Serving Small Customers

Client

  • Large, public industrial materials supplier provides a wide variety of products to the automotive, appliance, container, industrial machinery, construction and oil and gas industries.

Challenge

  • Client’s domestic production was under performing past levels with no signs of improvement
  • Big customers were getting stronger
  • Management sought to change the game with an internet enabled business

Solution

  • Dispelled current myths about who customers are, feasibility of serving smaller customers, and customer use of the Internet
  • Used Internet to circumvent value chain and aggregate orders direct from end users
  • Funneled volume through selected distributors to squeeze inefficiencies out of supply chain
  • Shared savings with customers to encourage more direct orders
  • Used customer interactions to strengthen relationships
  • Leveraged stronger relationships into the sale of additional products and services
  • Designed and built a new standalone company to execute the new business

Client Results

  • Start up revenue exceeded $75 M in two years
  • Reduced dependency on supply chain
  • Established new customer driven, Internet enabled business