Material Handling BIZ
Providing Tactics to Outpace Your Competition.

July 2004

Making OEM Remarketing Work

Solid Relationships Make Vertical Markets Work
Selling to an OEM seems counter productive. Many times millions of dollars are invested in research and development all culminating in a product. Why allow another company to sell your product?

An OEM stands for "Original Equipment Manufacturer." This refers to a company that produces a product to be marketed under another company's brand name.

The term is really a misnomer because OEMs are not the original manufacturers -- they are the customizers. For example, if Sony makes a monitor that will marketed by Dell, a "Dell" label will get stuck on the front, but the OEM of the monitor is Sony. Learn why this practice pays off!

Many times selling to an OEM is the right decision because it is the OEM’s special relationship that will be used to penetrate a market or client. Whether or not the manufacturer allows sole distribution rights to the OEM the burden of developing and implementing a marketing and sales strategy is bore by the OEM not the manufacturer.

Variations on this marketing tactic also exist. Other manufactures sign distribution rights to their branded product to another company. The best example if this is Hewlett Packard’s strategy of allowing mass merchandisers like CompUSA to distribute HP’s product to business clients.

Morrison Company uses OEM relationships to penetrate unique markets and clients. An experienced Account Manager is assigned and assists the OEM in developing strategies, attends sales meetings, and id requested makes joint client visits.

OEM’s interested in discovering how Morrison Company’s marketing program can work for you can request an information packet. Place "OEM" as the area of interest.



You Do That?

Modular Offices Adaptable to Many Applications
Change is constant. The business world today almost mandates planning that is adaptable to change. As organizations react to market conditions re-tooling, reorganizing or relocating strategies are pursued to defend market share. Are you considering a reconfiguration or expansion of your facilities?

Has flexibility been added to your organization’s set of requirements? Many times a manufactured room can be the right solution for you. Modular systems can accommodate virtually any design and are easily modified for relocation and additions. Have you looked at a modular room lately? Wall heights can be as tall as 40ft and wall thickness can be configured to 6 inches. Adding a mezzanine can accommodate multiple levels. Put pencil to paper – you might be surprised to discover that a modular system saves you money.

The best example of a surprising ROI is with a fully- assembled modular system providing you with complete building versatility and substantial savings in construction costs. Simply forklift the system into place and connect to a power supply. You eliminate the costs for onsite labor and the coordination of various trades – plus, accelerated capital equipment depreciation may apply. If you need to move or relocate the building, simply disconnect the utilities and forklift to a new location. It’s just that simple.

System Benefits (partial list):
  • Customize floor plans to meet your exact requirements.

  • Maintenance-free anodized aluminum components provide superior durability compared to rust-prone steel component systems.

  • Optional panel finishes include: vinyl covered drywall, fiberglass reinforced plastic, painted steel, embossed anodized aluminum, and acoustical carpet or fabric.
Are you curious about the ROI on your next project? Click here to request a personalized evaluation of your needs including a ROI comparison.


How Are Your Listening Skills?

The following article is submitted by Sedlak—providing independent, client-focused supply chain consulting services. Find out more at www.jasedlak.com.
“Hey, I’m listening,” you say confidently. But, are you really?

No matter what your job, if you’re like most, you could use listening skill improvement. Along the way, you’ll probably enhance not only your own status but also that of your organization.

According to a few experts, listening effectively is the ultimate strategic advantage for a business. Not surprisingly, top sales professionals say listening is the key to successful selling. Perhaps proving their case, a quick search on Google for sites that link “listening” with “sales” provided 1,810,000 sites.

One company in the listening education business measures the following to determine one’s listening skill level: memory, open-mindedness, respect, empathy, attention and response. Most of us are fairly proficient in remembering what we hear. In order to improve the ability in the other categories, try listening quietly, avoiding direct questions and arguments about facts, restating what you are hearing, and trying to understand the feeling the person is expressing. Most difficult of all, listen for what is not said.

To test your skills, find a friend willing to help you improve your listening skills. Ask him or her to cut from the newspaper a short and meaningful feature article. Listen carefully as your friend reads the article aloud and then give feedback—addressing all the categories mentioned above. Then listen carefully to your friend’s feedback on how well you listened! Good luck.



Has the Recovery Impacted Your Business?

Up Tick in Demand for Material Handling Solutions Growing
The Council of Economic Advisors report corporate profits increased in a year over year comparison by 32%. June’s PMI provided by the Institute for Supply Management has seen its 13th straight month of growth. Has any of this news escaped your business? It seems that all aspects of the material handling industry is seeing signs of not just recovery, but optimism is growing.

The good news continues. Morgan Stanley's Truckload Freight Index continues to sit at record high levels (the index measures incremental supply and demand and provides data covering the last 10 years). This is despite the fact the peak-shipping season is over two months away. What are you finding?

Railroads have been the traditional relief valve when capacity is tight in the truckload market; however, the railroads face significant demand increases in four of their five major commodity groups.

Just as the baseball season is heating up, so is almost every indicator of growth. The June and July issues of most trade magazines report growth. Hoist magazine indicates despite steel surcharge order volume up compared to one year ago.

Cranes magazine reports mergers are up as the market responds by consolidating supply to effectively meet increased demand for products.

If your business is not seeing a real indication of growth what can be done?

Success begins by being intentional. Begin by deciding whom you want for customers. This decision, based on a long-term sales approach, will drive you to ask questions about what value does your company deliver. Significant improvement will come after your sales organization understands that every encounter with your prospect and customer is important in demonstrating your organization’s value.

Sending a consistent message will, in time, encourage customers to respond with their trust. Orders follow.

In the August issue one company will be highlighted that has demonstrated this and other principles for over 75 years. Want an advance copy so you can get ahead of your competition, click here!



Industry in Turmoil Seeks Stability

Retail Drug Industry Counts on Morrison Company
The recent sale of Eckerd’s to CVS and Brooks has the pundits in the retail drug industry counting competitors versus pills. This sale has reshaped and shifted the leadership within the industry from Walgreens to CVS.

While the industry waits to see the shake out, it’s business as usual for these retail drug leaders. Over the past 20 years, Morrison Company has completed projects for over 30 distribution centers for Walgreens, CVS, Discount Drug Mart, and Bindley Western (now known as Cardinal Health). Additionally, six facilities are being completed for the giant drug wholesaler AmerisourceBergen. Why have so many heavily regulated firms with complex product lines turned to Morrison Company?

Even before the first truckloads of material arrive at the client facility, Morrison Company’s design engineers verified that their design has the necessary approvals from local building inspectors. Their engineered design has been the culmination of effort from a support cast of engineers from the multitude of suppliers and the clients’ facility planning firm.

Although each project is unique, all of them required the integration of many material-handling solutions using pallet rack, flow systems, mezzanines, shelving, and conveyor support systems. “With the average size of a Walgreens’ facility of 750,000 square foot, each project feels like we’re building a city,” indicates Jim Green – President of Morrison Company. What makes these projects significant is the coordination between the client, their building contractor, the design engineering team and the project management staff at Morrison Company. “A project of this scale will require our involvement for over one year, ordering, scheduling and installing material from over 150 complete truckloads,” said Mr. Green.

Whether for clients like Walgreens or CVS, managing the details is no small task. The AmeriSourceBergen projects have their own challenges. Each facility contains 250,000 square foot of highly regulated material. Morrison Company not only works to insure the material is erected on schedule but they must await the evaluation of FDA inspectors. The typical AmeriSourceBergen engagement is six months.

Ensuring the flow of material into the facility from day to day is the role of the Site Manager and the project management team. A choreographed ballet adequately describes the effort put forth by the project management team. Team participants include: Morrison Company design engineers, site manager, and installation crews; factory representatives, local building inspectors, general contractors, and the client’s project manager.

Do your plans include the expansion, consolidation or a new distribution center? Ask for details of how Morrison Company's integrated handling solutions can positively impact your logistics goals.



EEOC Hiring Update

Equal Opportunity Hiring is More Than Being Nice
Statues from Title VI of the Civil Rights Act to the Age Discrimination in Employment Act prohibit workplace discrimination and harassment. That means all levels of management must know the laws and understand them. But understanding the law won’t keep you out of court; you need to put the right policies in place.

EEOC complaints have mounted with double digit increases each year since 2000. As dramatic as this trend, so to is the success rate of the EEOC when combating employers. Almost 90% of cases that go to trial are decided in favor of the EEOC carrying an average award of $250,000.

Are your policies in place and in practice? Discover five ways to comply.

What follows should be treated as mandates not suggestions:

  • Treat everyone with dignity and respect. Steer clear of personal attacks or derogatory remarks. Treat your staff members, as you would want to be treated. If you are no longer impressed with their performance, reassign them or fire them. You’re not doing yourself or your company by having them around and resenting it.

  • Treat everybody equally and fairly. Keep in mind every time you make an exception to the rule it becomes precedent. Letting someone who has violated company policy off without any consequences undermines your other employee’s morale.

  • Keep good records. Noting the time, date, and details of any significant event or discussion will provide a history to base your case. In addition documentation of incidents like altercations could provide valuable support for your defense if the staff member lodges a complaint.

  • Respond appropriately. For every employee who complains there are 10 others who are grumbling. Maintain a sense of compassion and empathy even though you may not have been bothered by the event that an employee brings up to you. Consult your company’s code of professional conduct. If you don’t have one prepare one.

  • Investigate and document. No matter how trivial the matter may appear to you, investigate all issues and document the incident. Very often it’s the staff member who feels that the manager brushed off his or her grievance who seeks legal recourse.
Need additional resources? Click here to obtain a copy of EEOC tips.
© 2003 Morrison Company. All Rights Reserved.