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PVF Hall of Fame Educate, empower, execute —


Paramount Supply blends traditional values with modern service and technology


BY MARY JO MARTIN Editorial director


I


t is such a privilege to introduce Paramount Supply Co. as The Wholesaler’s PVF Hall of Fame


inductee for 2011. This company was founded on a “wing and a prayer” in 1954 by John Hagen in Portland, Ore., but through hard work and determina- tion, Hagen created a highly respected organization that has continued to per- severe, innovate and grow. Prior to starting his own company,


Hagen had been a valve salesman with Harris Supply and Zidells. But entrepreneurial at his core, Hagen was able to secure a second mortgage on his home and with that seed money he rented a 2,000-square-foot warehouse. Thanks to the reputation he had built in the market, he soon was able to bring on lines such as Jenkins Bros, Taylor Forge and Flagg Flow, among others. As Paramount president and owner since 1986, Ken Grothe — Hagen’s


son-in-law — relates, “It was always enlightening listening to John relate to how difficult the early days were as he fought hard to secure product lines, carefully monitoring his fi- nances, often moving inventory to the front of the bins so that visiting man- ufacturers and customers noticed he


deal with is a bureacracy.”


information and decisions made quickly and the last thing they want to


“Customers...want


named the 2011 inductee to the PVF Hall of Fame


Reflections upon being “As I said to our employees in a mes-


sage to everyone, I am extremely proud but quite humbled to accept this award. The relationship we have had with all of our suppliers over the years is so impor- tant to our success. In the early years of Paramount Supply when money was tight, companies such as Taylor Forge took a considerable credit risk that was important to our success. “As everyone would say, without our cus-


was stocking plenty of inventory. John always had great vision and in- sight, and always preached that at all costs you take care of your cus- tomers. His first big break came when Boise Cascade had a major fail- ure in its Wallula facility and John made the long trek overnight to the mill to deliver the 12-inch cast steel valve they desperately needed first thing in the morning. When they re- alized the type of service that John would provide and was committed to, Boise Cascade decided that Para- mount Supply was a com- pany they wanted to do business with.” Before joining Paramount


tomers we are no longer in business. As John Hagen always preached and I con- tinue to preach today, we don’t have a sin- gle product that our customers couldn’t purchase somewhere else, so we had bet- ter out service our competition if we want to maintain their business. “But all that said, nothing has been more


important to Paramount Supply than our employees. I am extremely proud of the number of years Paramount’s employees have been loyal to the company and have worked so hard to make Paramount the company it is today. This success is really due to the ability of our employees to buy into all of the guiding principles initiated by John Hagen and followed closely today at Paramount Supply.”


— Ken Grothe President, Paramount Supply


in 1974, Grothe spent two years at Ernst and Ernst, and obtained his CPA certificate. As he explained, the educa- tion, training and auditing experience he received dur- ing that time was invaluable in helping him to under- stand the details of running and managing a business from a financial standpoint. He bases his leadership/ management philosophy on what he calls “the three Es” — educate, empower and execute. “Paramount Supply over


the years has been very keen on educating our staff in the fundamental and advanced principles of steam as well as heavy doses of technical product and manufacturing training,” Grothe explained. “Most of our locations


have at least one engineer on staff and along with the manufacturers’ personnel spend a significant amount


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Paramount’s warehouse crew at the Will Call Counter are (from left): Rod Jordan, Dan Weum, Chris Best, Randy Ayers, Anthony Jackson and Cory Wright.


of time learning how to solve product or process problems encountered by all industrial plants. Secondly —and generally much more difficult to ac- tually implement, and really allow to happen — is empowering your em- ployees. Paramount manages each branch as a separate profit structure. Each manager is empowered to run his branch as if he owned the com- pany. All employees have to feel comfortable making whatever deci- sion is required to take care of all issues that arise with customers on a timely basis. “Customers, as you are


aware, want information and decisions made quickly and the last thing they want to deal with is a bureacracy. Fi- nally, you must execute the vision and mission statement your company has deter- mined to be the best for its success in the marketplace. Your employees need to rec- ognize where the company is headed and must have the appropriate tools to fulfill the vision. Feedback from cus- tomers and suppliers must be reviewed and, if necessary, appropriate changes imple- mented that will allow the company to better fulfill and execute its business plan.” As part of its training program for


Chesterton and others each month, making them available online to all employees. They are also very active with steam trap, expansion joint, pump and gasketing seminars for all customers who are interested in train- ing for their plant personnel.”


Relationships matter As Grothe relates, one of the most


enjoyable aspects of the business for him is the depth of relationships that he


•THE WHOLESALER® —MAY 2011 (Continued from page 34.)


Ken Grothe (left) and John Grothe flank a portrait of Paramount Supply’s founder John Hagen.


both employees and customers, Para- mount does in-house videotaping of its training sessions for many of its product lines, such as Numatics,


and the company have developed over the years with many manufacturers. “At times our loyalty to a manufac-


turer may not have been the best busi- ness decision but certainly allowed (Turn to An evolovling... page 38.)


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