We are writing to inform you that after rigorous review and deliberation, HPN Select has decided to migrate all Maintenance, Repairs, and Operations (MRO) business to Wilmar (The Home Depot) effective February 28, 2019. HPN Select is fully prepared to work with your team to ensure a swift and seamless transition over the next several weeks to the Wilmar program.
Why the Transition to Wilmar?
HD Supply has been the sole exclusive vendor for the MRO category for roughly seven years. On behalf of our members, HPN Select seeks to constantly find the most valuable solutions in an ever-changing housing industry. Thus, HPN Select ran a Request for Proposal (RFP) in 2018 seeking to expand the suppliers that supported our MRO program. At that time, Wilmar was identified as a program that brought greater value to our member base, however, HPN Select was still promoting both the HD Supply and Wilmar programs to our members.
Ultimately, moving forward with Wilmar as an exclusive MRO provider offers the most valuable solution to members of HPN Select. Wilmar recognizes the strategic value of our exclusive partnership and has supplied a very favorable contract proposal with enhanced terms to assist each member with the transition.
What to Expect from HPN Select and Wilmar
Working closely with Wilmar, HPN Select will oversee the hand off of vendor operations from HD Supply. Transition management will include creating and maintaining a solid communication plan with the Wilmar team, the member organization, and HPN Select. Additionally, the transition includes, but is not limited to, service level implementation, attaining set milestones, and completion of all deliverables.
When complications arise, HPN Select will work with Wilmar and the Shareholder to identify where miscommunications or missed steps occurred; moving quickly to identify the source of the complication and taking decisive action to keep the transition on track.
When Will the Transition Take Place?
While strategic planning sessions and contract negotiations started in December 2018, the official timeline for full deployment to Wilmar begins March 1, 2019. HPN Select is currently working behind the scenes planning the transition, and any Wilmar spend that is transferred prior to March 1, 2019 will still be included in the new MRO program.
To promote a speedy transition, Wilmar has agreed to pay each member of HPN Select a 1% rebate during the migration year for all spend that goes through the HPN Select – Wilmar partnership. The 1% rebate will be in effect from March 1, 2019 through February 29, 2020.
How Will the Transition Work?
On Friday February 8th, HPN Select will reach out to HD Supply communicating our decision to allow our contract to expire effective Thursday, February 28, 2019.
HPN Select will execute an amendment to the existing Wilmar contract agreement sometime in February accepting the “deal” points that have been agreed to by the Board of Managers and Shareholders. Through a Board resolution, a decision has been made to start the process of switching from HD Supply to Wilmar effective immediately.
HPN Select is prepared to swiftly transition all HPN Select members to the Wilmar program. Please reach out to either Chris Frederick or me to begin the transition process.
Features and Benefits of the Wilmar (The Home Depot) Program
Wilmar, through partnering with The Home Depot, has developed a robust distribution network that is competitive and comparable to HD Supply. Wilmar is actively adding even more distribution centers and Home Depot stores to further enhance their distribution network. Wilmar’s solution offers free delivery on all orders throughout the United States.
Wilmar and HPN Select have jointly been reviewing thousands of SKU’s against the current HD Supply program. Discounts average at roughly twice as much as the offering from HD Supply. The Wilmar catalog discounts are tiered based on the size of each customer. Greater discounts are offered for renovations and capital improvement projects.
Wilmar has a department dedicated to renovations and capital improvements projects named Renovations Plus. Following a complete understanding of the project, the organization is offered a dedicated Project Manager and there will be dedicated inventory for each individual project to ensure project efficiency.
Over the next several weeks, the HPN Select team will contact each member to ensure a seamless transition to the Wilmar program. Your cooperation and active participation during this time is greatly appreciated to ensure the most efficient transition.
If you have any questions or need clarification, please reach out to either Chris Frederick or me.
Mark Vernon, President HPN Select
617-874-0283 – email@example.com
Chris Frederick, Procurement Director
919-817-9058 – firstname.lastname@example.org