January 2003 Happy New Year and welcome to the January edition of SEDA's electronic newsletter, containing latest news on industry and association activities, articles of interest to safety equipment distributors and manufacturers, and links to other sources of news and information. All articles are archived in the Members Only section of the SEDA website, www.safetycentral.org. To access the Members Only section, enter -member- at the User I.D. prompt, and -protect- at the Password prompt. Let us know what you think of Safety Scene Online. Send your comments or article ideas to Steve King, Executive Director, at steve@ksgroup.org.

Table of Contents Feature Article SEDA Partners with Inventory Network to Offer Solutions for Dead Stock Problems Slow moving inventory and dead stock have plagued distributors for years. Attempts to remedy the problem have come and gone with little success—until now. SEDA has partnered with Inventory Network, a solution provider exclusively serving the safety equipment industry. Find out how this new service can help solve your dead stock and overstock problems. SEDA Association News New for 2003—Sales Training Seminar—What is the Future of the Distributor Sales Force? In the last decade, the sales force has been buffeted by the winds of change just as severely as the rest of the distributor business. The typical distributor sales executive understands that something must be done with the sales force, but few know what to do or where to begin. On Tuesday, March 18, SEDA is offering an online seminar from Dave Kahle that offers insightful analysis of the forces causing change and recommendations for executive who want to manage that change. QSSP—Your Best Source for Technical and Regulatory Sales Training The Qualified Safety Sales Professional Course is entering its ninth year of providing outstanding safety and health technical and regulatory training to safety sales professionals. Each session is updated to include the latest changes to federal regulations and the 2003 sessions will include discussion of homeland security issues. Don't let another year go by without giving your sales and marketing personnel the training they need to be more effective solution providers to your customers. University of Industrial Distribution—Focused on the I.D. Industry The University of Industrial Distribution is a concentrated educational program focused on the unique needs of the industrial wholesale distribution industry. Known worldwide for excellence in education, UID is sponsored by the leading industrial distribution associations, including SEDA. Only one UID session will be held in 2003—March 2-5, at the University of Alabama at Birmingham. Find out why you should attend this outstanding training opportunity. SEDA Welcomes Two New Affiliate Members SEDA is pleased to welcome two new manufacturers as members—New Horizons Ltd. and Hazmatshower.com. Get details on both new members. Technology Panda Provides Affordable E-Commerce Solutions to SEDA Members For many years now, SEDA members have turned to Panda Communications to provide printed catalogs. Panda's catalogs are a great value and the Panda team's expertise takes the hassle out of what can be a very difficult process for most distributors. Now, Panda has expanded their offerings to SEDA members in include easy-to-use e-commerce solutions. Find out how you can build your own custom eSafety Store with Panda Communications. 2003 Distribution Software Guide Now Available SEDA is once again providing the Distribution Software Guide to members. Renamed the "Solutions Guide", the publication is the most comprehensive yet, with information on 20 enterprise software packages as well as a new section on data collection and warehouse management. Financial Trends And Advice Key Financial Trends in Distribution Profit Planning Group has prepared a special report for SEDA members comparing the financial results of safety equipment distributors with those from an aggregation of forty distribution trade associations. See how the safety industry stacks up in return on assets, gross margin percentage and five other indices. Are You Leaving $160,000 On the Table? Is everyone in you firm involved in improving profitability? This article by Dr. Al Bates looks at the profits given up when firms fail to work collectively toward becoming a high-profit firm, and what selected management actions can be taken to improve profitability. SEDA Tax Advisory The Internal Revenue Service has given wholesaler-distributors a valuable new tool to attack the high cost of employee health insurance. The IRS recently issued guidance that clarifies the favorable tax treatment of a "health reimbursement arrangement" (HRA), which is funded by the employer and reimburses an employee for out-of-pocket medical expenses up to a specified dollar amount per year.