Purchaser Insights
Reference Deck
June 2015
Methodology
Sample Frame
Screener
Completes
719 Completes
B2B Panel
43% Completion Rate
UK, France,
Germany and Italy
Purchasers
Screener Criteria
1. Industry Screen
2. Past Participation
3. Age 21-70
4. Supply purchaser

Online research was conducted with TNS between May 11May 22, 2015

Trusted B2B panels were used (GMI, ResearchNow and
Empanel)

2
5. Involved/influence in purchasing
supplies
UPS was not identified for this research
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Spend
Low
France
Germany
Italy
UK
Less than
(n=45)
Less than
(n=46)
Less than
(n=26)
Less than
(n=73)
Medium
€ 50,000
€ 50,000
€ 50,000
£ 35,000
€ 50,000 € 250,000 (n=90)
€ 50,000 € 250,000 (n=89)
€ 50,000 € 250,000 (n=55)
£ 35,000 - £ 170,000
(n=69)
High
More than
(n=66)
More than
(n=65)
More than
(n=37)
More than
(n=58)
Q6. What is your company’s approximate annual spend for industrial supplies?
3
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
€ 250,000
€ 250,000
€ 250,000
£ 170,000
Researching and Selecting Distributors
4
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Resources for Researching a New Distributor
Base: Total Respondents
n=719
Used
Preferred
Distributor website
51%
Trade shows
44%
Company sales rep
43%
"Word of mouth" or personal references
43%
User review and recommendations
44%
33%
39%
37%
Distributor print/ hard copy catalogue
34%
Reviews from independent trade publications
33%
Internet (blogs, social media, forums, etc.)
33%
Emails
26%
Technical articles or whitepapers from the product's
manufacturer
25%
Web product videos
46%
22%
35%
29%
32%
30%
21%
25%
21%
Q10. Select the top 5 sources you use most frequently to research a new distributor under ”Top 5 used”. Then indicate the sources(s) which you would
prefer to use to research a new distributor. Your most preferred may be different from what you currently use.
5
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Factors When Selecting a Distributor
Base: Total Respondents
n=719
Most Important (1st & 1/2/3)
Top Factors
Quality of products
61%
49%
Best value
46%
Best prices
Customer service
42%
Speed of delivery
39%
Wide selection of products
33%
30%
17%
13%
38%
34%
5% 25%
4% 24%
3%19%
Technical support is available to answer questions
31%
5% 18%
Reputation
30%
6% 16%
Relationship with sales rep
20%
3% 13%
Company approval (vendors must be approved by my company)
20%
3%12%
18%
Returns policy
2%9%
Adequate geographical coverage
16%
3% 9%
User-friendly website
16%
3% 8%
Access to unique items
15%
2%8%
Uses my preferred shipping carrier
9%
52%
2%6%
Q11. Select the top 5 factor(s) you rely on most frequently when deciding which distributors to purchase
from under ”Top 5 factor(s)”. Then indicate the factor(s) which are first, second, and third most important.
6
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Reasons Look for New Products
Base: Total Respondents
n=719
25%
15%
I like to stay on the cutting
edge of available products
I heard/ read about a new
product and thought it may
be useful for my business
Customer requirements
21%
Internal needs
38%
Other
1%
Q8. What is the MOST common reason you look for new products for your business?
7
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Resources for Researching New Products
Base: Total Respondents
n=719
Used
Preferred
Distributor website
56%
Trade shows
45%
Company sales rep
44%
Distributor print/ hard copy catalogue
43%
50%
41%
36%
34%
"Word of mouth" or personal references
39%
35%
Reviews from independent trade publications
38%
35%
Internet (blogs, social media, forums, etc.)
36%
User review and recommendations
32%
Technical articles or whitepapers from the product's
manufacturer
32%
Emails
Web product videos
27%
23%
29%
32%
29%
24%
22%
Q9. Select the top 5 method(s) you use most frequently to research a new product under ”Top 5 used”. Then indicate the method(s) which you would
prefer to use to research a new product. Your most preferred may be different from what you currently use.
8
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Reasons Research Via Print/Hard Copy Catalogs
Base: Those researching via print/hard copy catalog
n=307
48%
49%
53%
35%
I like the convenience of
catalog(s)
27%
24%
29%
38%
28%
My suppliers' catalog(s)
clearly show pricing
24%
24%
36%
33%
43%
34%
Habit, I am used to
researching products this
way.
23%
12%
34%
Easier to identify/ confirm
the products I need
13%
8%
6%
Easier to find products than any My suppliers' catalog(s) have the My suppliers' catalog(s) clearly
other way
most updated product
show the delivery date
information
Total
37%
31-50 C (n=173)
30%
33%
The product images and
visual detail are more
accurate than any other
method
6%
3%
I don't have easy access to
online
51-70 D (n=105)
Q37. Why do you research new products via print/hard copy catalogs?
9
C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
26%
20%
20%
21%
Easier to get answers to
product or order-related
questions
2%
1%
4%
Other (Please Specify):
Current Distributor Used, Reasons, Performance,
Challenges
10
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Distributor Size Used Most
Base: Total respondents and by Annual Industrial Supply Spend
27%
E
48%
48%
EF
64%
54%G
47%
33%
FG
8%
Total
(A)
(n=719)
Mid-size distributors (typically
have regional coverage)
G
45%
Large distributors (typically
have national and/ or
international coverage)
18%
Low
(E)
(n=190)
5%
3%
Medium
(F)
(n=303)
High
(G)
(n=226)
Smaller distributors (typically a
single location or niche
services)
Q13. From which type of distributor do you MOST prefer to purchase industrial supplies?
11
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Distributor Size Used Most
Base: Total respondents and by Age
48%
D
59%
D
36%
52%
Large distributors (typically
have national and/ or
international coverage)
50%
45%
38%
43%
BC
14%
8%
3%
5%
Total
(A)
(n=719)
21-30
(B)
(n=74)
31-50
(C)
(n=411)
Mid-size distributors (typically
have regional coverage)
Smaller distributors (typically a
single location or niche
services)
51-70
(D)
(n=234)
Q13. From which type of distributor do you MOST prefer to purchase industrial supplies?
12
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Reasons for Using Distributor
Base: Preferred Distributor
Small
(H)
(n=56)
Medium
(I)
(n=321)
64%
IJ
55%
Best prices
Personal service
Level of customer service provided
29%
Level of technical support provided
29%
Wide selection of products
29%
27%
20%
18%
Uses my preferred shipping carrier
Shipping mode options
16%
13%
7%
41%
35%
HI
51%
41%
Payment options
Shipping price options
23%
HJ
43%
21%
Access to unique items
48%
37%
27%
21%
22%
J
36%
User-friendly website
Returns policy
61%
50%
J
36%
Nearby location
60%
J
35%
54%
Speed of delivery
Large
(J)
(n=342)
22%
15%
18%
12%
15%
21%
I
29%
22%
I
20%
23%
13%
H
18%
Q14. Select the top 5 factor(s) that are most important to you when purchasing industrial supplies from [SHOW RESPONSE SELECTED IN Q13] under ”Top 5
factor(s)”. Then indicate the factor(s) which are first, second, and third most important.
13
H/I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Most Important Reasons for Using Distributor
Base: Preferred Distributor
Small
(H)
(n=56)
Best prices
Personal service
36%
IJ
IJ
14% 43%
52%
Medium
(I)
(n=321)
31%
J
J
5% 19%
Large
(J)
(n=342)
26%
55%
2% 12%
14% 43%
J
7% 27%
10% 35%
J
6% 21%
7% 15%
Level of customer service provided
4%20%
6% 23%
6% 27%
Payment options
4%20%
Speed of delivery
Nearby location
11% 33%
5%18%
3% 13%
H
11% 31%
Level of technical support provided
5% 16%
Access to unique items
5%14%
2%
10%
8% 25%
I
5%15%
2% 11%
4% 14%
H
H
14% 38%
User-friendly website
Wide selection of products
2% 9%
3%14%
H
H
13% 31%
Shipping price options
0% 9%
2%11%
4% 10%
5% 9%
2%
7%
3%8%
Shipping mode options
2% 7%
2%8%
3%10%
Returns policy
0% 7%
4%10%
2%14%
Uses my preferred shipping carrier
52%
Most Important / Net of Most Important/2nd/3rd
Q14. Select the top 5 factor(s) that are most important to you when purchasing industrial supplies from [SHOW RESPONSE SELECTED IN Q13] under ”Top 5
factor(s)”. Then indicate the factor(s) which are first, second, and third most important.
14
H/I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Distributor Performance
Base: Total Respondents
n=719
Product quality 1%
5%
49%
Product availability 1%8%
60%
Delivery when products are needed 1%9%
Payment options 1% 12%
23%
59%
28%
55%
Contract/ negotiated pricing 2% 15%
Value-added services, such as repairs, training, or technical support 3%
Having a nearby physical location where you can purchase or pick up 5%
your order
24%
64%
Printed/ hard copy catalog 3% 14%
Shipping costs 2%
30%
62%
Product price 1% 13%
Return policies and procedures 2%
35%
57%
The supplier's website overall 1% 12%
Having a sales representative 3%
32%
55%
Product catalog/ product information on supplier website 1% 12%
Ability to make purchases on the supplier's website 4%
46%
28%
59%
16%
16%
25%
52%
29%
50%
31%
18%
57%
24%
21%
57%
20%
19%
59%
19%
Not at all well
26%
43%
Not very well
26%
Somewhat well
Q15. How well do your current distributors perform on...?
15
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Very well
Distributor Performance
Base: Preferred Distributor
Small
(H)
(n=56)
Product quality
Delivery when products are needed
Medium
(I)
(n=321)
46%
48%
46% I
45%
95%
91%
44%
32%
Large
(J)
(n=342)
50%
94%
60% H
91%
The supplier's website overall
21%
70%
91%
18%
66%J
Product price
25%
64%
89%
22%
65%
Product availability
Product catalog/ product information on
supplier website
Payment options
Having a sales representative
Contract/ negotiated pricing
38%
25%
36%
32%
25%
50%
61%
46%
48%
55%
61%
Shipping costs 16%
Return policies and procedures 27%
50%
Ability to make purchases on the supplier's
website
27%
48%
Having a nearby physical location where you
38% I
36%
can purchase or pick up your order
Printed/ hard copy catalog
29%
43%
Value-added services, such as repairs,
16%
55%
training, or technical support
88%
29%
84%
88%
63%
92%
25%
62% J
87%
24%
63% H
87%
80%
27%
54%
80%
24%
60%
86%
82%
77%
19%
77%
21%
75%
26%
73%
24%
71%
71%
28%
17%
81%
84%
56%
75%
58%
79%
53%
44%
79%
68%
54%
61%
78%
36%
31% I
23%
33%
35%I
30%
31%
25%
95%
53%
89%
58%
89%
62%
85%
58%
92%
52%
87%
57%
86%
50%
82%
58%
83%
58%
80%
25%
57%
83%
35% I
25%
28%
21%
H/I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
47%
23%
Very Well
Q15. How well do your current distributors perform on...?
16
82%
47%
47%
44%
82%
69%
59% H
58%
87% H
79%
Somewhat Well
Challenges with Distributors
Base: Preferred Distributor
Small
(H)
(n=56)
27%
27%
20%
Shipping speed options
20%
35% J
23%
30%
24%
29%
17%
14%
25%
25%
26%
20%
17%
14%
13%
27%
21%
30%
16%
7%
40% I
28%
20%
Lack of nearby location
Inadequate returns policy for my needs
32%
16%
17%
23%
Inconsistent pricing
16%
28%
25%
Insufficient website for my needs
Shipping mode options
22%J
29%
Lack of post-sales support
40%
43%
30%
29%IJ
Does not offer website ordering
47%
51%
38%
34% J
Lack of payment options
Inconsistent inventory on products I
need
Lack of knowledgeable support
Shipping provider options
Large
(J)
(n=342)
54%
Prices too high
Poor customer service for resolving
issues
Unclear returns policy
Product offering too limited
Shipping price options
Medium
(I)
(n=321)
17%
13%
9%
21%
17%
14%
13%
Q12. Select the top 5 most challenging aspects of purchasing from distributors today under ”Top 5 aspect(s)”. Then indicate the aspect(s) which are first,
second, and third most important.
17
H/I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Most Critical Challenges with Distributors
Base: Preferred Distributor
Small
(H)
(n=56)
Prices too high
Poor customer service for resolving issues
29%
13%
32%
Product offering too limited 4% 20%
Lack of knowledgeable support 4% 20%
J
J
52%
Medium
(I)
(n=321)
22%
Large
(J)
(n=342)
20%
40%
14% 33%
13%
5% 19%
6% 22%
6% 19%
9% 25%
Unclear returns policy
7% 20%
2%14%
1%9%
Lack of post-sales support
7% 20%
6% 22%
5% 18%
Inconsistent inventory on products I need
7% 18%
8% 21%
4%16%
4% 15%
Lack of nearby location
4%16%
3%12%
4%15%
3%10%
4% 10%
Inconsistent pricing
Insufficient website for my needs
4%13%
2%11%
Shipping speed options 5% 11%
Inadequate returns policy for my needs
2%9%
Shipping provider options 4% 9%
Shipping mode options 2% 5%
Shipping price options 4% 5%
8%
I
10% 28%
Does not offer website ordering
Lack of payment options 2%14%
39%
30%
6% 14%
21%
6% 18%
3% 10%
1%7%
5% 15%
4% 14%
2% 10%
2%13%
3% 9%
4% 10%
1% 4%
2% 7%
3% 10%
3% 11%
Most Important / Net of Most Important/2nd/3rd
Q12. Select the top 5 most challenging aspects of purchasing from distributors today under ”Top 5 aspect(s)”. Then indicate the aspect(s) which are first,
second, and third most important.
18
H/I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Anticipated Change in Suppliers
Base: Total respondents and by Annual Industrial Supply Spend
20%
11%
E
20%
E
27%
FG
57%
69%
57%G
45%
We plan to use fewer suppliers
We have no changes planned
We plan to use more suppliers
E
19%
14%
18%
24%
4%
6%
4%
4%
Total
(A)
(n=719)
Low
(E)
(n=190)
Medium
(F)
(n=303)
High
(G)
(n=226)
Don’t know
Q22. How do you see the number of suppliers you use changing in the next 3-5 years?
19
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Anticipated Change in Suppliers
Base: Total respondents and by Age
20%
57%
18%
18%
54%
57%
24%
56%
We plan to use fewer suppliers
We have no changes planned
We plan to use more suppliers
Don’t know
19%
24%
21%
15%
4%
4%
4%
5%
Total
(A)
(n=719)
21-30
(B)
(n=74)
31-50
(C)
(n=411)
51-70
(D)
(n=234)
Q22. How do you see the number of suppliers you use changing in the next 3-5 years?
20
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Anticipated Change in Suppliers
Base: Total respondents and by Preferred Distributor Size
20%
13%
J
57%
64%
14%
HI
27%
J
66%
46%
We plan to use fewer suppliers
We have no changes planned
We plan to use more suppliers
I
Don’t know
23%
19%
18%
16%
4%
5%
4%
4%
Total
(A)
(n=719)
Small
(H)
(n=56)
Medium
(I)
(n=321)
Large
(J)
(n=342)
Q22. How do you see the number of suppliers you use changing in the next 3-5 years?
21
H/I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Reason for Fewer Suppliers
Base: Anticipate Using Fewer Suppliers
n=143
Consolidating my purchasing to get a
lower price
59%
Easier to do business with fewer suppliers
48%
My preferred suppliers are broadening
their product catalogs and I don’t need as
many suppliers
25%
Business is declining
Other
15%
1%
Q23. Why do you plan to use fewer suppliers in the next 3-5 years?
22
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Purchase Methods
23
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Methods of Purchase
Base: Total Respondents
n=719
Used
Preferred
Directly from the industrial supplier's website
52%
46%
Email to a designated account representative
49%
39%
Email to customer service
48%
38%
Phone or fax to customer service
47%
37%
In-person during a sales visit from account
representative
44%
Phone or fax to a designated account representative
43%
In-person at the supplier's physical location
34%
38%
40%
From a third-party website (e.g., AmazonSupply or
Google Shopping)
27%
Electronic data exchange (EDI)
27%
34%
20%
22%
Q16. Select the top 5 method(s) you use most frequently to purchase industrial supplies under ”Top 5 used”. Then indicate up to 5 preferred methods
under “Top 5 preferred”. Your most preferred may be different from what you currently use.
24
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Methods of Purchase
Base: Age
Used
Preferred
Email to customer service
In-person at the supplier's physical
location
Electronic data exchange (EDI)
From a third-party website (e.g.,
AmazonSupply or Google Shopping)
Phone or fax to customer service
In-person during a sales visit from
account representative
Directly from the industrial
supplier's website
Phone or fax to a designated
account representative
32%
41%
37%
35%
36%
42%
35%
33%
34%
32%D
54%
49%
47%
46%
46%
53%
46%
38%
40%
43% CD
Email to a designated account
representative
18%
23% D
16%
28% D
22% D
15%
34%
34%
28%D
19%
41%D
30% D
38%
44%
43%C
30%
36%
32%
32%
45%B B
51%
32%
37%
39%
56%BC
34%
47% B
41%
31%
51%B
59% BC
28%
43%B
47%B
21-30 B (n=74)
31-50 C (n=411)
51-70 D (n=234)
Q16. Select the top 5 method(s) you use most frequently to purchase industrial supplies under ”Top 5 used”. Then indicate up to 5 preferred methods under
“Top 5 preferred”. Your most preferred may be different from what you currently use.
25
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Methods of Purchase
Base: Preferred Distributor Size
Used
Phone or fax to customer service
Email to a designated account
representative
Directly from the industrial
supplier's website
Email to customer service
In-person during a sales visit from
account representative
In-person at the supplier's physical
location
Phone or fax to a designated
account representative
From a third-party website (e.g.,
AmazonSupply or Google Shopping)
Electronic data exchange (EDI)
Preferred
45%
37%
36%
41%
38%
38%
43%
47%
45%
43%
39%
36%
43%
35%
32%
38%
32%
35%
39%
40%
35%
57%
44%
48%
54%
48%
50%
52%
53%
51%
50%
49%
48%
46%
43%
44%
43%
38%
41%
30%
48%H
40%
30%
23%
31%I
25%
24%
29%
20%
17%
23%
18%
18%
26% I
Small H (n=56)
Medium I (n=321)
Large J (n=342)
Q16. Select the top 5 method(s) you use most frequently to purchase industrial supplies under ”Top 5 used”. Then indicate up to 5 preferred methods under
“Top 5 preferred”. Your most preferred may be different from what you currently use.
26
H/I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Online Relationship Start Offline
Base: Purchase via Distributor Website, Total respondents
and Annual Industrial Supply Spend
41%
62%
E
E
69%
75%
Yes
No
FG
53%
34%
Don't know
27%
22%
5%
6%
4%
4%
Total
(A)
(n=373)
Low
(E)
(n=115)
Medium
(F)
(n=148)
High
(G)
(n=110)
Q19. Thinking of the industrial suppliers whose websites you currently purchase from, did you have an offline relationship with them before making your first
online purchase with them?
27
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Online Relationship Start Offline
Base: Purchase via Distributor Website, Total respondents
and Age
62%
62%
62%
Yes
No
Don't know
34%
34%
34%
5%
5%
4%
Total
(A)
(n=373)
31-50
(C)
(n=211)
51-70
(D)
(n=139)
Q19. Thinking of the industrial suppliers whose websites you currently purchase from, did you have an offline relationship with them before making your first
online purchase with them?
28
C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Online Relationship Start Offline
Base: Purchase via Distributor Website, Total respondents
and Preferred Distributor Size
59%
62%
66%
Yes
No
Don't know
34%
38%
5%
4%
5%
Total
(A)
(n=373)
Medium
(I)
(n=170)
Large
(J)
(n=174)
29%
Q19. Thinking of the industrial suppliers whose websites you currently purchase from, did you have an offline relationship with them before making your first
online purchase with them?
29
I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
% Spend Online
Base: Purchase via Distributor Website, Total respondents
and Annual Industrial Supply Spend
27%
31%
26%
31%
21%
32%
25%
E
E
38%
25-49
17%
E
23%
50-74
28%
24%
14%
14%
Medium
(F)
(n=148)
High
(G)
(n=110)
FG
19%
Total
(A)
(n=373)
31%
Low
(E)
(n=115)
Q18. Approximately what percent of your annual industrial supplies budget is spent through suppliers' websites?
30
<25
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
75+
% Spend Online
Base: Purchase via Distributor Website, Total respondents
and Age
27%
31%
31%
29%
24%
31%
<25
25-49
21%
26%
19%
19%
19%
Total
(A)
(n=373)
31-50
(C)
(n=211)
51-70
(D)
(n=139)
23%
75+
Q18. Approximately what percent of your annual industrial supplies budget is spent through suppliers' websites?
31
50-74
C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
% Spend Online
Base: Purchase via Distributor Website, Total respondents
and Preferred Distributor Size
27%
25%
27%
31%
31%
32%
<25
25-49
23%
26%
21%
50-74
75+
19%
17%
21%
Total
(A)
(n=373)
Medium
(I)
(n=170)
Large
(J)
(n=174)
Q18. Approximately what percent of your annual industrial supplies budget is spent through suppliers' websites?
32
I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Likelihood to Move to Web Distributor/Increase Online Purchases
Base: Total respondents and Annual Industrial Supply Spend
Total
(A)
(n=719)
Likely to move to
20%
web distributor
Likely to increase
online purchases
or order using
mobile devices
34%
Low
(E)
(n=190)
56%
75%
51%
85%
11% 55%
29%
Medium
(F)
(n=303)
65%
49%
Very likely
78%
23%
E
34%
59%
51%
High
(G)
(n=226)
82%
EG
85%
E
22%
E
38%
52%
74%
E
52%
Somewhat likely
Q21. If another distributor had a website that you found more user-friendly, how likely would you be to shift more of your spending to that distributor?
Q24. In the next 3-5 years, how likely are you to...?
33
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
90%
E
Likelihood to Move to Web Distributor/Increase Online Purchases
Base: Total respondents and Age
Total
(A)
(n=719)
Likely to move to
20%
web distributor
Likely to increase
online purchases
or order using
mobile devices
34%
21-30
(B)
(n=74)
56%
75%
51%
85%
31-50
(C)
(n=411)
31%
54%
85%
34%
49%
82%
D
Very likely
D
21%
D
58%
36%
52%
51-70
(D)
(n=234)
79%
D
88%
D
14% 52%
30%
50%
65%
80%
Somewhat likely
Q21. If another distributor had a website that you found more user-friendly, how likely would you be to shift more of your spending to that distributor?
Q24. In the next 3-5 years, how likely are you to...?
34
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Likelihood to Move to Web Distributor/Increase Online Purchases
Base: Total respondents and Preferred Distributor Size
Total
(A)
(n=719)
Likely to move to
20%
web distributor
Likely to increase
online purchases
or order using
mobile devices
34%
Small
(H)
(n=56)
56%
75%
51%
85%
14% 46%
30%
39%
Medium
(I)
(n=321)
61%
13%
70%
Very likely
59%
27%
57%
HJ
Large
(J)
(n=342)
72%
84%
H
27%
HI
41%
I
54%
81%
47%
Somewhat likely
Q21. If another distributor had a website that you found more user-friendly, how likely would you be to shift more of your spending to that distributor?
Q24. In the next 3-5 years, how likely are you to...?
35
H/I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
HI
88%
H
Barriers to Online
Base: Those who do not purchase online, Total respondents and
Annual Industrial Supply Spend
29%
25%
33%
28%
38%
25%
24%
22%
24%
19%
Too difficult to get answers
My suppliers' sites don't
Too difficult to identify /
to product or order-related show my negotiated pricing confirm product or product
questions
details
11%
9%
15%
10% 13% 11%
Don’t trust distributor's My suppliers' sites don't
site for security reasons show the delivery date
9%
8%
15%
Too difficult to place
repeat orders
Total
8%
23%
25%
My suppliers' sites aren't
updated regularly with the
latest product information
13%
9%
5%
My suppliers' sites are
too difficult to navigate
Medium F (n=77)
4%
18%
16%
5%
I don't have access to
an online device (PC,
mobile, or tablet) at
work
High G (n=55)
4%
6%
2%
No space or power
outlet for an online
device (PC, mobile, or
tablet) at work
F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
16%
14%
24%
Not all payment options are Don’t trust distributor's site
available online
for ensuring my orders are
processed correctly
Q17. Why don’t you purchase industrial supplies online?
36
25%
11%
9%
Other
11%
Barriers to Online
Base: Those who do not purchase online, Total
respondents and Age
29%
45% C
21%
28%
37%
24%
24%
40% C
Too difficult to get answers
My suppliers' sites don't
Too difficult to identify /
to product or order-related show my negotiated pricing confirm product or product
questions
details
11% 10% 10%
10% 11%
8%
Don’t trust distributor's My suppliers' sites don't
site for security reasons show the delivery date
9%
12%
3%
Too difficult to place
repeat orders
Total
19%
15%
8%
21%
23%
My suppliers' sites aren't
updated regularly with the
latest product information
7%
8%
5%
My suppliers' sites are
too difficult to navigate
31-50 C (n=102)
6%
18%
18%
5%
I don't have access to
an online device (PC,
mobile, or tablet) at
work
51-70 D (n=62)
4%
5%
5%
No space or power
outlet for an online
device (PC, mobile, or
tablet) at work
C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
16%
16%
13%
Not all payment options are Don’t trust distributor's site
available online
for ensuring my orders are
processed correctly
Q17. Why don’t you purchase industrial supplies online?
37
19%
11% 12% 10%
Other
Barriers to Online
Base: Those who do not purchase online, Total
respondents and Preferred Distributor Size
29%
33%
28%
28%
31%
26%
24%
25%
24%
19%
Too difficult to get answers
My suppliers' sites don't
Too difficult to identify /
to product or order-related show my negotiated pricing confirm product or product
questions
details
11% 14%
8%
10%
9%
12%
Don’t trust distributor's My suppliers' sites don't
site for security reasons show the delivery date
Total
Medium I (n=88)
9%
7%
14%
Too difficult to place
repeat orders
Large J (n=78)
8%
24%
My suppliers' sites aren't
updated regularly with the
latest product information
7%
10%
18%
17%
5%
8% J
23%
17%
17%
Not all payment options are Don’t trust distributor's site
available online
for ensuring my orders are
processed correctly
1%
4%
5%
5%
11% 11%
8%
My suppliers' sites are I don't have access to anNo space or power outlet Other (Please Specify):
too difficult to navigate
online device (PC,
for an online device (PC,
mobile, or tablet) at
mobile, or tablet) at
work
work
Q17. Why don’t you purchase industrial supplies online?
38
16%
14%
I/J Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Streamlining Purchase
39
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Purchase Direct from Manufacturer
Base: Total respondents and Annual Industrial Supply Spend
65%
52%
E
66%
EF
75%
We have considered this, but do
not currently do it
G
37%
G
30%
5%
Total
(A)
(n=719)
32%
23%
FG
12%
Low
(E)
(n=190)
We already do this
3%
Medium
(F)
(n=303)
We have not considered doing
this
2%
High
(G)
(n=226)
Q25. When it comes to buying direct from manufacturers, which of the following best describes your company?
40
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Purchase Direct from Manufacturer
Base: Total respondents and Age
65%
57%
65%
66%
We already do this
We have considered this, but do
not currently do it
D
30%
41%
31%
26%
5%
3%
4%
7%C
Total
(A)
(n=719)
21-30
(B)
(n=74)
31-50
(C)
(n=411)
51-70
(D)
(n=234)
We have not considered doing
this
Q25. When it comes to buying direct from manufacturers, which of the following best describes your company?
41
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Likelihood to Increase/Start Purchasing Direct from Manufacturer
Base: Total respondents and Annual Industrial Supply Spend
Total
(A)
(n=466)
Increase DfM
purchase
32%
Low
(E)
(n=98)
60%
Start DfM
purchase 10% 60%
93%
71%
28%
63%
9% 41%
50%
Very likely
Medium
(F)
(n=199)
91%
31%
6%
High
(G)
(n=169)
61%
72%
E
92%
78%
E
Somewhat likely
Q26. How likely are you to increase purchasing directly from a manufacturer?
Q27. How likely are you to start purchasing directly from a manufacturer?
42
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
37%
21%
EF
58%
70%
E
95%
91%
EF
Likelihood to Increase/Start Purchasing Direct from Manufacturer
Base: Total respondents and Age
Total
(A)
(n=466)
Increase DfM
purchase
32%
Start DfM
purchase 10% 60%
31-50
(C)
(n=269)
60%
93%
71%
33%
12%
Very likely
51-70
(D)
(n=155)
59%
65%
D
92%
77%
D
32%
8% 43%
Somewhat likely
Q26. How likely are you to increase purchasing directly from a manufacturer?
Q27. How likely are you to start purchasing directly from a manufacturer?
43
C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
61%
51%
93%
% of Orders Needing Same Day Delivery
Base: Total respondents and Annual Industrial Supply Spend
5%
15%
4%
7%
9%
EG
20%
13%
20%
4%
12%
E
E
21%
24%
75+
50-74
F
60%
Total
(A)
(n=719)
71%
62%
51%
Low
(E)
(n=190)
F
<25
Medium
(F)
(n=303)
High
(G)
(n=226)
Q30. For what percent of your orders do you need same day delivery for at least part of an order?
44
25-49
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
% of Orders Needing Same Day Delivery
Base: Total respondents and Age
5%
15%
3%
CD
27%
6%
4%
13%
14%
D
20%
22%
14%
D
27%
75+
B
60%
58%
BC
68%
21-30
(B)
(n=74)
31-50
(C)
(n=411)
51-70
(D)
(n=234)
Q30. For what percent of your orders do you need same day delivery for at least part of an order?
45
25-49
<25
43%
Total
(A)
(n=719)
50-74
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Importance of Single Shipping/Distributors Offering
Base: Total respondents and Annual Industrial Supply Spend
Total
(A)
(n=719)
Importance of
21%
Single Shipping
Low
(E)
(n=190)
45%
66%
14% 37%
52%
Very important
Distributors
Offering 15%
74%
11%
11%
69%
All offer this
Medium
(F)
(n=303)
21%
51%
E
High
(G)
(n=226)
73%
E
27%
E
43%
69%
E
Somewhat important
20%
FG
Some offer this
16%
76%
8%
17%
77%
7%
None offer this
Q28. How important would it be for a distributor to offer a single shipping company to deliver all your small packages and freight shipments, using a single
delivery time and driver for scheduling and billing?
Q29. Do any of your current distributors offer a single shipping company to deliver all your small packages and freight shipments, using a single provider for
scheduling, transportation and billing?
46
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Importance of Single Shipping/Distributors Offering
Base: Total respondents and Age
Total
(A)
(n=719)
Importance of
21%
Single Shipping
21-30
(B)
(n=74)
45%
66%
26%
31-50
(C)
(n=411)
50%
Very important
Distributors
Offering 15%
74%
11%
20%
D
All offer this
73%
76%
D
23%
D
49%
D
51-70
(D)
(n=234)
72%
D
16% 37%
53%
Somewhat important
7%
Some offer this
17%
D
74%
9%
9%
76%
15%
C
None offer this
Q28. How important would it be for a distributor to offer a single shipping company to deliver all your small packages and freight shipments, using a single
delivery time and driver for scheduling and billing?
Q29. Do any of your current distributors offer a single shipping company to deliver all your small packages and freight shipments, using a single provider for
scheduling, transportation and billing?
47
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Demographics and Firmographics
48
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Age / Gender
Base: Total Respondents
n=719
10%
30%
21 to 30
22%
Female
31 to 40
41 to 50
27%
22%
10%
0%
Age
51 to 60
78%
Male
61 to 70
71 years or
older
Gender
Q3. What is your age?
Q35. What is your gender?
49
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Industry
Base: Total respondents
n=719
Aerospace
Automotive
Commercial Construction
Residential Construction
Contractor / Service Provider
Energy
Government / Military
Hospital / Healthcare
Hospitality
Machine Shop
OEM (original equipment manufacturer)
3%
7%
7%
6%
10%
4%
2%
10%
2%
4%
4%
25%
General Manufacturing / Processing
Mining
Utilities
Other
1%
3%
12%
Q32. Which of the following best describes your company?
50
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Revenue
Base: UK respondents
n=200
Less than £35,000
7%
£35,000 up to £68,000
8%
11%
£68,001 up to £170,000
£170,001 up to £350,000
4%
£350,001 up to £510,000
5%
£510,001 up to £680,000
7%
£680,001 up to £1.5 million
8%
13%
£1,500,001 up to £3.5 million
11%
£3,500,001 up to £7 million
9%
£7,000,001 up to £14 million
19%
More than £14 million
Don’t Know
1%
Q33. Which of the following includes the total annual revenue of your company?
51
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Revenue
Base: France respondents
n=201
Less than €50,000
€50,000 up to €100,000
2%
4%
€100,001 up to €250,000
6%
€250,001 up to €500,000
7%
€500,001 up to €750,000
8%
€750,001 up to €1 million
7%
€1,000,001 up to €2 million
7%
€2,000,001 up to €5 million
€5,000,001 up to €10 million
€10,000,001 up to €20 million
More than €20 million
9%
12%
10%
23%
Q33. Which of the following includes the total annual revenue of your company?
52
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Revenue
Base: Germany respondents
n=200
Less than €50,000
€50,000 up to €100,000
6%
4%
€100,001 up to €250,000
6%
€250,001 up to €500,000
6%
€500,001 up to €750,000
3%
€750,001 up to €1 million
6%
€1,000,001 up to €2 million
6%
€2,000,001 up to €5 million
10%
€5,000,001 up to €10 million
11%
€10,000,001 up to €20 million
10%
More than €20 million
29%
Q33. Which of the following includes the total annual revenue of your company?
53
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Revenue
Base: Italy respondents
n=118
Less than €50,000
€50,000 up to €100,000
1%
4%
10%
€100,001 up to €250,000
13%
€250,001 up to €500,000
€500,001 up to €750,000
€750,001 up to €1 million
2%
6%
€1,000,001 up to €2 million
8%
€2,000,001 up to €5 million
12%
€5,000,001 up to €10 million
13%
€10,000,001 up to €20 million
13%
More than €20 million
13%
Q33. Which of the following includes the total annual revenue of your company?
54
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Job Title
Base: Total respondents
n=719
Buyer
9%
Commodity manager
8%
Contract manager
10%
Maintenance manager/supervisor
11%
Materials manager
4%
24%
Owner/principal
10%
Procurement manager/director/officer
10%
Purchasing manager/director/officer
Sourcing manager/director/officer
Supply management director/Supply chief
Other
1%
4%
8%
Q31. Which of the following best matches your job title?
55
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Tenure with Company
Base: Total Respondents
n=719
4%
Less than 1 year
36%
1-5 years
31%
5-10 years
30%
More than 10
years
Q34. How long have you worked for any company in a role where you have sourcing / purchasing decisions?
56
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Supplies Purchased
Base: Total respondents
n=719
Adhesives and sealants / Chemicals
Automation and instrumentation
Cutting tools
Electrical supplies
Grinding / finishing
Hand tools
Hoses, reels, cords
HVAC supplies
Hydraulics
Industrial machinery
Lighting
Lubricants
Maintenance, Repair and Operation Supplies
Material handling supplies
Motors, controls, and drives
Pipes and tubing
Pneumatics
Power tools
Preventive Maintenance
Pumps
Safety / personal equipment
Sanitation / Janitorial
Sprockets and gears
53%
32%
42%
57%
27%
54%
33%
20%
27%
34%
41%
39%
48%
30%
25%
32%
24%
54%
28%
32%
52%
46%
17%
Q4. Which of the following types of industrial supplies / products does your company purchase? Please consider catalog / stock type products, not custom
made items. Also, include just those products your company purchases, not rents.
57
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Role for Purchasing
Base: Total Respondents
n=719
I am the sole decision
maker
47%
I am one of several
decision makers
40%
13%
I strongly influence the
sourcing / purchasing
decisions
Q5. Which of the following best describes your role in sourcing / purchasing decisions for these types of industrial supplies?
58
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Spend
Base: UK Respondents
n=200
29%
36%
35%
Less than £ 35,000 per year
£ 35,000 to less than £ 170,000 per year
£ 170,000 per year or more
Q6. What is your company’s approximate annual spend for industrial supplies?
59
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Spend
Base: France Respondents
n=201
22%
33%
45%
Less than € 50,000 per year
€ 50,000 to less than € 250,000 per year
€ 250,000 per year or more
Q6. What is your company’s approximate annual spend for industrial supplies?
60
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Spend
Base: Germany Respondents
n=200
23%
33%
44%
Less than € 50,000 per year
€ 50,000 to less than € 250,000 per year
€ 250,000 per year or more
Q6. What is your company’s approximate annual spend for industrial supplies?
61
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Annual Spend
Base: Italy Respondents
n=118
22%
31%
47%
Less than € 50,000 per year
€ 50,000 to less than € 250,000 per year
€ 250,000 per year or more
Q6. What is your company’s approximate annual spend for industrial supplies?
62
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Appendix
63
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Factors When Selecting a Distributor
Base: Total Respondents
n=719
Top Factors
Quality of products
Most Important
61%
30%
49%
Best value
17%
46%
Best prices
Customer service
5%10% 10% 25%
39%
Wide selection of products
10%10% 38%
13% 13% 8% 34%
42%
Speed of delivery
13% 9% 52%
4%8% 12% 24%
33%
3%6%
10% 19%
Technical support is available to answer questions
31%
5%5% 8% 18%
Reputation
30%
6%6%5% 16%
Relationship with sales rep
20%
3%
4%
6% 13%
Company approval (vendors must be approved by my company)
20%
3%
5%
4% 12%
18%
Returns policy
2%
3%
3% 9%
Adequate geographical coverage
16%
3%3%
3%9%
User-friendly website
16%
3%
2%
3% 8%
Access to unique items
15%
4%
2% 3%8%
2% 6%
2%
2%
Uses my preferred shipping carrier
9%
Most Important
2nd Most Important
Q11. Select the top 5 factor(s) you rely on most frequently when deciding which distributors to purchase
from under ”Top 5 factor(s)”. Then indicate the factor(s) which are first, second, and third most important.
64
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
3rd Most Important
Most Important Reasons for Using Distributor
Base: Preferred Distributor
Small
(n=56)
Best prices
36%
9%7% 52%
Personal service
14% 16% 13% 43%
Speed of delivery
14% 18% 11% 43%
Nearby location 7%
4%16%
27%
Access to unique items 5%
4%
5% 14%
Level of technical support provided 5%
4%
7% 16%
Uses my preferred shipping carrier 5%
2%
2% 9%
Level of customer service provided 4%
11%
5% 20%
Payment options 4%9%7% 20%
User-friendly website 2%
5%
4% 11%
Shipping mode options 2%
4%
2% 7%
Wide selection of products 2%
2%
5% 9%
Shipping price options 0%
5%
4% 9%
Returns policy 0%
2%
5% 7%
Medium
(n=321)
31%
14% 9%
Large
(n=342)
26%
55%
15% 11% 52%
2%
6%4% 12%
5%8% 6% 19%
10% 14% 11% 35%
11% 12% 10% 33%
6% 9% 7% 21%
7%3%
5% 15%
5%
3%
6% 15%
2%
3%
4% 10%
11% 8% 12%
8% 8% 8% 25%
31%
3%
3%
3% 8%
2%
2%
4% 7%
6% 11% 10% 27%
6% 9% 8% 23%
5%6% 8% 18%
3%
5%5% 13%
3%
3%7% 14%
4%6%4% 14%
2%
3%
3% 8%
3%
3%
4% 10%
14%
13% 8% 10% 31%
14% 10% 38%
2%
5%
3% 11%
4%
3%
4% 10%
4%
2%
4% 10%
2%
4%7% 14%
Most Important
2nd Most Important
3rd Most Important
Q14. Select the top 5 factor(s) that are most important to you when purchasing industrial supplies from [SHOW RESPONSE SELECTED IN Q13] under ”Top 5
factor(s)”. Then indicate the factor(s) which are first, second, and third most important.
65
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Most Critical Challenges with Distributors
Base: Preferred Distributor
Small
(n=56)
Prices too high
29%
13%11% 52%
2%18%
Poor customer service for resolving issues 13%
5%
7% 20%
Lack of post-sales support 7%
5%
5% 18%
Inconsistent inventory on products I need 7%
Unclear returns policy 7%
4%9% 20%
Shipping speed options 5%
2%
4% 11%
Product offering too limited 4%
11%
5% 20%
Lack of knowledgeable support 4%
11%
5% 20%
Lack of nearby location 4%9%4% 16%
Does not offer website ordering 4%9%4% 16%
Inconsistent pricing 4%
4%
5% 13%
Shipping provider options 4%
4%
2% 9%
Shipping price options 4%
2% 5%
Lack of payment options2%
7%
5% 14%
Insufficient website for my needs2%
5%
4% 11%
Inadequate returns policy for my needs2%
2%
5% 9%
Shipping mode options2%
2%
2% 5%
32%
Medium
(n=321)
22%
10% 9%
14% 10% 9%
Large
(n=342)
40%
20%
33%
10% 12% 6% 28%
8% 6%7% 21%
1%
4%
4% 9%
2%
6%6% 14%
5%5%6% 15%
4%6%4% 14%
5%8% 7% 19%
6% 9% 6% 22%
6%6%7% 19%
9% 9% 7% 25%
3%
5%
3% 12%
4%
5%6% 15%
4%6%5% 15%
6%4%
5% 14%
6%5%6% 17%
8% 8%5% 21%
3%
2%
4% 9%
4%
3%
3% 10%
3%
2%
4% 10%
3%
4%
4% 11%
3%
4%
3% 10%
4%
2%
4% 10%
1%
2%
4% 7%
3%
3%
5% 10%
2%
3%
4% 10%
2%
6%6% 13%
1%
1%
2% 4%
39%
5%6%7% 18%
6% 9% 7% 22%
Most Important
2%
3%
3% 7%
2nd Most Important
Q12. Select the top 5 most challenging aspects of purchasing from distributors today under ”Top 5 aspect(s)”.
Then indicate the aspect(s) which are first, second, and third most important.
66
10% 9%
13% 10% 7% 30%
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
3rd Most Important
Resources for Researching a New Distributor
Base: Annual Industrial Supply Spend
Used
Distributor website
"Word of mouth" or personal references
Distributor print/ hard copy catalogue
User review and recommendations
Internet (blogs, social media, forums, etc.)
Company sales rep
Trade shows
Reviews from independent trade publications
Web product videos
Emails
Technical articles or whitepapers from the product's
manufacturer
Preferred
56%
47%
54%
47%
43%
39%
38%
33%
32%
35%
37%
38%
35%
34%
29%
33%
43%E
52%EF
28%
50% E
51% E
25%
35% E
37% E
22%
24%
19%
20%
E
31%
26%
18%
28% E
28%E
F
51% F
41%
48%
38%
39%
38%
32%
27%
29%
33%
37%
33%
35%
29%
27%
26%
34% E
38%
32%
47% E
49%E
29%
33%
34%
18%
22%
21%
18%
26%EG
17%
22%
25%
28%
Q10. Select the top 5 sources you use most frequently to research a new distributor under ”Top 5 used”. Then indicate the sources (s) which you would
prefer to use to research a new distributor. Your most preferred may be different from what you currently use.
67
E/F/G Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Low E
(n=190)
Medium F
(n=303)
High G
(n=226)
Factors When Selecting a Distributor
Base: by Age
Top Factors
Quality of products
Wide selection of products
Best prices
Customer service
Speed of delivery
Best value
Reputation
Access to unique items
Technical support is available to answer questions
Returns policy
Company approval (vendors must be approved by my company)
Relationship with sales rep
User-friendly website
Uses my preferred shipping carrier
Adequate geographical coverage
46%
58% BC
72%
38%
32%
34%
36%
42% BC
56%
36%
40%
47%
34%
39%
41%
34% B
49% B
54%
31%
31%
27%
27% CD
17% D
9%
26%
30%
34%
23%
20%
14%
20%
20%
19%
19%
20%
21%
19%
15%
16%
18% CD
10%D
5%
16%
17%
13%
Most Important (1st & 1/2/3)
23%
28%
11% CD 23%
2%20%
3% 16%
26%
8%
31%
11%
18%BC
7%
23%
5% 24%
4% 26%
7% D 23%
5% D 25%
1% 23%
7%
22%
17% B B
20%
5% 23%
7%
16%D
3%14%
7% CD 16% CD
1% 8%
2% 6%
8%
18%
5% 18%
3%18%
1% 12% D
D 3% 12% D
0% 3%
4% 14%
3%13%
2% 9%
1% 11%
4% 13%
2% 14%
5% D 11%
3% 7%
1% 7%
3% 14% CD
2% 6% D
2% 3%
3%15% D
3% 9%
3% 6%
Q11. Select the top 5 factor(s) you rely on most frequently when deciding which distributors to purchase
from under ”Top 5 factor(s)”. Then indicate the factor(s) which are first, second, and third most important.
68
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
38%
36% B
48%
63% BC
43% BC
38% B
42% B
21-30 B
(n=74)
31-50 C
(n=411)
51-70 D
(n=234)
Reasons Look for New Products
Base: by Age
23%
D
30%
18%
14%
20%
15%
C
30%
C
25%
43%
37%
1%
21-30
(B)
(n=74)
I heard/ read about a new
product and thought it may be
useful for my business
Customer requirements
18%
B
26%
I like to stay on the cutting edge
of available products
0%
31-50
(C)
(n=411)
1%
51-70
(D)
(n=234)
Internal needs
Other
Q8. What is the MOST common reason you look for new products for your business?
69
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Resources for Researching New Products
Base: by Age
Used
Distributor website
Internet (blogs, social media, forums, etc.)
"Word of mouth" or personal references
Trade shows
Distributor print/ hard copy catalogue
Reviews from independent trade publications
Company sales rep
Emails
Technical articles or whitepapers from the product's
manufacturer
User review and recommendations
Web product videos
Preferred
43%
43%
49%
53%
D
35%
33% D
55%
62%B
43% D
38%
31%
41%
39%
39%
41%
49% D
40%
39%
42%
45%
36%
39%
36%
36%
43%
50%
32%
27%
25%
31%
31%
34%
28%
31%
36%
24%
25%
20%
21%
26%
36%
38%B
32%
44%
38%
22%
35% BB
38%
38%
33%
36%
32%
36%
35%
32%
24%
21%
34%
27%
32%
28%
30%
38%C
24%
23%
19%
Q9. Select the top 5 method(s) you use most frequently to research a new product under ”Top 5 used”. Then indicate the method(s) which you would
prefer to use to research a new product. Your most preferred may be different from what you currently use.
70
B/C/D Statistically significant at a 95% level of confidence
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
21-30 B
(n=74)
31-50 C
(n=411)
51-70 D
(n=234)
Where Goods Are Sourced
Base: Total Respondents
n=719
70.4
Domestically (within my country)
25.7
Europe (outside of my country)
15.5
China
11.5
U.S
ASEAN Nations
6.3
Japan
5.5
Africa
4.3
Canada
4.1
Middle East
3.8
Central America
3.6
Hong Kong
3.6
South Korea
3.0
South America
2.2
Taiwan
2.2
Mexico
1.4
Q38. From where do you source the industrial goods you purchase?
71
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Where Goods Are Sourced
Why Source Within Geography
Base: Total Respondents
n=719
Base: Total Respondents
n=719
70.4
Domestically (within my country)
25.7
Europe (outside of my country)
15.5
China
U.S
25%
29%
28%
33%
32%
24%
44%
26%
17% 12%
21%
16%
22%
*all other base sizes are too small (<30)
11.5
ASEAN Nations
6.3
Japan
5.5
Africa
4.3
Canada
4.1
Middle East
3.8
Central America
3.6
Hong Kong
3.6
South Korea
3.0
South America
2.2
Taiwan
2.2
Mexico
1.4
Cost
Product safety standards
Other
Proximity / Speed of Delivery
Ease of doing business
Q38. From where do you source the industrial goods you purchase?
Q39. Rate why you predominantly source goods
72
24%
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights
Quality / Reliability of Product
Fewer communication barriers
Expect Onsite Post Sales Services to be Provided
Base: Total Respondents
n=719
22%
Yes
No
78%
Q48. Do you expect your distributor to provide onsite post sales service (repairs, tech support, etc.)?
73
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.
© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Marketing Research – Purchaser Insights