BY MITCH MAC DONALD, GROUP EDITORIAL DIRECTOR outbound
Swimming upstream
IT HAS OFTEN BEEN NOTED HERE THAT WHILE THE CON-trarian approach to business entails many risks, it is sometimes the
clearest path to success. The way companies responded to the Great
Recession is a case in point.
As the global economy plunged over the figurative cliff in
September 2008, many businesses hunkered down in survival mode,
cutting spending, hoarding cash, and generally keeping their heads
down. That strategy met with mixed results. While some weathered
the storm and are now regaining their footing, others weren’t so
lucky. The more they slashed costs, the worse things got, eventually
forcing them to shut down altogether.
Not everyone ran for cover when the storm hit,
however. A few contrarians decided to brave the elements and treat the downturn as a business opportunity. While others throttled back on investment,
these companies did just the opposite. They invested aggressively in facilities, systems, and equipment
to ensure they’d be well-positioned for growth
when the economic winds inevitably shifted. One
such company is Blackman Plumbing Supplies in
Bayport, N. Y.
During 2009, in the teeth of the recession,
Blackman, a wholesale plumbing distributor serving the New York metro area, embarked on a bold
two-year investment initiative. In the first year
alone, it upgraded its enterprise resource planning
(ERP) software, relocated its distribution operations to a building
with double the capacity of the previous site, and installed a new
warehouse management system (WMS).
That was three major projects in one year—a lot to tackle in boom
times, and all the more impressive given the chaos taking place in the
market. But the plumbing supplier never looked back. “Without
change there would be no progress,” said Dave Connelly, Blackman’s
director of purchasing, in a press release detailing the initiative.
And Blackman wasn’t done yet. As the calendar turned to 2010, the
company marched forward with further investments. In addition to
completing the largest acquisition in its 89-year history, Blackman
revamped its delivery fleet operations and installed a new transportation management system (TMS).
As a result, the company today has both the technologies and
processes in place to meet even the most aggressive customer service
goals, says René Jones of Burbank, Calif.-based Total Logistics
Solutions Inc., a firm Blackman engaged to help
guide it through the transition. Material is
received and put away within 48 hours of deliv-
ery by the vendor. Orders are now picked with
radio-frequency devices. And with the system’s
command center, the movement of every order
can be tracked throughout the facility in real
time. On top of that, every delivery truck is mon-
itored through a GPS system so the customer
knows exactly when its order will arrive.
Group Editorial Director
