Richard Trombly, Business and Technology Writer

Wellman, Inc. manufactures and markets high-quality polyester products and is the world's largest PET (polyethylene terephthalate) plastic recycler. In 1997, Wellman, Inc. opened a new location in Bay St. Louis, Miss. During the construction, it relied upon Turner Supply Co. for many of its general industrial needs, says Wellman purchasing superintendent Lori A. Harper.

"After the plant opened, we selected another distributor that we thought would better fit our needs," says Harper. "Turner Supply stayed in touch and let us know if we ever needed them, they would be there."

According to Harper, the other company couldn't supply the inventory Well-man needed. She says Turner stepped in and offered to buy the on-site inventory and take on the supply agreement.

"Turner was selected as a key alliance partner and now supplies about 75 percent of our mill supplies," says Harper. "They meet the majority of our requirements, are very helpful, have recommended savings and really work with their customers to determine their needs. We consider Turner a key member of our team."

Super regional

Through several acquisitions in the last year, Turner Supply Co. has expanded rapidly to include 13 locations, 290,000 sq. ft. of total warehouse space holding nearly $8 million in inventory, and 175 employees. Turner, whose territory encompasses Alabama, Mississippi, Northwest Florida, Central Tennessee and Southwest Georgia, with Mobile and Birmingham serving as distribution centers, uses the term "super regional" to describe itself.

Turner Supply Co. coordinates all of its locations from its central office in Mobile, Ala., where it has been based since it was founded by Marshall Turner in 1905. Howard M. Schramm, Jr., Turner's grand-nephew, is the current president. Following in his father's footsteps, Schramm is the third president of the 96 year old company.

"I think one of the most important things is that we have a long heritage," says Schramm. "To be around that long says something positive. We are a conservative company but we stay on top of the modern technology and trends."

Turner Supply has seen many changes. It originally supplied sawmills, railways, machine shops, and general industry. As Mobile's economy changed to pulp, paper, fiber, and chemicals, Turner evolved to accommodate the needs of local industry.

One way it has done this is through specializing in belting. Turner carries extensive inventory and can vulcanize to custom sizes. A mobile unit can vulcanize custom belting on the spot.

In the 70's, Turner began to expand, starting with its first branch in Pensacola, Fla., in 1973. Laurel, Miss., and Dothan, Ala., followed in 1976 and 1977, respectively.

"My father's strategy was different," says Schramm. "He didn't want to open branches because he wanted to keep a personal level of service,"

Schramm says he felt the need to expand so that Turner had the critical mass to be taken seriously by larger customers. Turner has managed to expand while maintaining a high level of personal service, says Schramm. He says that's why Turner has expanded to contiguous areas and maintained Mobile as its base.

"We view ourselves as problem solvers," says Schramm. "Many times the customer doesn't know exactly what he needs or isn't aware that a solution is available. A catalog house can't help them the way we do."

He says that's an advantage Turner has over many larger national companies. Turner can maintain a close relationship and has specialists to provide technical support.

"While most larger distributors are template-driven, we tailor ourselves to the customer," says vice president of sales Tommy Thompson. "Much of our success, especially in integrated supply, has come from documenting our cost savings, and much of that cost savings comes from knowing our customer. That is what being a super regional distributor is all about."

Thompson cites as an example a customer who uses cobalt ingots in a chemical process to extract a by-product. The cobalt, which was left coated with this byproduct, was treated as scrap. The customer considered sandblasting but found it impractical because of the abrasive waste. Turner found a blaster using dry ice, which sublimates and leaves no waste. Thompson says this saves the company $250,000 per year in cobalt purchases.

Integrated solutions

"The challenge," says Schramm, "is to keep everything coordinated and consistent."

To accomplish that end, Schramm credits the use of technology solutions. From telephone and fax to EDI and the Internet, Turner is enabled to rapidly service its customers.

"We were early adopters of integrated supply," says Schramm. "It started with 'system contracts' in the 1950's. To maintain these contracts we need a level of service that surpasses the national firms."

Schramm also credits the centralized computer network to which all the branches are connected. The mainframe in Mobile operates customized distribution software, which he says allows all of Turner's branches to operate in concert. This successful program has been marketed to other distributors, says Schramm.

Turner also maintains its own fleet of delivery trucks at each location so it is able to control the delivery of supplies to its customers and can assure the fastest delivery service, says Schramm.

"Our commitment has allowed Turner to enter into many sole source, integrated supply, and vendor managed inventory agreements," says Thompson.

This commitment to integrated supply has led to the program known as Turner Partnership Solutions, which focuses on the implementation of these programs. According to Schramm, efficiency and service have led to Turner managing not only inventory, but the entire procurement process at a number of customers' plants.

Cutting edge service

"Turner has carried their responsibility with a high degree of excellence," says Charles King, procurement manager, Sappi Fine Paper, North America. "Their role is an extension of procurement and includes monitoring blanket orders. The sales representative spends a lot of time interacting with the users and ensures that there are minimal errors in purchasing."

King says the relationship reduces procurement time significantly and it empowers workers to be able to requisition standard items without waiting for approval through the conventional procurement channels.

High customer service and documented savings are extensions of Carboloy's way of business, says Paul Kieta, manager of distribution and business development for Seco/Carboloy. When Carboloy was looking to expand its business into Southern Alabama, says Kieta, it found that Turner shares a similar philosophy.

"We view distribution as a channel partner in servicing the true end user," says Kieta. "It helps both businesses make sure our actions positively impact all partners."

Kieta says Turner serves different market segments in different geographical areas but understands the customers and the varied products they need.

"They have invested in specialists to support cutting tool lines," says Kieta. "That is important and unusual in a general line house."

As Turner expands, Carboloy grows with them, says Kieta.

"When we understand a distributor and they understand and work with us," says Kieta, "it's a great combination."
Norton Co. of Worcester, Mass., has enjoyed a productive relationship with Turner for 80 years, says Bob Gardiner, director of marketing and distribution.

"Turner has been very proactive in accessing their market," says Gardiner. "It is good to see an old-style distributor has found a way to compete in its region with other regional and national firms."

Gardiner says Turner distinguishes itself by having a broad product line while still maintaining the resources for

in-depth technical support

Turner's positive reputation has been a boon in gaining supply contracts but it has also helped to gain and retain employees. Schramm says that over the years Turner has had 65 employees put in 25 years of service or more. They have also had employees come to them from other parts of the industry.

According to vice president of marketing Bruce Reagan, maintaining a high reputation is more important than ever. Attracting the right employees is an important aspect of that effort, he says.

"We need a different type of salesperson today," says Reagan. "Not just one who knows the product, but one who is very computer literate and can perform higher-level selling. In integrated supply, it is common to sell not only on the floor or to the procurement department but also to high-level executives."

Acquiring a reputation

It was also Turner's reputation that brought about the first of three acquisitions in 2000, when it purchased Parrish-Keith-Simmons, says now Turner vice president, Nashville region, Scott Parrish. A long-time champion of the small independent distributor and incoming I.D.A. president, Parrish met Schramm at an I.D.A. meeting in the fall of 1999 and they began to discuss the possibilities.

"I believe that the small distributor needs to develop a niche to survive," says Parrish. "I was operating a general-line distributorship and, though I was developing a niche, welcomed an opportunity to remain in the general line supply business, which is my expertise."

Parrish says it was important to find an opportunity like Turner where there was a shared philosophy and such a high level of service. He says he has gained the resources of Turner while retaining relative freedom to service his customers in his usual manner.

"The only change was better trained employees, more choice for the customer, and a more efficient back-end process," says Parrish.

Thompson says that to assimilate an acquisition it is first necessary to foster an "open door policy" with the new employees.

"Our first goal is to try and remove any fears and anxiety that may exist with our new employees," says Thompson. "At the same time, we concentrate our efforts on making the transition seamless to our customers."

Thompson says another key ingredient to the process is training.

"We provide immediate training for new employees as it relates to processes, procedures, and policies," says Thompson. "This usually entails sending trainers as part of an ongoing process."

In July 2000 Turner acquired Young & Vann Supply Co. which was nearly half the size of Turner.

Schramm says Young & Vann's business was similar to Turner's. "I was very familiar with their business," said Schramm "and I went to the University of Alabama Law School with William Vann."

"We realized that for Young & Vann, the choice was acquire or be acquired," says Jim Johnson, vice president Young & Vann division. "I had reservations when [William Vann] contacted our number one competitor, Turner Supply."

Johnson says that from the first meeting, Turner met with Young & Vann on common ground. He adds that the transition has been smoother than anticipated.

"The reactions of all of our customers have been positive," says Johnson. "Turner addressed the employees' concerns and retained most of the employees."

Bobby Hopper, key accounts manager, cited similar reasons for approaching Turner about acquiring Hopper Hardware.

"I knew their reputation, and I knew how Turner handled the Parrish-Keith-Simmons acquisition" says Hopper. "I called [Schramm] for that reason."

Hopper says he was amazed at the speed and efficiency of the transaction, which occurred in October 2000, as well as how easily his eight employees meshed with Turner's business.
Schramm says the most difficult part of these acquisitions was loading all of their information onto the computer system.

Will Turner Supply Co. enter a fourth generation as a family-owned business? Schramm says both of his children have worked at Turner Supply during school vacations. He has encouraged his children to work hard, and though they are on other career paths at the moment, he doesn't rule out their following tradition and taking over the business one day.


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© Copyright Richard Trombly 2003