'Double coverage' for key accounts
By Industrial Distribution Staff -- Industrial Distribution, 1/1/2000
When Federal Mogul Corp. opened its power train plant in Manitowoc, Wis., 18 years ago, Tool Service Corp. got in the door to supply abrasives and cutting tools.Today Tool Service has become the plant's largest MRO distributor.
"They're our biggest supplier because they've been proactive. They continue to work with us in a partnership," says Pat Woodkey, purchasing agent at Federal Mogul. "I don't believe we've ever gone through a period with them where they've said the current specification you have now is good enough. We're continually testing in different areas."
Being innovative and developing product expertise in tandem with their suppliers' representatives are key strengths of the 52-year-old company. Based in Milwaukee, the third generation, family-owned firm also has a division in Rockford, Ill. called Rock Valley Industrial Supply. It also shares common ownership with two affiliated companies, one that designs and builds cutting tools and another that provides fluid management and disposal services for cutting fluids.
"Our comfort level is to work with engineered products in the abrasives area," including both coated, bonded and diamond coated products, says president Lisa Mauer, whose grandfather founded the business.
Abrasives make up about 35 percent of the company's volume, compared to 40 percent for cutting tools and related products. Tool Service has ISO-9002 certification and emphasizes training salespeople at both supplier-sponsored schools and weekly internal product meetings. By continually training outside salespeople, Tool Service develops what Mauer calls "almost double coverage" for key accounts along with a manufacturer's salesperson.
"Our people in the field work well -- they do a tag team but also work very well independently on each other's behalf," she says of suppliers' and her own outside sales forces. For example, both sides may share and alternate roles to secure a product test order, conduct the test and then present results.
"That helps us go after a large market segment with our highly technical people and with theirs," says Rick Nowlin, manager of industrial distribution and marketing at manufacturer Norton Co. "They go by market, not just accounts," he says.
The advanced skills of Tool Service's 21 outside salespeople and product specialists also enable suppliers to go out and win more accounts, says Brian Logsdon, vice president of tool service.
Federal Mogul's Woodkey says the distributor frequently runs trial projects at his 650-employee plant, such as testing new coolants with abrasives or grinding wheels. In one recent case, he says introducing ceramic grains proved successful for side grinding piston rings -- providing much longer tool life.
"They come in, they troubleshoot when there are problems, but more importantly they help beforehand," says Woodkey. "If there's a new bond, or a new grain or a new combination; it isn't very much after [the introduction] that we're trying it here in house."
Tool Service also provides consignment and other commodity management services covering groups of products for large plants, and recently began offering management services for small businesses.
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