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 Distributor Dialogue Coastal Pet Products Makes a Clean Sweep By Steve King Executive Vice President, Pet Industry Distributors Association
“The purpose of any awards program is to recognize outstanding achievement and to encourage others to emulate the actions of award winners,” says Mark Cavanaugh of Central Garden & Pet Supply and cochairman of PIDA’s Awards Committee. “PIDA modified the awards last year to recognize manufacturers for policies and practices that are distributor friendly.” PIDA’s revamped awards program recognizes manufacturers in four key areas: • Sales staff and field support • Retail support at independent pet outlets • Order fulfillment and customer service • Overall distributor relationship The manufacturer who receives the most votes in all categories combined is named PIDA’s Supplier of the Year. When asked to rate manufacturers’ performance in 2003, PIDA members were nearly unanimous. Coastal Pet Products of Alliance, Ohio was voted the top manufacturer in all four categories, making them PIDA’s 2003 Supplier of the Year. “We really appreciate the awards because we feel that they recognize our entire effort,” says Jim Stout, president and CEO of Coastal Pet Products. “From our field sales staff, to our distributor support team, to our marketing team, to our operations and inside order personnel, we work hard to do what is best for our customers.” Coastal received their awards at PIDA’s Management Conference and 36th Annual Meeting held in January in Tucson, AZ. Here’s how they measured up in each of the categories. Sales Staff/Field Support The award for sales staff and field support recognizes the manufacturer whose sales staff consistently offers superior support to distributors in areas such as sales calls with distributor buyers, ride-alongs, training, accessibility, providing information and prompt follow-up. “We have a very focused sales staff,” Stout says. “We use independent reps to sell our products. We require them to call on distributors and work with distributors’ people in the field.” Coastal also has company employees living in each of its sales regions to work with the independent reps. They’ll work in distributor sales meetings and discuss product, and they’ll do ride-alongs as much as possible. Coastal also encourages its reps to work in the field independently as well. That business gets directed back to the distributors. When it comes to sales in the 21st century, Stout realizes it’s a new ballgame. “The old school of thought was that we’d introduce a new product to the distributors. Then we’d allow them to go out into the field and sell it,” he recalls. “Due to the number of skus they have and the demands on the distributor sales force, the burden of introducing products to the market has come more to the manufacturer.” Coastal introduces new products into the market through trade advertising, direct mail, by working with distributor reps and by working independently. “We recognize that the burden has shifted to us. We’ve taken on that responsibility and we’ve worked hard at it,” Stout says. Retail Support at Independent Pet Outlets The award for retail support recognizes a high level of support through things such as dealer promotions, road shows, advertising, merchandising and training. Coastal excels in each of these areas. “We work with dealer promotions and offer our support with graphics, signage and merchandising tools,” Stout says. “We’re one of the stronger trade advertisers in the market as well. We consistently run ads to build and maintain awareness of new and existing products.” Coastal’s products include Coastal nylon collars and leads, Circle T leather products, Titan chain products and the Safari grooming line. “We offer training aids for all of these products,” Stout says. “We really focus on supporting the independent retailer and sending them back through distribution.” Order Fulfillment & Customer Service The award for order fulfillment and customer service recognizes the processes that help products flow through the distribution channel effectively and efficiently. These include on-time delivery, fill rate, packaging, customer support and returns. Stout is proud of Coastal’s day-to-day operations staff who are responsible for these areas. “We’ve always focused on on-time delivery. It’s been one of the priorities of the company,” Stout says. “Last year, we added a radio frequency shipping system. Shipping is a very high priority for us. We focus on getting the product out the door as soon as possible.” Coastal realizes that the faster distributors can turn product, the less inventory they need to keep and the more profitable they can be. So Coastal keeps a strong stock of finished goods to reduce delivery time (usually one to three days) and keep fill rates high. “Our fill rate is one of the best in the industry – up around 98 or 99 percent,” Stout says. “This is based on my philosophy that if you order it and get it, it’s very efficient. If you have to back order it or reorder it, it’s less efficient and, if you’re out of stock, you’ve lost a sale.” Coastal manufactures most of its products. They are able to create product rapidly to hold that fill rate. All of those products are bar coded and EDI compatible when shipped, which keeps them running smoothly through the distribution channel. Customer service is another key area of interest for distributors. Coastal’s commitment to service starts with the first phone call. “We have a live person answering the phone as opposed to an automated phone service. Our receptionist recognizes our regular customers and greets them when they call,” Stout says. “We also have account service coordinators for each region. No matter where you’re calling from, you will get the same person each time you call. It is easier for customers to work with someone they know on a regular basis.” When it comes to returns, Coastal tries to be fair. If damaged or misshipped goods are involved, the problem is taken care of immediately at Coastal’s expense. If there is an overstock or overpurchase issue, they will work with their customers to the best of their ability. Overall Distributor Relationship This award recognizes the manufacturer whose policies and practices best support the wholesaler-distributors’ role in the distribution channel. Coastal started working with wholesaler-distributors in 1968 and has remained committed to keeping distribution as part of its going to market philosophy. “I have always enjoyed working with distributors. It’s particularly fun now as we work with a second generation of many of these family-owned businesses,” Stout says. “We try to do what’s right for them. If we do that, in the long term, it will be right for us. It’s a real win-win situation.” When asked about distributor incentives, Stout said that Coastal has discounts based on volume and promotions based on carrying a full line and representing Coastal. They have programs for distributors’ key dealers that include Internet-based referrals. “The main incentive is that we offer quality products and fair and competitive prices and make operating in this category as seamless as possible so they can maximize their benefit with the least effort,” he says. “It’s a high-intensity, high-labor category, but it does carry profit for the distributor and for the customers in the channel.” A Vote of Confidence Stout says that Coastal Pet Products is delighted and honored to receive the PIDA awards. He views them as reassurance from his trading partners that Coastal is on the right track. “These awards confirm our company philosophy,” he says. “We’ve always had a strong philosophy to service consumers through the distribution channel. We look at this as a vote of confidence. We were doing these things because we thought they were the right things to do. These awards tell us that our customers agree.” Steve King has been executive vice president of PIDA since 1989, and has been involved in the pet industry for over 20 years. |
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