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