Tom Branna, Editorial Director 08.03.15
When you want something done right, do it yourself. But in the highly complex world of household and personal care ingredient sourcing, trying to go it alone may be a mistake for raw material suppliers. If your client base includes everything from startups to multinationals, logistics can be a nightmare; after all, it’s one thing to get a tank car of tall oil to New Jersey, but how do you get that pail of potassium to Podunk?
Distributors make the task much easier; plus, they offer a wide array of services including formulation help and regulatory advice to get production going and product flowing to consumers.
No wonder why the segment is growing. According to Univar and other industry observers, historically, 20-30% of raw materials sold into the household and personal products industry go through distribution—although this value may vary depending on dollar value, pounds and other factors.
“This is the case specifically in the specialty ingredients area where volumes are low and importance to personal and household care customers is high,” explained Kelly Gilroy, senior director, personal and household/industrial care, Univar.
“We expect the number to continue to grow as more suppliers leverage the strength of Univar, so they can focus on what they do best—manufacture and innovate.”
Distributors’ capabilities have expanded as manufacturers’ view of distribution has changed significantly over the years, say industry observers.
“In the past, a chemical distributor was viewed as a vehicle to reach opportunities that were beyond available resources of the producer or were in markets where distribution had inherent strength due to value added services,” explained Jim Ormiston, director, care chemicals, Brenntag North America.
At one time, most distributors were regionally based entities with limited geographical or market scope. But with the consolidation of the chemical distribution industry during the past 30 years, along with the chemical manufacturers’ focus moving from market share to portfolio management, the chemical distributor role has moved from one of a general outlet for sales to a strategic extension of an overall go to market strategy.
“What you’re seeing now is a more market-facing approach among chemical manufacturers with clear distribution strategies,” said Ormiston. “Selection of distribution outlets has gone from geographical to one where focus is on individual market segments and the resources available at the customer level.”
To facilitate these changes, Brenntag North America has developed focused industry teams per market segment that are staffed with technically-trained individuals who know the markets they service, stay on top of technology and trends and, most of all, speak the customer’s language.
“We have made significant investment in both individuals as well as support mechanisms such as our formulation laboratories for personal care, food and nutrition, and coatings, which afford us the opportunity to spotlight our manufacturing partners’ technology through finished sample products as well as formulation support,” explained Ormiston.
Logistics, Logistics
First and foremost, the right distributor can make sure that raw materials get to the right place, at the right time and to the right person.
“Manufacturers are looking to simplify their supply chain,” explained Tim Consiglio, business manager, Pride Solvents, a distributor in the Northeast and Mid-Atlantic regions of the US. “Raw material suppliers rely on distributors to handle drum and tote orders. They don’t want the hard costs such as LTL freight associated with smaller orders.”
As a result, Pride and other distributors often service thousands of customers, yet they ensure rapid, economical delivery.
“We provide next-day deliver to any customer in our geographic area. We own and operate our own trucks, drivers and warehouses; if you call us today, you’ll have it tomorrow,” he said.
That’s a similar message from other distributors. Lincoln Fine Ingredients’ specialty is a national outreach with multiple stocking locations, according to Walter Martish III, president.
“[We provide] hands-on bench chemistry with a vast array of specialty products that is supported by our innovation center. We have the ability to custom fill pails, drums and totes for specific needs,” said Martish.
Raw material sourcing is still the main driver with contract manufacturers, noted Tom Keech, senior formulation chemist, RITA Corp, adding that price point, lead times, and quality are all vital components in the distributer/manufacturer relationship.
“Our advantage at RITA, is that we supply a very extensive list of chemicals used across many different industries,” said Keech. “This is both efficient and convenient for manufacturers instead of sourcing from multiple places.”
Vantage offers a wide array of specialty, basic and naturally derived ingredient solutions including jojoba and derivatives, acne solution actives, encapsulation technologies and green chemistries, according to Alison Drzewinski, marketing associate.
“For our customers and suppliers alike, we provide full service support with our account managers, customer service reps, formulation and lab services team and marketing team,” she explained. “Our extensive supply chain reaches around the globe, and we have offices in 13 countries.”
Brenntag offers superior service to the customer, including local sales and customer service, warehousing and logistical support, according to Ormiston.
“With our dense network, we are, in many cases, located in the same communities as the finished products manufacturer,” he noted.
As a result, Brenntag can provide the customer with a single point of contact affording the formulator options among a broad number of product lines and manufacturers.
“These gains in efficiency provides the manufacturer more time to focus on innovation and growing its business not to mention reducing complexity which reduces cost,” Ormiston added.
Many distributors boast of their extensive network; in these instances, bigger is better and getting bigger is better still. Just last month Univar announced the acquisition of Chemical Associates, a marketer, manufacturer and distributor of a wide range of raw materials, including oleochemicals, tall oil fatty acids, oleic acids and stearic acids. The move makes Univar more responsive to the market’s needs.
“We apply a unique, multi-pronged approach within the household and personal products industry. First, we have a team of technical specialists dedicated to supporting the sales team. They provide the guidance on market insight, trends, and innovations occurring across the dynamic market. Second, we have a specialized (technical) sales team dedicated to servicing only these markets. This allows us to apply a consultative approach to formulation requirements. Third, our direct sales team weaves best practices across other markets into this industry, which keeps our approach to both suppliers and customers unique and evolving,” explained Gilroy. “The specialized and general teams create a powerful approach to superior service – when and where you need it. Finally, our R&D centers provide the sales, technical team and suppliers the collaborative opportunity to develop new technologies that keep our customers competitive in their market space. This approach, when coupled with the strength of our exceptional network, creates the total solution where both our customers and suppliers gain value.”
Brenntag has several strategic manufacturing partners in the household and personal care industry. Brenntag North America specializes in functional ingredients, minerals and pigments and personal care actives. It provides a complete portfolio of industrial and specialty chemicals that cover a vast array of applications including surfactants, solvents and disinfectants,
explained Ormiston.
“(We) provide the customer a number of options from a single point source to accommodate their formulation needs,” he added.
Solid Support System
Of course, the best distributors offer much more than logistical advantages. Those who are worth their salt know their stuff as well. Centerchem, for example, offers a wide range of high quality, active ingredients, specialties and technologies from many sources. But there are more benefits to working with the company, according Jon Packer, company president.
“We have affiliations with universities and many research partners,” he explained. “We are deeply knowledgeable about our materials’ functionality and activity, marketing trends, application and incorporation into finished formulations, regulatory issues and more broadly the greater industry both in North America and in many of the world markets.”
Centerchem, added Packer, is well-versed to work with a customer’s finished product profiles, recommending specific ingredients or combinations of ingredients.
“We routinely do application work on our materials and clinical studies—at times on a custom basis for selected customers,” he explained.
From time to time, Centerchem enters into special arrangements to develop custom specialties; such as blends, complexes, delivery systems and encapsulates. This work may include demonstrating the efficacy of specific combinations of materials or the value of enhanced delivery (such as higher efficacy or similar efficacy at reduced use levels).
Formulation help is available from other distributors, too.
“Lincoln Fine Ingredients’ innovation center, in conjunction with its sister company, Lincoln Manufacturing a manufacturer of specialty preservatives, offers a vast array of technologies, finished prototypes and problem solving while being expeditious,” explained Martish.
At Lincoln Fine Ingredients, formulation is supported by the innovation center. Pipeline management is supported by multiple stocking locations throughout North America with minimum order quantities. The end result is that the company has the agility to bring innovation from prototype to launch, according to Martish.
Formulation help is also an ever-expanding area that manufacturers can utilize at RITA, too. According to Keech, it has become an integral part of the customer relationship.
“Our R&D works closely with our sales team to help bridge the gap between a manufacturer’s R&D group,” he said. “We strive to stay ahead of innovation and new formula concepts by consistently presenting our capabilities to customers.”
At RITA, this means customizing formula prototypes and even incorporating marketing concepts to best display the full story and performance of the formulas.
“The R&D group here at RITA is easily accessible with all customers, and this is something we take pride in by always welcoming questions, comments, and continuing to build on these partnerships,” Keech added.
Finished product manufacturers are looking for help from a variety of functions within a supplier’s organization, noted Drzewinski.
“They are looking for trusted supply, market intelligence, formulation assistance, and regulatory documentation and support,” she observed. “ We compile trend reports and tie them back into our ingredient offering, along with formulations to match.
With a unique marketing approach, Vantage executives insist they provide real value and drive customer brand loyalty through formulation, technology and marketing expertise to customers around the globe, as well as additional technical information and claim substantiation for many of its products. Vantage also has a designated team for prototype creation and formulation support.
“In Latin America, we have had a very strong presence, with eight offices in Mexico, Brazil, Costa Rica, Argentina, Colombia, Chile, Guatemala and Peru, and have been able to develop strong customer relationships as a result,” explained Bruno Manzano, marketing manager, Latin America. “ We began opening offices in Latin America in 1991 through 2001 while the market was still developing and have been at the forefront of supplying materials to the region. With Vantage, we understand the market, and customize our marketing efforts for each local culture.”
Problem Solvers
Of all the issues impacting global household and personal product formulations, ever-changing regulations seem to cause the biggest headaches for finished product formulators. But if they’re working with the right distributors, chemists are much more likely to reach for the phone instead of the aspirin.
“We’ve been in business for 40 years and during that time, environmental issues and changing regulations have had the biggest impact on the industry,” said Consiglio. “ They are more restrictive, more encompassing and very involved.”
As a result, Pride Solvents handles plenty of regulatory and environmental requests from its customers who, in turn, get plenty of questions from end consumers who want answers about a range of questions; from “are your products tested on animals?” to “are there partially hydrogenated oils in your products?”
“I must get three or four questions every week,” asserted Consiglio.
Pride Solvents can answer all of a customer’s questions, because the staff gets trained by the raw material supplier and brings that knowledge to the end formulator.
“We act as a technical seller, so that the raw material supplier doesn’t have to handle each and every customer request,” explained Consiglio.\
RITA, too, has the answers that its customers seek.
“Regulatory help is always present with customers,” insisted Keech, who noted that there could be registration of chemicals, safety requirements, and countless forms that need to be completed on individual raw materials as well as full finished formulas.
“There are also the increasing safety standards for materials, and this is something at RITA that we are continually monitoring and staying current with,” he added.
Working with Centerchem guarantees the highest possible level of customer service on a fast turnaround basis, according to Packer. Centerchem assures supply of samples on a rapid basis, helps develop creative combinations of materials and technologies to help formulators build the best possible finished products, maintains ample commercial stocks of locally inventoried raw materials, provides regulatory and formulation support, and troubleshoots when problems arise in the product development process or special customer needs arise.
“With Centerchem, our customers have a true partner they have found they can rely on after many years of our being a part of the personal care products industry.”
Centerchem stays on top of these requirements by having in-house regulatory capability, investing in basic research, claim substantiation, product development and other areas of specialty development, including custom complexes, delivery systems, and molecular and physical encapsulates, according to Packer.
For its part, Lincoln Fine Ingredients works diligently with customers, suppliers and consultants to continue to meet these global regulatory demands, according to Martish.
KODA’s customers are facing fierce competition driven by today’s highly dynamic and diverse consumer base, according to Julia Hernandez, VP-marketing. “We focus on the R&D formulator to provide both technical and marketing support with the ultimate goal to help our customers build superior competitive advantage by creating innovative concepts and going to market fast,” she said, adding that market trends analysis, starting formulations, and technical and regulatory support are key to influence KODA’s customers’ position in the marketplace.
Trust and Transparency
But regulatory help is just one characteristic of a good supplier-distributor relationship. For example, Martish explained that a successful distributor offers true transparency that is supported by innovation with multiple manufacturing facilities with a global presence.
“Some of our supplier relationships have lasted more than 30 years and continue to this day,” he told Happi.
Trust is a key component of any customer relationship. To achieve this, Brenntag looks beyond individual transactions and focuses on establishing long term strategic goals and objectives for growth to include resource allocation, training, consistent communication and transparency, according to Ormiston.
“We as the distributor are a strategic extension of a chemical manufacturer’s go-to market strategy,” he explained. “Both parties must be aligned in terms of expectations and set metrics to assure mutual success as well as address deficiencies. In today’s challenging market environment it is vital the manufacturer aligns with the distributor who best represents its industry approach and the distributor do the same.”
Trust and transparency are critical in the supplier-distributor relationship, agreed Packer of Centerchem.
“We have found the most effective supplier/distributor relationships are those that function as true partnerships with the common, primary goal to best serve the needs of customers,” he told Happi. Centerchem, for example, routinely provides valuable input from the marketplace or shares insights as to market trends and new development opportunities.
“It is not unusual for joint calls to be made to selected accounts from time to time,” he added.
A strong technical background can keep relationships thriving for years.
“We have 12 full-time account managers most of whom have hands-on experience in a wide variety of disciplines,” said Consiglio. “We can help customers with formulation issues and the newest technologies.”
According to Hernandez, KODA’s differentiator lies on the marketing of specialty chemicals through a team of highly technical professionals with a strong business background, combined with deep market expertise relevant to consumer demand and market trends to support our customers’ product development process from ideation to commercial launch.
“As a distributor, we are a fundamental player on our suppliers’ go-to-market strategy,” she told Happi. “Transparency is vital to build sustainable, long-term supplier relationships. This includes alignment of strategic planning and execution, R&D pipeline visibility and price stewardship.”
Of course, a good supplier-distributor relationship requires input from both sides, noted Drzewinski.
“In some ways, it’s similar to a supplier-customer relationship where you want to ensure on time deliveries, competitive pricing and added services, as well as manufacturing responsibility, strong supply chain communication and interlocking marketing efforts.”
She added that is also crucial to ensure transparency in regards to information availability for market intelligence and regulatory support.
Univar’s relationships within the personal and household care, and industrial and institutional markets are built on trust and professionalism, according to Gilroy.
To maintain that partnership, Univar incorporates the following items to sustain a valued partnership:
• Service a mutually agreed upon area of the market based on capabilities and resources with each supplier.
• Maintain transparency and regular communication of business intelligence and pre-defined metrics throughout the relationship.
• Approach each and every customer with a solution best suited to its unique chemistry requirements. “Generally, a supplier presents a solution solely from their perspective and seeks to solve it with their chemistry,” observed Gilroy. “We often suggest multiple chemistries and formulation options to solve formulation problems, helping our customers select the optimal solution. This is known as our unbiased approach to customer needs.”
• Fully disclose opportunities and challenges each strategic supplier relationship may encounter, as well as how the relationship realistically aligns/benefits the household and personal products industry.
• Jointly develop market-driven innovation for continual improvement.
“From CEO and sales, to warehouse managers and procurement, we build and maintain multi-level relationships with all suppliers, nurture relationships, and utilize engagement schedules,” explained Gilroy. “Trust is the most important part of all relationship, and the supplier-distributor relationship is no different.”
KODA Care offers increased value-added services, strategic geographic concentration, and the expertise to meet varying regional needs that the chemical producer could only accomplish through a very complex logistics network, according to Hernandez.
“Our value proposition is highly relevant to the specific needs of our customer base, which is predominantly medium and small size manufacturers.”
RITA specializes in meeting the needs of its customers by maintaining a vast product catalog backed by a full service formulation lab, and has experience in the sales and service of a broad array of cosmetic raw materials, explained Keech.
“In this day and age it is relatively easy for a finished product manufacturer to source just about any product, but typically the deciding factors when choosing a supplier come down to relationships and service,” noted Keech. “As not only a distributor, but also a manufacturer, we understand both sides of the coin.”
According to Keech, RITA’s focus on customer relationships and high quality, responsive service that makes it stand out. Another key component is forming strategic partnerships.
“Working collaboratively, we believe, is critical to the future success of our customers,” he said. “And we strive to offer consistently high levels of service to exceed customer expectations.”
That’s something that every consumer product company strives for these days.
Distributors make the task much easier; plus, they offer a wide array of services including formulation help and regulatory advice to get production going and product flowing to consumers.
No wonder why the segment is growing. According to Univar and other industry observers, historically, 20-30% of raw materials sold into the household and personal products industry go through distribution—although this value may vary depending on dollar value, pounds and other factors.
“This is the case specifically in the specialty ingredients area where volumes are low and importance to personal and household care customers is high,” explained Kelly Gilroy, senior director, personal and household/industrial care, Univar.
“We expect the number to continue to grow as more suppliers leverage the strength of Univar, so they can focus on what they do best—manufacture and innovate.”
Distributors’ capabilities have expanded as manufacturers’ view of distribution has changed significantly over the years, say industry observers.
“In the past, a chemical distributor was viewed as a vehicle to reach opportunities that were beyond available resources of the producer or were in markets where distribution had inherent strength due to value added services,” explained Jim Ormiston, director, care chemicals, Brenntag North America.
At one time, most distributors were regionally based entities with limited geographical or market scope. But with the consolidation of the chemical distribution industry during the past 30 years, along with the chemical manufacturers’ focus moving from market share to portfolio management, the chemical distributor role has moved from one of a general outlet for sales to a strategic extension of an overall go to market strategy.
“What you’re seeing now is a more market-facing approach among chemical manufacturers with clear distribution strategies,” said Ormiston. “Selection of distribution outlets has gone from geographical to one where focus is on individual market segments and the resources available at the customer level.”
To facilitate these changes, Brenntag North America has developed focused industry teams per market segment that are staffed with technically-trained individuals who know the markets they service, stay on top of technology and trends and, most of all, speak the customer’s language.
“We have made significant investment in both individuals as well as support mechanisms such as our formulation laboratories for personal care, food and nutrition, and coatings, which afford us the opportunity to spotlight our manufacturing partners’ technology through finished sample products as well as formulation support,” explained Ormiston.
Logistics, Logistics
First and foremost, the right distributor can make sure that raw materials get to the right place, at the right time and to the right person.
“Manufacturers are looking to simplify their supply chain,” explained Tim Consiglio, business manager, Pride Solvents, a distributor in the Northeast and Mid-Atlantic regions of the US. “Raw material suppliers rely on distributors to handle drum and tote orders. They don’t want the hard costs such as LTL freight associated with smaller orders.”
As a result, Pride and other distributors often service thousands of customers, yet they ensure rapid, economical delivery.
“We provide next-day deliver to any customer in our geographic area. We own and operate our own trucks, drivers and warehouses; if you call us today, you’ll have it tomorrow,” he said.
That’s a similar message from other distributors. Lincoln Fine Ingredients’ specialty is a national outreach with multiple stocking locations, according to Walter Martish III, president.
“[We provide] hands-on bench chemistry with a vast array of specialty products that is supported by our innovation center. We have the ability to custom fill pails, drums and totes for specific needs,” said Martish.
Raw material sourcing is still the main driver with contract manufacturers, noted Tom Keech, senior formulation chemist, RITA Corp, adding that price point, lead times, and quality are all vital components in the distributer/manufacturer relationship.
“Our advantage at RITA, is that we supply a very extensive list of chemicals used across many different industries,” said Keech. “This is both efficient and convenient for manufacturers instead of sourcing from multiple places.”
Vantage offers a wide array of specialty, basic and naturally derived ingredient solutions including jojoba and derivatives, acne solution actives, encapsulation technologies and green chemistries, according to Alison Drzewinski, marketing associate.
“For our customers and suppliers alike, we provide full service support with our account managers, customer service reps, formulation and lab services team and marketing team,” she explained. “Our extensive supply chain reaches around the globe, and we have offices in 13 countries.”
Brenntag offers superior service to the customer, including local sales and customer service, warehousing and logistical support, according to Ormiston.
“With our dense network, we are, in many cases, located in the same communities as the finished products manufacturer,” he noted.
As a result, Brenntag can provide the customer with a single point of contact affording the formulator options among a broad number of product lines and manufacturers.
“These gains in efficiency provides the manufacturer more time to focus on innovation and growing its business not to mention reducing complexity which reduces cost,” Ormiston added.
Many distributors boast of their extensive network; in these instances, bigger is better and getting bigger is better still. Just last month Univar announced the acquisition of Chemical Associates, a marketer, manufacturer and distributor of a wide range of raw materials, including oleochemicals, tall oil fatty acids, oleic acids and stearic acids. The move makes Univar more responsive to the market’s needs.
“We apply a unique, multi-pronged approach within the household and personal products industry. First, we have a team of technical specialists dedicated to supporting the sales team. They provide the guidance on market insight, trends, and innovations occurring across the dynamic market. Second, we have a specialized (technical) sales team dedicated to servicing only these markets. This allows us to apply a consultative approach to formulation requirements. Third, our direct sales team weaves best practices across other markets into this industry, which keeps our approach to both suppliers and customers unique and evolving,” explained Gilroy. “The specialized and general teams create a powerful approach to superior service – when and where you need it. Finally, our R&D centers provide the sales, technical team and suppliers the collaborative opportunity to develop new technologies that keep our customers competitive in their market space. This approach, when coupled with the strength of our exceptional network, creates the total solution where both our customers and suppliers gain value.”
Brenntag has several strategic manufacturing partners in the household and personal care industry. Brenntag North America specializes in functional ingredients, minerals and pigments and personal care actives. It provides a complete portfolio of industrial and specialty chemicals that cover a vast array of applications including surfactants, solvents and disinfectants,
explained Ormiston.
“(We) provide the customer a number of options from a single point source to accommodate their formulation needs,” he added.
Solid Support System
Of course, the best distributors offer much more than logistical advantages. Those who are worth their salt know their stuff as well. Centerchem, for example, offers a wide range of high quality, active ingredients, specialties and technologies from many sources. But there are more benefits to working with the company, according Jon Packer, company president.
“We have affiliations with universities and many research partners,” he explained. “We are deeply knowledgeable about our materials’ functionality and activity, marketing trends, application and incorporation into finished formulations, regulatory issues and more broadly the greater industry both in North America and in many of the world markets.”
Centerchem, added Packer, is well-versed to work with a customer’s finished product profiles, recommending specific ingredients or combinations of ingredients.
“We routinely do application work on our materials and clinical studies—at times on a custom basis for selected customers,” he explained.
From time to time, Centerchem enters into special arrangements to develop custom specialties; such as blends, complexes, delivery systems and encapsulates. This work may include demonstrating the efficacy of specific combinations of materials or the value of enhanced delivery (such as higher efficacy or similar efficacy at reduced use levels).
Formulation help is available from other distributors, too.
“Lincoln Fine Ingredients’ innovation center, in conjunction with its sister company, Lincoln Manufacturing a manufacturer of specialty preservatives, offers a vast array of technologies, finished prototypes and problem solving while being expeditious,” explained Martish.
At Lincoln Fine Ingredients, formulation is supported by the innovation center. Pipeline management is supported by multiple stocking locations throughout North America with minimum order quantities. The end result is that the company has the agility to bring innovation from prototype to launch, according to Martish.
Formulation help is also an ever-expanding area that manufacturers can utilize at RITA, too. According to Keech, it has become an integral part of the customer relationship.
“Our R&D works closely with our sales team to help bridge the gap between a manufacturer’s R&D group,” he said. “We strive to stay ahead of innovation and new formula concepts by consistently presenting our capabilities to customers.”
At RITA, this means customizing formula prototypes and even incorporating marketing concepts to best display the full story and performance of the formulas.
“The R&D group here at RITA is easily accessible with all customers, and this is something we take pride in by always welcoming questions, comments, and continuing to build on these partnerships,” Keech added.
Finished product manufacturers are looking for help from a variety of functions within a supplier’s organization, noted Drzewinski.
“They are looking for trusted supply, market intelligence, formulation assistance, and regulatory documentation and support,” she observed. “ We compile trend reports and tie them back into our ingredient offering, along with formulations to match.
With a unique marketing approach, Vantage executives insist they provide real value and drive customer brand loyalty through formulation, technology and marketing expertise to customers around the globe, as well as additional technical information and claim substantiation for many of its products. Vantage also has a designated team for prototype creation and formulation support.
“In Latin America, we have had a very strong presence, with eight offices in Mexico, Brazil, Costa Rica, Argentina, Colombia, Chile, Guatemala and Peru, and have been able to develop strong customer relationships as a result,” explained Bruno Manzano, marketing manager, Latin America. “ We began opening offices in Latin America in 1991 through 2001 while the market was still developing and have been at the forefront of supplying materials to the region. With Vantage, we understand the market, and customize our marketing efforts for each local culture.”
Problem Solvers
Of all the issues impacting global household and personal product formulations, ever-changing regulations seem to cause the biggest headaches for finished product formulators. But if they’re working with the right distributors, chemists are much more likely to reach for the phone instead of the aspirin.
“We’ve been in business for 40 years and during that time, environmental issues and changing regulations have had the biggest impact on the industry,” said Consiglio. “ They are more restrictive, more encompassing and very involved.”
As a result, Pride Solvents handles plenty of regulatory and environmental requests from its customers who, in turn, get plenty of questions from end consumers who want answers about a range of questions; from “are your products tested on animals?” to “are there partially hydrogenated oils in your products?”
“I must get three or four questions every week,” asserted Consiglio.
Pride Solvents can answer all of a customer’s questions, because the staff gets trained by the raw material supplier and brings that knowledge to the end formulator.
“We act as a technical seller, so that the raw material supplier doesn’t have to handle each and every customer request,” explained Consiglio.\
RITA, too, has the answers that its customers seek.
“Regulatory help is always present with customers,” insisted Keech, who noted that there could be registration of chemicals, safety requirements, and countless forms that need to be completed on individual raw materials as well as full finished formulas.
“There are also the increasing safety standards for materials, and this is something at RITA that we are continually monitoring and staying current with,” he added.
Working with Centerchem guarantees the highest possible level of customer service on a fast turnaround basis, according to Packer. Centerchem assures supply of samples on a rapid basis, helps develop creative combinations of materials and technologies to help formulators build the best possible finished products, maintains ample commercial stocks of locally inventoried raw materials, provides regulatory and formulation support, and troubleshoots when problems arise in the product development process or special customer needs arise.
“With Centerchem, our customers have a true partner they have found they can rely on after many years of our being a part of the personal care products industry.”
Centerchem stays on top of these requirements by having in-house regulatory capability, investing in basic research, claim substantiation, product development and other areas of specialty development, including custom complexes, delivery systems, and molecular and physical encapsulates, according to Packer.
For its part, Lincoln Fine Ingredients works diligently with customers, suppliers and consultants to continue to meet these global regulatory demands, according to Martish.
KODA’s customers are facing fierce competition driven by today’s highly dynamic and diverse consumer base, according to Julia Hernandez, VP-marketing. “We focus on the R&D formulator to provide both technical and marketing support with the ultimate goal to help our customers build superior competitive advantage by creating innovative concepts and going to market fast,” she said, adding that market trends analysis, starting formulations, and technical and regulatory support are key to influence KODA’s customers’ position in the marketplace.
Trust and Transparency
But regulatory help is just one characteristic of a good supplier-distributor relationship. For example, Martish explained that a successful distributor offers true transparency that is supported by innovation with multiple manufacturing facilities with a global presence.
“Some of our supplier relationships have lasted more than 30 years and continue to this day,” he told Happi.
Trust is a key component of any customer relationship. To achieve this, Brenntag looks beyond individual transactions and focuses on establishing long term strategic goals and objectives for growth to include resource allocation, training, consistent communication and transparency, according to Ormiston.
“We as the distributor are a strategic extension of a chemical manufacturer’s go-to market strategy,” he explained. “Both parties must be aligned in terms of expectations and set metrics to assure mutual success as well as address deficiencies. In today’s challenging market environment it is vital the manufacturer aligns with the distributor who best represents its industry approach and the distributor do the same.”
Trust and transparency are critical in the supplier-distributor relationship, agreed Packer of Centerchem.
“We have found the most effective supplier/distributor relationships are those that function as true partnerships with the common, primary goal to best serve the needs of customers,” he told Happi. Centerchem, for example, routinely provides valuable input from the marketplace or shares insights as to market trends and new development opportunities.
“It is not unusual for joint calls to be made to selected accounts from time to time,” he added.
A strong technical background can keep relationships thriving for years.
“We have 12 full-time account managers most of whom have hands-on experience in a wide variety of disciplines,” said Consiglio. “We can help customers with formulation issues and the newest technologies.”
According to Hernandez, KODA’s differentiator lies on the marketing of specialty chemicals through a team of highly technical professionals with a strong business background, combined with deep market expertise relevant to consumer demand and market trends to support our customers’ product development process from ideation to commercial launch.
“As a distributor, we are a fundamental player on our suppliers’ go-to-market strategy,” she told Happi. “Transparency is vital to build sustainable, long-term supplier relationships. This includes alignment of strategic planning and execution, R&D pipeline visibility and price stewardship.”
Of course, a good supplier-distributor relationship requires input from both sides, noted Drzewinski.
“In some ways, it’s similar to a supplier-customer relationship where you want to ensure on time deliveries, competitive pricing and added services, as well as manufacturing responsibility, strong supply chain communication and interlocking marketing efforts.”
She added that is also crucial to ensure transparency in regards to information availability for market intelligence and regulatory support.
Univar’s relationships within the personal and household care, and industrial and institutional markets are built on trust and professionalism, according to Gilroy.
To maintain that partnership, Univar incorporates the following items to sustain a valued partnership:
• Service a mutually agreed upon area of the market based on capabilities and resources with each supplier.
• Maintain transparency and regular communication of business intelligence and pre-defined metrics throughout the relationship.
• Approach each and every customer with a solution best suited to its unique chemistry requirements. “Generally, a supplier presents a solution solely from their perspective and seeks to solve it with their chemistry,” observed Gilroy. “We often suggest multiple chemistries and formulation options to solve formulation problems, helping our customers select the optimal solution. This is known as our unbiased approach to customer needs.”
• Fully disclose opportunities and challenges each strategic supplier relationship may encounter, as well as how the relationship realistically aligns/benefits the household and personal products industry.
• Jointly develop market-driven innovation for continual improvement.
“From CEO and sales, to warehouse managers and procurement, we build and maintain multi-level relationships with all suppliers, nurture relationships, and utilize engagement schedules,” explained Gilroy. “Trust is the most important part of all relationship, and the supplier-distributor relationship is no different.”
KODA Care offers increased value-added services, strategic geographic concentration, and the expertise to meet varying regional needs that the chemical producer could only accomplish through a very complex logistics network, according to Hernandez.
“Our value proposition is highly relevant to the specific needs of our customer base, which is predominantly medium and small size manufacturers.”
RITA specializes in meeting the needs of its customers by maintaining a vast product catalog backed by a full service formulation lab, and has experience in the sales and service of a broad array of cosmetic raw materials, explained Keech.
“In this day and age it is relatively easy for a finished product manufacturer to source just about any product, but typically the deciding factors when choosing a supplier come down to relationships and service,” noted Keech. “As not only a distributor, but also a manufacturer, we understand both sides of the coin.”
According to Keech, RITA’s focus on customer relationships and high quality, responsive service that makes it stand out. Another key component is forming strategic partnerships.
“Working collaboratively, we believe, is critical to the future success of our customers,” he said. “And we strive to offer consistently high levels of service to exceed customer expectations.”
That’s something that every consumer product company strives for these days.