John J. Engel
Senior Vice President and Chief Operating Officer

Q: Considering that you’ve run businesses in multiple industries, what attracted you to WESCO?
A: In the overall supply chain, distributors are a critical link, and WESCO is one of the most progressive. The Company is continuously uncovering new ways to serve customers with new products and applications, more efficient procurement and information systems, and costeffective, value-added services. It’s a challenging and exciting business, considering the opportunities that exist for developing new service models and supply-chain solutions.

Q: What are the most important components of your plan to generate continued growth and profitability?
A: We believe our strategy for broad-based operational excellence is working. We are not dependent on new breakthroughs or major investments to achieve incremental performance gains.We think of this as the “power in the base.” WESCO has a large and diverse customer, industry, and geographic base. We have a broad product portfolio and a well-established sales and service network. However, our internal benchmarking clearly shows that some customers and suppliers are more profitable than others, and some branch locations and sales teams are more effective. Our 2005 operating plan addresses these opportunities. We will support and invest in the customers, suppliers, and branch operations that are most effective and demonstrate improving sales and profitability trends. These relationships and internal operations are the standard-setters for the entire organization and clearly show all employees what is possible. We will take a different approach to better understand and appropriately react to those customers, suppliers, and organizational units that fall short of our “best in class” expectations. Regardless of the needs and unique circumstances, we fully intend to raise the bar in terms of quality, reliability, and performance.

Q: What is the status and future for LEAN implementation across WESCO?
A: All branch operations and support functions are actively engaged in LEAN methodologies, which were initiated in 2003 and expanded during the past year with 17 active initiatives and more than 1,100 improvement events now completed. In 2005 and beyond, LEAN will be expanded to address administrative process streamlining and simplification and overall supply chain optimization, contributing to a strong culture of continuous improvement across WESCO.

Q: What is WESCO doing to further develop its organization and its people?
A: At the heart of this year’s record performance is our people and their extraordinary commitment to delivering results by partnering with suppliers and providing solutions for customers. We believe our employees and their “extra effort” attitude are a clear differentiator for WESCO and a key determinant of our future success. Recognizing this, we’ve launched a talent management process focused on professional development and organizational effectiveness. We’re committed to increased investment in training and development, and we’re confident that this will create value for our customers and for our shareholders.

Q: What is your outlook on 2005?
A: We have strong momentum as we enter 2005. Our base business offers excellent opportunities for organic growth and operating margin expansion. Our business model is working and our committed, talented employees and seasoned management team are establishing a track record of meeting commitments and satisfying customers. The future is bright.


Click here for Q&A with Stephen A. Van Oss, Senior Vice President and Chief Financial and Administrative Officer