Heating, Air-conditioning and Refrigeration Distributors International (HARDI) Foundation sponsored three HARDI Distributor Members and three HARDI Manufacturer Members to participate in the Optimizing Channel Compensation Consortium being conducted by Texas A&M University on behalf of the Council for Research on Distributor Best Practices.

The 18-month study which kicked-off February 24, 2012 was designed to identify best practices in demonstrating value and creating fair compensation for all channel partners working within wholesale distribution. Dr. Barry Lawrence, Sentil Gunasekaran, and Pradip Krishnadevarajan of Texas A&M will work individually with all participating members over the next several months to assess channel compensation best practices HARDI members can put into practice to increase shareholder value.

This marks the third consecutive consortium that the HARDI Foundation has sponsored. HARDI member participation has historically been reserved to distributors, but the unique, channel-wide challenge of channel compensation prompted HARDI Foundation Trustees to convince Texas A&M to include supplier participation in the research as well. HARDI wholesale distributor members participating in the study include:

Crescent Parts & Equipment Company Incorporated from Manchester, Missouri

  • G.W. Berkheimer Company Incorporated from Portage, Indiana
  • Johnson Supply from Houston, Texas
  • HARDI Supplier members participating in the study include:

    • Nordyne from O’Fallon, Missouri
    • Allied Air Enterprises from West Columbia, SC
    • Superior Radiant Products of Stoney Creek, Ontario

    “This consortium will greatly serve the supply-chain because all parties must identify how they are uniquely adding value to their customers. Are the services provided still valued and relevant for compensation? If not, stop doing them and let’s identify the ones that will better assist our customers. These are all great questions that need to be addressed throughout the chain,” says Sheila Smiggen, Allied Air Enterprises’ Business Strategy Manager. “Partnering, transparency and mutually beneficial goals will insure a win-win for both distributors and OEMs. As an OEM, it is great to have a seat at the table for open dialog to support one another’s long-term profitably growth and identify the best means for compensation.”

    For more information about HARDI’s involvement in the 2012 Optimizing Channel Compensation Consortium, 2011 Optimizing Distributor Growth and Market Share or the 2010 Sales and Marketing Optimization Consortium, please contact Emily Saving (esaving@HARDInet.org), HARDI’s Director of Education & Research Foundation.