Jefferies Jumps to Need2Buy

Electronic News, April 17, 2000 by Marie Eve Demers

Jim Jefferies has given up his job as vice president of worldwide marketing for Pioneer-Standard Electronics to join Need2Buy as its new president of Electronics Worldwide.

Since its launching in May of last year, Internet company Need2Buy has been busy--from the expanding of its business to Asia to the appointment of new personnel. In the latter arena, the company has announced five nominations so far this year, including William Cacciatore, whose resume includes various executive positions with distribution powerhouse Avnet Inc. and the presidency of Richey Electronics (which he sold to Arrow Electronics in 1998).

Jefferies, who was first approached by Maury Friedman, Need2Buy's chairman and chief executive officer, said he feels very comfortable in joining a somewhat uncharted business area. "I am a very entrepreneurial person," he said. "I have been involved in a number of undertakings over my career, most recently with Pioneer, where I have helped open the Southern California marketplace, restructure the marketing organization, and open the worldwide market. These are the types of challenges that I like."

Jefferies' experience at Pioneer-Standard, the fourth largest distribution company in America, is gold for Need2Buy. His past role as vice president of worldwide marketing involved leading the company's global e-commerce initiatives as well as developing relationships with suppliers. He was also vice president of North American marketing and vice president of Pioneer's Southwest region during his tenure with the company.

In Jefferies' view, Need2Buy has what it takes to survive the consolidation period that analysts anticipate in the business-to-business (B2B) arena and become the future B2B part procurement reference. "I felt that Need2Buy has probably the most dynamic program [of all B2B electronics e-commerce companies]. The idea of leading that program as the president is very interesting to me," he said.

Need2Buy's portal is designed to link multiple supply chain partners, Jefferies explained. This results in the reduction of transaction cost and of ownership cost. But what makes the company different from the competition, he stressed, is Expert System, a tool that enables users to significantly reduce the cost of product searching and sourcing. The combination of Need2Buy's business model, the opportunity to build from the ground up, and the risk part inherent to any start-up appear to be an enticing combination for the former Pioneer executive. "Need2Buy is focused on creating trade partners with customers, suppliers, and distributors," explained Jefferies. "The company is about bringing a buyer and seller together and allowing them to apply across Need2Buy's Expert System and apply it through the supply chain to a number of trade partners."

But if leaving the relative security of a well-established company to venture in a young B2B e-commerce business seems like a risky change, many executives feel that the benefit surpasses the risks. Analyst Robert C. Damron, managing director at Tucker Anthony Cleary Gull, says that Jefferies' situation is not uncommon. "Over the last couple of years, we have seen many executives from the 'old economy' companies jump ships and take over top positions at Internet start-ups. Often, the motivation behind the change is the allure of stock options; private companies that can go public with a huge valuation. It is also a way for these executives to create value in a short period of time."

Jefferies was a well-respected top manager at Pioneer-Standard and had a great career with that company, Damron commented. Though it is never good for a company to see top managers leave, Damron believes that Pioneer has a very deep management team and that it will be able to fill Jefferies' shoes with others in the company. "I see Pioneer's prospects continuing to be bright," he said.