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Distributor's Program Cuts Costs, Improves Deliveries

September 24, 2001
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Quality Quotient
Sometimes putting all your eggs in one basket can be a really good thing. Just ask the folks at Wacker Silicones Corp.

Seegott Inc. distributes products and manages inventory from its network of public and company-owned warehouses.
Sometimes putting all your eggs in one basket can be a really good thing. Just ask the folks at Wacker Silicones Corp., Adrian, Mich. Last year, Wacker Silicones trimmed its national distributor network from 15 companies to one, Seegott Inc., Streetsboro, Ohio. Realizing immediate cost and service benefits from a single point of contact and accountability, Wacker Silicones now is placing more eggs in the Seegott basket.

Ted Davlantes, who manages Wacker Silicones' distribution in North America as well as the company's Process-To-Customer initiative, said the silicone supplier now is utilizing Seegott's new Outsourcing Solutions business, which was launched in March 2001, to trim its public warehouses to one-third the number and consolidate its logistics planning, cut costs and improve delivery.

"We decided to piggyback on Seegott's logistics expertise and strong network of 20 warehouses throughout North America because it adds significant value to our company and clients," Davlantes said. "Our core competency is silicone technology, not warehousing and logistics." Seegott Outsourcing Solutions can help manage inventory, ensure expedited shipments and help cut costs while boosting revenues.

According to Paul Seegott, president of Seegott Inc., "Michael P. Costello, a seasoned executive with more than 20 years of experience in operations and logistics, is spearheading our recent expansion to provide third-party logistics, sampling, repackaging, order fulfillment and consulting services." Director of Seegott Outsourcing Solutions, Costello has spent the past 23 years involved in handling, planning and logistics, as well as engineering, production and operations, for market leaders such as Proctor & Gamble, Dial Corp., Lolmar Laboratories and GOJO Industries.

Service Improvements and Cost Savings

"The myriad of services we now provide, from sampling and repackaging to in-depth logistics studies, have spawned significant service improvements and delivered substantial cost savings to several of our valued principal partners," said Seegott. "

Costello said that most of Seegott's 60-plus principal partners, and many of its key clients, are in the same position Wacker Silicones was in a year ago. To service their major accounts, they are spending significant time and money trying to control inventory and activities at numerous public warehouses, when Seegott Inc. already has the infrastructure -- and clients' products -- in place.

Costello adds, "Seegott Inc. has developed a core competency distributing products and managing inventory from its network of public and company-owned warehouses. As the national distributor for Wacker, we were able to take advantage of the obvious synergies to improve the business picture for both partners. Seegott Outsourcing Solutions allows companies to turn over their sometimes headache- and cost-ridden logistics networks to a single point of contact with a support system uniquely committed to each customer, no matter the size of the account."

Sampling and Packaging Also Offered

"We call on Seegott Outsourcing Solutions to handle sampling and packaging for many of the same reasons some now are turning to Seegott to outsource their warehousing and logistics," said Tom Shea, BASF Colorants market development manager. "Seegott already has our products in warehouses that are close to the customer, and has the sampling and repackaging solutions and shipping expertise to provide our direct customers with expedited services."

Seegott Outsourcing Solutions already is handling warehousing and logistics for three principal partners, and will soon be providing another major principal with sampling and packaging services like it does for BASF Colorants.

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