quest is on for a standardization of the SPA
format and terminology that is applicable to the entire electrical industry. How also do we automate SPA transmissions? We have EDI, but is EDI enough? Where do we go from there? Finally, what can be done to reduce or prevent the common discrepancies associated with SPA with the goal of enhancing the efficiency and accuracy of all of its processes?
Feb. 16 • the ELECTRICAL DISTRIBUTOR
71
SPAs: The Progress and the Problems SPECIAL PRICING AUTHORIZATIONS (SPAS) REDUCE
distributor book price to better fit overall market changes or meet the competitive cost requirements of individual transactions. They protect a distributor’s bottom line. They also solidify partnerships, simplify procurement, and stabilize pricing so distributors remain competitive.
So why are they such a headache?
70
the ELECTRICAL DISTRIBUTOR • Feb. 16
By D. Douglas Graham
www.tEDmag.com
The SPA process is actually many processes, collectively entailing a paperwork nightmare. Years have been devoted to standardizing SPA and streamlining all of its elements with technology. And while there has been progress, hurdles remain. SPAs allow manufacturers and distributors to price competitively in sales transactions and remain a
www.tEDmag.com
viable customer resource as changes occur in the marketplace. It’s a good idea and, in the electrical business, a hot topic of debate since the 1980s. SPA interest increased with the advance of the Internet and the need for electrical distributors to stay profitable in an industry gone global and more competitive. Currently the quest is on for a standardization of the SPA
format and terminology that is applicable to the entire electrical industry. How also do we automate SPA transmissions? We have EDI, but is EDI enough? Where do we go from there? Finally, what can be done to reduce or prevent the common discrepancies associated with SPA with the goal of enhancing the efficiency and accuracy of all of its processes?
Feb. 16 • the ELECTRICAL DISTRIBUTOR
71
