WESCO International, Inc. (NYSE:WCC) Q4 2022 Earnings Call Transcript

John Engel: So think it is digital transformation, it’s a great question as a continuum. When we put these two companies together, I will remind everyone, that was one of the major strategic rationales for putting these companies together. None of us in the distribution portion of the value chain could invest in digital fast enough. We put the two companies together. We established strong aggressive targets on synergies. It allowed us to improve our core profitability. We have been over delivering and beating and raising those, but we have been taking some of that overdriving investing in our digital transformation. We will bring the three-year integration program to a close at the end of 2023. But we have got another couple of years left on this digital transformation and that is what I am most excited about.

It really is all about unlocking the power of our big data. Again, we are already seeing some tremendous examples of that and we will — again it’s on our road map to bring that to life more for you going forward and establishing these KPIs and reporting against that. Excellent question. Thank you.

Christopher Glynn: Sounds great, John. Thanks.

John Engel: Yeah.

Operator: Today’s last question comes from Chris Dankert with Loop Capital. Please go ahead.

Chris Dankert: Hey. Good morning, guys. Thanks for fitting me in here.

John Engel: Yeah. Good morning.

Chris Dankert: Just to kind of clarify on the guide, you said expect a fairly seasonal pattern to the year. I assume that that kind of means any benefit from Infrastructure and Jobs Act or Inflation Reduction Act spending kind of pushing you to the market, that would be kind of incremental upside to what you are contemplating today?

John Engel: Yes. Short answer.

Chris Dankert: Perfect. Short and sweet.

John Engel: Yeah. I mean, yeah, I think, the secular trends are in place, we think they are enduring they are long-term and we are seeing increased contribution from them. But honestly, it’s our leading value proposition, taking advantage of those is what we are really seeing the effect that result in our sales. But to your point and we didn’t talk much about it, Dave did allude to it though. That — when you really look at that starting to unveil itself and deploy through the value chain, that could be substantial upside, absolutely.

Chris Dankert: Perfect. Perfect. And just very quickly, again, just to build up the last question, I guess. I know we are waiting on the KPIs, but when I think about maybe the earlier gross margin initiatives that started rolling years ago, the supplier segmentation stratification kind of pushing cost visibility to the sales force. How do you feel about some of those initiatives that have a little bit more maturity to them at this point?