Ramminger Urges Redoubling of Work at PM Distributor Summit AWMA President Scott Ramminger urged the redoubling of efforts to improve the PM distributor program and identify supply chain efficiencies between Philip Morris and its distributors in a speech made on Wednesday, prior to the official opening of the REAL DEAL EXPO, Addressing the Philip Morris Distributor Summit, a meeting held by PM with its direct distributors at the Hard Rock Hotel, Ramminger said that while progress had been made toward improving communication between PM and its distributors, a great deal of work remained to be done. "Both PM and its distributors face enormous challenges as we move into the future. We are selling a product that is highly taxed and a magnet for litigation. The market for the product is slowly declining. "It doesn’t take a rocket scientist to figure out that improvements to operating efficiency are a key to maintaining or improving profits in such a situation. I feel confident in saying that the distributors in this room understand that. "But we are truly all in this together. And not all of the operating efficiencies and cost cutting can come at the expense of the distributor. Distributors need to maintain their profitability in order to effectively serve PM. It’s that simple," Ramminger said. Listing a series of meetings between PM and the AWMA Industry Affairs Committee, PM’s participation in the ABX meetings at AWMA’s Distribution Summit, and the PM Summits in Dallas and Las Vegas, Ramminger said the company deserved credit for "what I believe is a very sincere effort to improve the lines of communication with its distributors." Still, he added, "most distributors have the same complaints about the 2005 PM distributor program that they did about the 2004 program. Topping the list is the virtual elimination of the returned goods policy." "Before this meeting, a number of distributors called me to ask whether they should attend. ‘What is it going to accomplish?’ is what a number of them asked. I told each of them unequivocally that they should attend the meeting and stand up and voice their concerns. We will never solve the problems that we face together if we don’t keep talking." Ramminger told the group that a focus group session planned for the afternoon offered an excellent chance to begin the real work of making tangible improvements to the PM program and finding supply chain efficiencies. He suggested that notes from these sessions be distributed and that three or four items should be selected for work by task forces of distributors and PM Executives. Making significant change is like moving a heavy boulder, Ramminger said. "Sometimes you have to rock the thing back and forth for a while before it really starts moving," he added. "We have started rocking the boulder, now we need to hunker down, put our shoulders into it, and really get it moving." For more information on attending the 2007 AWMA REAL DEAL EXPO, contact customer service at either 800-564-4220 or 703-449-6418 or awmaregistration@jspargo.com