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Square D and Graybar lock up IBM contract

Nov. 1, 2003
Staging a major coup in the fiercely competitive national accounts arena, Schneider North America's Square D Co., Palatine, Ill., locked up a contract

Staging a major coup in the fiercely competitive national accounts arena, Schneider North America's Square D Co., Palatine, Ill., locked up a contract to supply all electrical distribution, control and automation systems to all U.S. facilities of IBM Corp., Armonk, N.Y., for the next three years. Graybar Electric Co., St. Louis, will handle order management and tracking of sales and deliveries for the entire contract through its locations nationwide. Square D estimated the contract's volume at $25 million annually.

Nearly three years in the works, the deal makes Groupe Schneider/Square D products the first choice at IBM's real estate and site operations throughout the country, including manufacturing plants, data centers, administrative offices and other facilities. The deal also includes Square D OEM components for IBM products such as mainframes.

Square D and its competitors were subjected to intensive analysis on factors ranging from breadth and quality of product offering to distributor support and contractor preference, said William Schaphorst, manager of strategic accounts for Square D and Schneider North America, who oversees the contract on the Square D side.

The move to standardize on one manufacturer of these products is part of IBM's pursuit of "more sophisticated approaches to cost reduction," said Ray Gunner, manager of IBM's southern region site operations.

Square D called Graybar an integral component in the agreement. One reason IBM chose Graybar was for its information systems, which will address problems of information gathering and reporting, said Chuck Holstrom, national accounts manager for Graybar. IBM will use the systems to track and manage product and information flow through its facilities and those of its trading partners. Both Square D and Graybar have assigned national account teams and specialists to the IBM account.

The agreement treats Graybar strictly as the channel for Square D products. Graybar is hoping to expand that list to include other products and other vendors it represents nationally, said Holmstrom, but no agreement has been reached on that point.

About the Author

Doug Chandler | Senior Staff Writer

Doug has been reporting and writing on the electrical industry for Electrical Wholesaling and Electrical Marketing since 1992 and still finds the industry’s evolution and the characters who inhabit its companies endlessly fascinating. That was true even before e-commerce, LED lighting and distributed generation began to disrupt so many of the electrical industry’s traditional practices.

Doug earned a BA in English Literature from the University of Kansas after spending a few years in KU’s William Allen White School of Journalism, then deciding he absolutely did not want to be a journalist. In the company of his wife, two kids, two dogs and two cats, he spends a lot of time in the garden and the kitchen – growing food, cooking, brewing beer – and helping to run the family coffee shop.

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