In this installment of the AD Report, Jeffrey Beall, AD’s president of the PHCP (Plumbing, PVF and HVAC) Business Unit, connected with AD associates to highlight the strength of the behind-the-scenes magic that makes it a great company. 

Jeffrey Beall: Today, AD supports 14 divisions across the United States, Mexico and Canada with an amazing group of more than 200 associates who keep us sharp and moving at a fast pace. Since my start at AD back in 2012, something I noticed right off the bat was the high caliber of individuals working at AD. 

From the front desk to the leadership team, AD takes pride in the people who represent the brand and interact with members, suppliers and associates daily. Every individual is connected to the AD experience and demonstrates our core AD fundamentals that we take so much pride in. 

We are now member-owned and -governed and the direction we take as a company comes directly from the companies who make up AD. Our AD owner/member boards, committees, councils and task forces own the vision and future path we take by setting budgets and establishing policies and programs. They are incredible partners and consistently give us honest feedback and strategies the AD team can put into motion. 

We are grateful to have impressive thought leaders who bring us big ideas that change the course of the way we do business. A lot of work goes into making AD a great company. Though many of you know the divisional leadership, we are blessed to have a strong operations team full of hardworking, talented people who allow us the power to make changes and bring ideas to fruition. 

We ensure we have the proper personnel and leadership to represent the initiatives we take on to help our members and suppliers grow.

I am thankful to have been given the opportunity to lead a strong team of individuals in the PHCP business unit and to be led and guided by AD’s CEO Bill Weisberg. We wanted to take this issue of the AD Report to highlight some of the unsung AD heroes who run the shared services and programs that raise the bar and bring increased value to our 850-plus independent owner/members and supplier partners.

Robust Financial Controls 

Jeffrey Beall: Drew, you have been with AD since 2016 as the CFO. What is the most rewarding aspect of your day-to-day in the office?

Drew Moyer: Contributing to the broad value that AD brings to members is, to me, the most important and rewarding aspect of life at AD. We have an important mission and AD associates are aligned around it. I have the pleasure of leading a team that is as qualified, professional, talented and control-oriented as those in public companies and global professional service firms. 

The scale of AD allows us to recruit talent, design systems and implement controls that most groups can’t support. We have more than 60 associates working in finance, accounting and IT alone. Our organization and systems allow us to bring multiple services to members, with accompanying reporting transparency and accountability. And among these, the best for me is the people I work with.

JSB: At AD, we continuously work to raise the bar for our owner/members and supplier partners. What has been the most impactful innovation you have seen come to fruition?

DM: There have been many innovations, but I’ll highlight two. Our sophisticated investment function and treasury model started in the early years of AD. Yet, it is constantly growing and evolving, with continuous improvement and innovation being a key part. Innovation occurs by employing new cash management techniques and investment strategies. It’s governed by the Investment Committee of the AD board and provides investment income to cover our operating costs.

Another area of innovation is in member reporting. A few years ago, we implemented a next-generation data visualization and analytics platform. Combined with other elements of our data architecture, the platform provides apps and dashboards, custom and embedded analytics and reporting for our members. 

It’s especially important in tracking and identifying higher earning opportunities in supplier programs. Many of our members report that this interactive reporting and “what if” scenario modeling are recent examples of innovation leading directly to more value.

AD Service Provider Program 

Jeffrey Beall: Kevin, you bring additional value to the AD community of members and suppliers through savings. These efficiencies span many different categories and cover various business areas where members need to spend. It was important for members to have a dedicated individual head up this initiative to drive cost efficiencies to the collective group. Tell us a little about your program and what you have learned.

Kevin Druecker: The AD Service Provider program helps our members solve operational challenges to grow and strengthen their businesses. We do this by delivering a program that helps members streamline operations, innovate processes, increase knowledge through thought leadership, gain efficiencies, reduce costs and deliver profitable rebates to reinvest into the business.

AD independent distributors run lean, complex businesses. As the needs of their customers continue to evolve, they look to transform their business operations to deliver world-class service. Some members fully outsource business functions where they have a skillset or headcount gap. 

Others leverage the latest technology offered by AD Service Providers to supplement existing teams increasing efficiency or adding new service offerings to their customers. Members implement technology, such as cyber-security, to protect their businesses against disruptive cyberattacks. AD does the work to curate and vet providers, saving members valuable time in the evaluation process.

We are elevating the role of service providers as community partners in a relationship where everyone wins — through a strong team of AD associates dedicated solely to the service provider program. We look to bring in service providers who understand independent distribution and have a track record of success. 

Today, our providers support members with marketing, information technology, finance, operations, logistics, transportation and human resources. We’ve received positive feedback on our new program, which is encouraging as we meet members’ evolving needs to compete, win and remain strong independents.

AD Training and Education 

Jeffrey Beall: We were excited last year to launch the Center for Independent Distributor Leadership (CIDL), a development program designed to prepare current and future leaders of independent distribution with the competencies and experiences to build long-term, sustainable success for their companies. 

This program will give members structured education pathways in leadership, sales, and operations for up-and-coming leaders to gain core competencies for their future. This initiative addresses members’ need to help develop their top talent. Can you tell us a little about the program?

Brandon Hagan: Let me start by saying we are so thankful for the members’ engagement in the CIDL in steering the curriculum and filling up the programs. It’s been such a pleasure and a privilege for our member education team to serve our membership in this capacity. We’ve been happy to hear that the value they’re seeing beyond the training is the multidivisional networking and learning that’s taking place. 

These programs offer members unique opportunities to get to know members from divisions they may never cross paths with — making information and idea sharing much easier when they find new friends. We love to hear when our members walk away inspired with fresh ideas to act on with the help of others they met in the group. 

JSB: For any members who have not taken advantage of this program, what would you want them to know?

BH: In addition to delivering exceptional content, our goal is to continue ensuring we leverage AD’s size and scale to make these programs and top-notch instructors affordable to members. From developing their executive teams to helping with success planning, the CIDL is here to give our members the development opportunities they need to attract and retain top talent and continue their journeys of generational growth. 

Content will be evolving regularly, so check back in: www.adhq.com/cidl

AD’s eCommerce Program

Jeffrey Beall: Caroline, AD’s eCommerce Program has been consistently growing from its inception back in 2017. What’s new in the program, and what factors differentiate it from others?

Caroline Ernst: Yes, we are going into our seventh year providing eCommerce services to the AD community. One thing that stays consistent is the landscape is ever-changing. It’s a complex road to navigate and we are happy to help our members and suppliers get acquainted with the digital world and work closely with them on their journey. The AD independent distributor now has a stronger, competitive position in the market with the AD eCommerce Solutions team as a trusted partner.

Working directly with members helps us refine the program, continuously improving the product we can offer. Today, we leverage an automated process to provide digitally connected distributors with better, more up-to-date product content. What makes our program unique is the AD digital ecosystem, connecting the suppliers’ content source of truth to the members’ eCommerce platform. 

This ensures that distributors and their buyers can access accurate and comprehensive product information faster when making purchasing decisions. It ultimately makes a better content experience for the supplier, distributor and end customer.

It is paramount to diligently stay on top of current trends, giving forethought to the direction the landscape is going. That being said, I most certainly could not do it alone. I am surrounded by my AD Digital Success team, all experts in this field to help members accelerate their digital journey. 

We could not help the more than 220 members currently in the program without our team, including the eCommerce Steering Committee, made up of active AD owner/members passionate about staying relevant and in front of the digital transformation curve. 

Jeffrey Beall has been with AD since 2012 and is the AD PHCP Business Unit president. In his role, he is responsible for directing the strategic mission and vision of PHCP Divisions regarding bringing AD members and supplier partners together for mutual growth opportunities. Prior to joining AD, he had a 16-year career in distribution as CEO of a member company. During that time, he served on the AD LLC board from 2009 through 2011 and the PVF Divisional Board.