Author: Algood

Over the past few months as negotiators from the U.S., Canada and Mexico have been feverishly discussing the future of the North American Free Trade Agreement (NAFTA), I have been conducting business as usual speaking to and meeting with our many customers in the U.S. And my expectation is that whatever the outcome of the NAFTA negotiations, I will continue to meet the needs of our American distributors and manufacturers. You may think I’m naïve, but I believe I’m just being a realist and that over a century of friendship won’t be erased in the course of 6 months.

The truth is that the U.S. and Canada are likely the world’s strongest trading partners. In fact, Canada is America’s largest trading partner next to China. Notably, the U.S. and Canada are relatively equal trading partners. The U.S. overall trade deficit with Canada is only 2% or $11 billion. To put that in perspective, the U.S. trade deficit with China is a whopping 60%. Here’s another statistic to add some context to the depth of the trading relationship. The trade across the Ambassador Bridge, between Windsor, Ontario and Detroit, Michigan, alone is equal to all trade between the United States and Japan. In addition, the strength of the Canada-U.S. trading relationship is far from a new phenomenon. It has been in place for decades. While the trading relationship has been marked by all kinds of tariff and duty disputes, it has withstood the test of time.

Perhaps even more important than the financial benefits, the U.S.-Canada relationship is based on shared values. We take some of those for granted but our common respect for individual rights and a belief in democratic government create a powerful bond. Both countries foster and thrive on the competitive marketplace. In addition, there is a shared emphasis on worker health and safety as well as a growing awareness of the ecological impact of industry in both countries. I know that when I visit customers and colleagues in the U.S., these common beliefs pave the way to our business discussions.

The Canadian and American manufacturing sectors have a particularly strong connection forged in large part on the automotive industry. These days, manufacturers in both countries share a common interest in bring business back to North America. In fact, the reshoring movement is gaining traction as customers tire of long lead times and the uncertainty associated with overseas shipments. Greater emphasis on supplier agility means that inventories change over faster and customers are looking for the project focused shorter runs that can best be accommodated by manufacturers in Canada and the U.S.

Also, the physical closeness of the two counties can’t be discounted. That proximity creates opportunity with most goods being moved in a matter of days – and sometimes hours.

So for all of these reasons I remain optimistic. I can’t predict what the outcome of the NAFTA negotiations will be or whether NAFTA will even survive. However I am certain that, based on the strength of our time-tested relationship, our shared political and economic values and our common interest in the revival of the North American manufacturing sector, we will continue to do business and create opportunity with our customers, colleagues and suppliers in the U.S.

As this year winds down and we set our sights on 2018, I realize that I’m suffering from a condition that I haven’t experienced in a long time. It’s one that admittedly can have a pretty dramatic downside, but right now it feels damn good. I’m talking about EO – or extreme optimism – and let me put aside my wood-knocking superstitious side for long enough to tell why I believe 2018 will be a great year for Algood.

Really there are three reasons for this bright outlook.

1. The Economy is Very Healthy

Most economic indicators in Canada and the U.S. are strong and trending positively. Interest rates are still quite low and very stable. Not surprisingly then business investment in machinery and equipment is up significantly and unemployment rates are falling. GDP in both countries is growing. Markets are at all time highs as investors express their confidence. All of this is confirmed by what I see and hear when traveling to meet with our customers. It’s clear that businesses are investing significantly in new equipment and new technology – and that investment will have a positive ripple effect throughout 2018.

2. The North American Caster Industry is Strong

Here’s a statistic that ought make you sit up and take notice. According to the Reshoring Institute, through the first three quarters of 2017, approximately 180,000 jobs have been transitioned to the U.S from locations outside of North America. There are many strong economic factors driving that trend. My interactions with customers indicate that a major dynamic is that offshore production is subject to long lead times, making it harder to meet deadlines and tying up capital that could be used to improve local productivity. Customers are becoming increasingly demanding and simply won’t tolerate waiting months for product that may or may not match specs. In addition, a number of market segments experiencing significant growth are ones that use casters in their final products.

3. Algood is in a Very Good Place

As consolidation continues in the caster industry and caster products increasingly become a commodity, Algood’s craftsmanship and expertise become more valuable. It takes true CasterSmiths to really understand a customer’s needs and then design and create the product to meet business goals. Having a fully integrated manufacturing facility means that we can develop customized solutions while being nimble enough to meet deadlines and budgets. In addition, by putting the customer at the centre of everything we do, we are positioned to leverage our design and engineering capability, innovating and developing new products. In 2017, we introduced almost a dozen new products or configurations and that trend will continue into 2018. We will be investing in our own operation next year with increased automation, product development and a powerful new website.

So, there are my reasons for extreme optimism. I look forward to continuing to meet the needs of every one of our customers by offering unparalleled service combined with the wisdom and knowledge that comes with almost 50 years of success.

On behalf of the Guttmann families and all the staff at Algood, I wish all of our distributor partners, customers, suppliers, colleagues and friends a Happy Chanukah, Merry Christmas and a very Happy New Year which brings you much health and happiness.

Adding another robotic welding station to our plant has made us really think about automation.

Our approach to and experience with automation actually runs contrary to much of what you might be hearing in the news. First, automation has not reduced the number of people we employ. It has increased it. In addition, complete automation is not the be all and end all of manufacturing and is not, in any way, our goal. We are very aware that automation can dramatically change the nature of a business and have developed an automation plan ensuring that we continue to meet our customers’ needs and that we remain the kind of manufacturer we want to be.

We added our second robotic welding station for a number of reasons. The most obvious is that it adds to our capacity. Unquestionably we can now produce more casters – and get them out the door faster. We have also improved the quality of our casters because the automated process yields a better weld and does it consistently.

Interestingly, the robotic welder didn’t replace anyone or reduce the number of our employees. In fact, we hired an additional staff member to run the welder. In addition, we maintain our manual welding station that is manned by a full time licensed welder. That allows us to produce shorter run or custom manufactured items in a reasonable timeframe.

Our experience is that automation has necessitated hiring additional staff. As was the case with welding, automation often requires adding workers with very specialized skill sets. On top of that, our increased capacity leads to more sales and the need for more personnel in customer support and administration.

From a bigger picture perspective we’ve spent a lot of time thinking about how automated we want to be. While automation increases and stabilizes productivity, it also locks you in. The cost of automation can be astronomical and its return on investment can only be realized by producing large volumes of single SKUs. It’s a template-based process and that’s not the manufacturer we want to be.

Rather we ‘ve opted for a semi-automated strategy that allows us to be nimble and responsive. There are over two million caster configurations represented in our catalogue and it’s that ability to meet the precise needs of our customers that accounts for our success. As opposed to some suppliers who try to shoehorn customer requirements into the closest available product, at Algood we pride ourselves on producing casters that are an exact match to what our customers need. What’s more is that we can do that in very large quantities with delivery dates that outpace offshore and other fully automated producers. That creates a very unique value proposition for our customers.

It’s not that we’re dragging our feet on automation. It’s quite the contrary. We are well aware of what technology can offer our business and have been innovative in adopting it. But I have seen many suppliers become a victim of their own automation, transforming their business into something very different than they imagined.

Our considered approach to automation will allow us to stay true to our strengths and principles – and allow us to continue to use our expertise as castersmiths to meet the needs of our customers and the industry.

$601,000 is a lot of money. And while it has nothing to do with our sales or profit at Algood, it has everything to do with our bottom line. You see, if the only purpose in making money is to increase the value of a company or the wealth of its owners, we’ve missed the point. That’s why my brother and I, following in the footsteps of our father, just helped to raise $601,000 in support of special education programs for children in our community.

Over 25 years ago, my father became a supporter of educational programs for kids with special needs. It’s a cause that was very dear to my father and although none of his kids required any related services, he worked tirelessly and personally raised hundreds of thousands of dollars. When he died 19 years ago, we founded an annual golf tournament in his memory to make sure that his legacy of support lives on. While the tournament has grown and been transformed, the winner’s cup is still lovingly named in memory of my parents Max and Sheila.

There are hundreds of children in the community who learn differently than most other kids and they require additional resources, materials and expertise. It would cost individual schools hundreds of thousands of dollars to meet the needs of these children. The reality is that, on their own, the schools simply couldn’t meet that challenge and scores of children would be denied the future that education brings. It’s only with additional financial resources that these children will reach their goals and achieve success.

It’s tough to raise the money but we have done it to give back to the community and to invest in its children. Over the years the tournament has raised millions of dollars. And this year, we are so proud to have surpassed the amount raised in any previous year.

In addition to this initiative, Algood supports a whole range of causes including hospitals, healthcare organizations and schools.

For us at Algood, success isn’t just measured in profits. That’s because we’re not a corporate subdivision and our deep family values remind us that it’s what you do with profits that defines you. When you use your success to make a difference in the world, you add to a much more powerful bottom line.

Pictured above is (l to r) my brother Sean, tournament co-chairs Ron and Perry Steiner and me.

Apple was in the news again this week with the introduction of new iPhones and Apple watches. The fact is that I’m an Apple addict. I use a Mac, I have an iPad, iPhone and an Apple watch. This isn’t some mindless infatuation. I use Apple products because they are brilliantly designed, incredibly functional and increase my productivity, helping me be more successful. Apple is also an inspiration for me. I admire the way they lead, innovate and design. The truth is that my ultimate goal is for Algood to be the Apple of the caster industry. Here’s how I think we might be able to do that.

Innovation
Innovation is so important to us that we changed our name two years ago to Algood Caster Innovations. That kind of sets expectations and takes being a “me-too” company off the table. Rather, we are constantly pushing the boundaries on new product development. Last week, we introduced our new iLock mechanism for our smaller light duty series casters. We could have just miniaturized the existing design but rather we chose to re-think and consider what would make the product more useful for our customers. As a result, we extended the brake pedal to make it more accessible, added a lip for easier engagement and improved the teeth so that it will lock both hard and soft wheels. We also recognized that design without performance is superficial. We extensively tested the new mechanism subjecting it to 5,000 cycles of engagement and re-engagement. The result is not just a new product but new thinking.

Design
Really, there are two aspects to design in the caster industry. First, you have to develop products that satisfy customer’s needs and specifications, while meeting the highest standards of performance. Our internal design and engineering team is relentless in pursuit of perfection. There’s no limit to the number of prototypes we will create to make sure we get it right. But here’s what’s most interesting. We have all the most up to date technology like 3D printers but that’s not what gives us our edge. Instead, it’s the fact that every team member feels a personal commitment to creating the very best products possible.

The other aspect to design is aesthetics and we understand that casters can and should look good. That’s why we were the first manufacturer to put hub caps on casters. We understand that casters add to overall visual appeal of any unit or fixture and reflect on the company whose name is attached to it. Design inspiration can come from all kinds of sources which is why I frequently go to trade shows for other industries and read (on my iPad of course) a wide range of magazines and journals.

Experience
One of the keys to Apple’s success is what they call unboxing – the experience of unpacking your new iPhone or Mac. We know that in the caster business, the joy of unboxing is opening a carton to find exactly what you ordered in perfect condition. That may sound simple but over the past few months I have heard countless stories of shipments from caster suppliers that contain substituted or defective products. What makes matters worse is that these suppliers are totally inflexible and refuse to take product back or issue refunds. Stories like that tick me off because they reflect badly on the industry but at the same time I understand that we differentiate ourselves by delivering the right products on time and on budget.

Customer experience is also determined by the quality of the contact with our customer service reps– and we make sure that every one of them are keenly aware of the impact they can have and that they are prepared for every call. Time and time again, when I travel to visit with our customers, I am thrilled to hear about their positive experiences with our CSRs.

Being the Apple of the caster industry may ultimately be an impossible dream. But by constantly focusing on those elements that have made Apple so successful, we will continue to do an unbelievable job of meeting our customers’ needs and be a caster manufacturer that is constantly improving. And there’s nothing wrong with that.

Lately, I’ve been thinking a lot about Aretha Franklin’s classic hit Respect. That’s not just because I’m an R&B fan, but because I’ve been on the road talking to customers and if there’s one thing they’re not getting from so many other caster manufacturers, it’s respect.

Our customers, like most buyers of casters and wheels, often find themselves in the middle. Distributors are sandwiched between meeting the needs of their customers and negotiating with manufacturers. Corporate buyers are trying to meet the competing demands of finding the right caster product to satisfy the engineering team, while negotiating delivery dates to keep production on target and getting pricing that will make the finance department happy. And all of that’s not easy.

Against that backdrop I can’t believe some of the horror stories I’ve heard in the past few months. Customers are promised delivery on a particular date and make commitments to their own customers or internal departments based on that promise. And then, lo and behold, the product arrives weeks late, in many cases with no advance notice. Some times hidden delays are revealed with amazing excuses. “Well, you know those casters need lathing and our CNC equipment broke down, so we can’t possibly deliver on time.”

From what I heard, it’s common for shipments to arrive with product that doesn’t meet the spec provided or that is obviously sub-standard. And, if you’re in the middle, now what do you do? It seems that the corporate caster consortiums don’t want to respond to complaints. So you have to scramble to find other solutions –fast.

Customers – whether distributors or corporate buyers – don’t need that kind of aggravation and they shouldn’t have to put up with it. Doing business with suppliers shouldn’t be a guessing game. And what’s really incredible is that in many instances customers have been using these suppliers for decades, having given them tens of thousands of dollars in business.

So much of this is a result of offshore manufacturing. The necessary lead times are enormous and quality often suffers. I’ve seen first-hand the production standards of most offshore suppliers and its not pretty. On top of that, local suppliers often need to finish goods that arrive from offshore producers. That just magnifies the delays.

What bothers me most about all this is that it’s exactly the opposite of the way my father – and my mentor – taught me to do business and the way we conduct ourselves at Algood. We don’t want to be adversaries with our customers, lying and making excuses. We want to help them serve their many masters by ensuring they meet their deadlines. We’re not looking to make a quick buck. Rather, we want to establish relationships.

But we’re also not looking for an easy ride. We want to be challenged. Our fully integrated manufacturing facility provides us with great capabilities but sometimes we have to be tested to know what we really can do. We have just received two orders to produce over 20,000 casters in less than two weeks. It’s far from beyond our ability but we can only prove that to our customers – and ourselves – when being asked to stretch. What’s for sure is that you have to be a genuine North American manufacturer to get that done.

Ultimately, we want to earn the trust – and business – of our customers. We want to be there front and centre, helping our customers to be more successful and seeing their businesses grow.

Aretha said, “R-E-S-P-E-C-T, find out what it means to me.” We know what it means to respect our customers and we’re proving it every day.

As a huge NBA fan, this is an exciting time of year for me. The NBA Finals are an opportunity to see the best of the best and even if the last two teams standing was a foregone conclusion, we are still being treated to some amazing basketball. The lessons to be learned from basketball extend well beyond the court and are a guide to how we make decisions at Algood. Here are three examples.

1. Strategy in basketball has taken a major shift in the past few years. Having analyzed data, teams determined that the three point shot was a highly effective and under-utilized offensive strategy. Three point shots create the potential for 50% more points on every play. To exploit that potential, many teams began looking for players who could make a higher percentage of three point shots and re-training existing players to do the same. Along the way, some teams (like my home team Toronto Raptors) have not adapted and are unable to reach that elite level.

The dangers of not innovating are just as prevalent in the caster industry. After the economic downturn in 2008, we recognized that one of the keys to thriving in manufacturing was that we had to make new product development a priority. R&D became a strong focus. Now, we are introducing multiple new products as well as product enhancements every year. That, along with some amazing new products that will be unveiled shortly, is ensuring that we have a leg up on our competition but more importantly, we are better able to anticipate and respond to the needs of our customers.

2. Inasmuch as three pointers are creating more potent offenses, the Warriors are beating the Cavaliers just as much because of their defense. The lesson is clear. To win, teams need to be outstanding on both sides of the court.

The way I see it, Algood’s offense is our front line – our outstanding sales representatives and customer service team. These are knowledgeable and experienced men and women who are bringing our extensive product line to our customers and helping them find the ideal caster and wheel solutions. And they do a great job. But at the same time we need an outstanding defense to guarantee the effectiveness of our sales and support efforts. Our design, engineering and quality control teams ensure that we have the right product for the right challenge, that it will work flawlessly and that it is delivered as ordered and on time. That combination of offense and defense is generating more and more wins for us at Algood.

3. For teams to adapt to the changing game while being equally effective on offense and defense, they need the right players. While last year’s Warriors team was stellar, the addition of Kevin Durrant has made them virtually unbeatable, within one game of going without a loss in the playoffs. And while Lebron is always the focus of the Cavs, there is no question that without his teammates like Irving and Love, they wouldn’t be as good as they are. Both the Cavs and the Warriors have devoted a huge amount of thought and resources in assembling the ideal roster.

One of the enduring lessons I learned from my father is that our staff is our greatest asset – more valuable than any piece of equipment or machinery. We make sure that we have the right people in the right roles. That means holding out for the perfect fit when hiring, being prepared to move people into positions that are better suited to their talents, and investing in training to add or enhance skills. Our employees are truly a team. They depend on each other and value each other. Each of them contributes importantly to our success and is deserving of our respect and appreciation. There is no doubt in my mind that the Algood team is the greatest reason for our success.

So while I’m glued to the TV, watching to see whether the Warriors can complete the sweep, I’ll be thinking about how Algood can continue to be an elite team of castersmiths, providing unbeatable service to our customers and becoming the champions in North American caster manufacturing.

We recently added a 1,000-ton Cincinnati injection moulding machine to the equipment in our manufacturing plant. While this fits nicely into our new “Think Big” mantra and will have a significantly positive impact on our capacity, it came with a six-figure price tag. That’s certainly an amount that makes you think before you buy. The interesting question is do you make a decision like that based on data or on intuition?

The numbers certainly played a huge part in this major capital investment. Our capacity utilization rate was running high. In other words, were coming close to maxing out on our production capability. A good rate is 75-80% and even though we are running on a 24/5 production schedule, our rate was higher than what’s optimal. In a way that’s good thing because it means we are manufacturing lots of casters and wheels but we didn’t want to jeopardize our proven ability to deliver high-quality product on time.

This new injection moulding equipment will allow us to produce wheels and caster components 20% faster and will increase our productivity by 15-20%. In addition, we will be able to manufacture bigger wheels faster – like our RollX™ wheels with 3” tread widths.

Another advantage to the new machinery is that it now gives us more options in terms of the production equipment we use for any particular project. That, in turn, allows us to find the plant-wide equipment usage plan that will guarantee deadlines and product standards.

So those are the measurable components in the decision-making and honestly that got me about 75% of the way to yes. The other 25% was intuition. I’ve often said that business is, in many ways, legalized gambling based on hunches or best guesses.

In this case, part of that was listening to what our customers had to say about their experience with us – and our competitors. I spend many weeks every year on the road meeting face to face with customers and I continue to hear their frustration at dealing with offshore suppliers. My sense was that enhancing our North American manufacturing capability would better satisfy customers.

Through my meetings with our salespeople and my first-hand interactions, we were getting very positive feedback to our casters and wheels. The fact that customers were increasingly happy with Algood product led me to believe that we would make use of the increased production capacity this new equipment would bring.

In addition, I am optimistic about the economy and the continued demand for product manufactured on this side of the ocean. The political climate and relate considerations also factor into the decision.

So, how will we measure the ROI on this new equipment? How will we know if the investment is leading to success? Our capacity utilization and productivity rates will be good indicators. Increases in the number of moulds that we have on hand as well as the amount of injection moulding material we use will also be good determinants of success. Overall sales growth is always a healthy sign. Aside from all the usual metrics, for me the greatest measure of success will be if we need to buy yet another machine to continue to meet demand.

As a business owner, investments in equipment that come with price tags in the hundreds of thousands of dollars are enough to keep me awake at night. Inasmuch as we all like to believe that we would make these kinds of difficult decisions with perfect logic, the reality is that the best decisions are made on the basis of both numbers and gut.

For the first time in almost 20 years, Algood is returning to the Promat trade show in Chicago this year. It’s a huge show with over 700 exhibitors in the material handling, supply chain and logistics business. There are two reasons we’re coming back. One is that we have more confidence than ever in both what our company has to offer and in the future of the industry. The second reason is that trends have shifted and these large expositions have returned to being more about the trade and less about the show.

Exhibiting at a show like Promat represents a very significant investment. There are lots of materials and presentations to be prepared. But more than that, the man-hours required both in advance and at the show come with a hefty price tag. That’s money that could be spent on product development. So you can bet that we want to be very sure that this will be a good use of our time and money.

Why? Because we have a story to tell. We want current and prospective customers to see the breadth of our product line and have the opportunity to interact with our people. Our “Think Algood. Think Big” slogan is as much about our large, high capacity, heavy duty casters as it is about our ability to help customers see the big picture and seize opportunity. Websites and catalogues display product but  when people hold and feel an Algood caster or wheel, they really see the quality and workmanship that are built into it. We are confident that as Castersmiths – true masters of the caster industry –– we will demonstrate our knowledge, capability, ingenuity and dedication to our customers.

Let’s face it. There’s also a bottom line to an investment in a trade show. We take a no-nonsense approach to ROI for a show like this. While its great to promote awareness and enthusiasm, they don’t pay bills. We believe that we can generate significant business by converting introductions into meetings and meetings into sales.

We are also confident about the industry. More and more often, we are hearing about the frustrations of dealing with offshore producers both in terms of product reliability and meeting delivery times. North American producers are upping their game, becoming more sophisticated and adding resources. As one of a small number of true manufacturers on the continent, we are optimistic about the growth potential and are witnessing many customers turning away from offshore suppliers.

We stayed away from Promat and other large shows for years because, in my opinion, many of them had become more about the show and less about the trade. There were glitzy booths; lots of small talk, handshaking and backslapping; and of course, the required amount of drinking. But there was very little to be found in terms of innovation, product development and a commitment to better serve the industry. The result was visitors did a lot of tire kicking but found little to attract their attention.

Times have changed. Companies sending employees to visit a show are demanding more accountability. They want them to go with goals and come back with the product ideas and solutions that will ensure those goals are realized. In part, that explains why exhibitors have raised the bar on what they are offering. They are also looking for measurable results. So, you’ll see more innovation, more commitment to meeting customer needs, more steak and less sizzle. In a word, it’s the value that being sought by both exhibitors and visitors that is driving changes in trade shows.

Algood’s tremendous growth in capability and confidence combined with the changing nature of these huge expositions have created the opportunity for more trade and less show. And that’s why we’re back!

Our weekly engineering meeting may be the most expensive meeting that we hold but it’s also the most valuable – to us – and to our customers.

This regular meeting was our response to the economic downturn in 2008. At the time we had to make a choice. We could lay-off, cut back and retreat. Or, we could figure out how to be more efficient, how to be a better supplier, a better caster manufacturer and ultimately a better company. We chose the latter and have never looked back. As one of the first measures in this new approach, we took what had been an occasional ad hoc meeting and made it part of the weekly schedule.  Gathering our best minds – from sales, production, design, manufacturing, engineering and management – we started plotting the future of Algood.

Now, six years later, this weekly multi-disciplinary meeting is reaping important benefits for Algood and for our customers. Here’s how:

Comprehensive Customer Care
We begin every meeting with an update on customer concerns and product requests. We take customer feedback very seriously. Issues range from component malfunctions to the boxes we use for shipping. The resolution can involve anything from an improved production process to additional quality control measures to the design of new machinery. Because every department is represented, there’s no such thing as a superficial Band Aid fix. We develop lasting solutions that meet both the current and future needs of our customers.

Integrated Problem Solving
The inter-departmental representation at these meetings mimics Algood’s vertically integrated manufacturing environment that includes in house tool & die, injection molding, metal stamping and engineering departments. It means that there is no finger pointing and there is open communication between all departments. Nothing is swept under the carpet. Items requiring attention are given target resolution dates and stay on the agenda until they have been dealt with successfully. Participants at the meeting take collective responsibility for the success or failure of initiatives.

Innovation
There is no such thing as a bad idea at these meetings. The out-of-the box thinking has resulted in most of the product innovations for which Algood is known. In the last two years, Algood has introduced almost two dozen new products to the marketplace and we are developing our own proprietary production equipment. While other caster companies have turned to offshore solutions, we are investing in North American manufacturing. With shorter lead times and outstanding product quality, Algood is being recognized globally for its innovation and commitment to customer care.

The commitment to re-imagining the future of Algood with the goal of ultimate customer satisfaction is what earned us recognition as a “custom-product powerhouse” in a recent Financial Post article. What’s even more impressive is we achieved this on the strength of the traditional values that come from being a family-owned business. As multi-nationals and investment-firm-backed competitors turn to offshore supply chains, I am proud of our ongoing commitment to being a leader in North American caster manufacturing. Our weekly engineering meetings were the key to turning the corner last decade and our powering Algood into the future. The price tag associate with the meeting may be high but it’s an investment that will pay dividends for many years to come.

There’s no question that if you’re an Algood customer you benefit from the diligence we use in selecting suppliers. Our commitment to quality and service can only be maintained with a superior vendor network.

So, how do we pick those great sellers? For starters, we look at all of the obvious criteria. We check to make sure that the people in charge of the operation are well qualified. What’s their reputation in the marketplace? We conduct a site visit and make sure that the work environment is safe and clean. We look carefully at the testing facility and apparatus being used. Our engineering department reviews testing reports and ISO qualifications. We ensure that early production runs match the samples we were given.

The next level involves discovering how they have innovated. Can they be responsive to the very particular customer requirements that we routinely meet? We need suppliers that can be as creative and solution focused as we are.  And can they keep their costs in line so that we can meet our pricing commitments?

But here’s the thing. There are companies that meet all those standards that I still wouldn’t want to do business with. I’ve met lots of people who were well qualified on paper but really didn’t know what they were talking about. Ultimately, I want suppliers that are going to take care of me the same way we take care of our customers. I want to know that my business means something to them. Because that way I’ll get top of the line service, an outstanding product and tack-sharp pricing  – and I will pass every one of those benefits on to my customers.

Finding those special suppliers comes from the gut – and sometimes takes guts. More than once, I have given business to a vendor who lacked experience but had the drive, the passion, the raw ability and the high regard for quality that would make him successful. We will take the time to “train” a supplier that has the right kind of potential. I have to be personally impressed to take that kind of chance but when I have been, it has almost always worked out well.

A big part of that approach comes from a lesson that I learned from my father. Everyone needs a break in business. At Algood, we owe some key successes to the right break. So, sometimes you end up with a great vendor by giving someone else a break. Business is built on breaks and with them come the trust and loyalty that are invaluable in setting up a high quality supply chain.

There’s nothing worse than being stuck with a supplier out of necessity. And there’s nothing better than having suppliers who are highly motivated and quality driven. It’s all about trust – implicitly trusting that a supplier will help us meet our customers’ needs. And trusting our gut in finding those suppliers.