24•
Master Distribution
Extensive stock of exotic alloys defines Multalloy
(Continued from page 22.)
a new line? Stanwood:Multalloy stocks mate-
rials that are on major AMLs, so the vendors have already pre-qualified themselves in most cases. This saves not only time, but also money, as the mills take on the risk of R&D and then qualification with the end user/plants. Multalloy monitors the major end users though customer feedback, and stocks material based upon our distrib- utor customers’ needs. Multalloy carries over 15 different
alloys in stock and utilizes hundreds of vendors to source and convert non- stock items on a daily basis for cus- tomers. MJM: Do you have an outside
sales force, or are all sales done through inside personnel? Stanwood:Multalloy does have an
outside sales force, which we are cur- rently expanding. However, the bulk of sales are handled by the inside sales group. Outside sales is there to build relationships, troubleshoot is- sues, act as a customer advocate and relay strategic information about the area in which they are traveling. In- side sales also has the job of building relationships via the phone, which is very hard to do in the short span of a sales call. They have the added task of pricing, sourcing material and fi- nally selling it all within the same pe- riod of time. The Multalloy inside and outside
sales staff are very experienced with these types of sales and show their success by not only the length of time Multalloy has been in business but the large volume of returning cus- tomers looking for help. MJM: What have you found to be
the best ways to market your business and target potential new customers? Stanwood: Multalloy uses a two-
tier approach by initiating contact through a personal visit by outside
sales, followed by inside sales making contact via phone. With today’s avail- able technology, many inquiries come through the web and e-mail, allowing inside sales to have initial contact. From there, inside sales targets spe- cific contacts who need follow-up with additional information/ relation- ship building by outside sales. Because Multalloy sells through distribution only, it limits the amount of advertising and trade show expo- sure in which Multalloy can partici- pate. People and direct contact with the customer is the main marketing tool for Multalloy. MJM:How has Multalloy adapted
to your customers’ changing expecta- tions in recent years? Stanwood: Mainly the changes
have revolved around pricing — which is a constant challenge because of the volatility of the nickel and molybde- num markets. Lead times are another point of contention, espe- cially when business is up and demand is heavy. One way Mul- talloy improved to meet these challenges was to install a com- pletely new software system to track sales, stock and purchasing. Multalloy more ably manages the entire supply chain, reducing costs and maximizing the customer spend through efficiencies never before re- alized.
Another area that involves cus-
tomer’s evolving expectations is the introduction of new alloys. Multalloy is very conservative bringing in emerging alloy products. What may be hot in another country may not be in another Multalloy sales area. Constant communication with our staff, the mills in- troducing the alloy and, most importantly, our customers are key to making wise selections on the emerging alloys our customers require. MJM: How impor-
Multalloy tracks inventory in real-time so inside sales- people can confidently inform customers of product in stock for immediate delivery.
tant are the new elec- tronic technologies such as online order- ing and order tracking, to your business? Stanwood: Right
now very important. Multalloy introduced a
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Santa Fe Springs, Calif., is one of six locations in six states that enable Multalloy to serve customers nationwide.
new sales and accounting software to improve the sales cycle across the board. Customer interactions are moving more towards web-based sales and efficient transactions.
tomer base is becoming more price conscious. If the same quotes revolve around the office several days in a row, it means the end user is really working to get the best deal. Multal- loy understands the difficulty for its distribution customers and works to get them the right number the first time. However, quality is still very important to Multalloy. Stock is only bought from vendors that are listed on the major refining companies’ AMLs. No third-world-nation stock or non-approved stock is tolerated. MJM: Do you have a minimum
order quantity? Stanwood: Multalloy has no min-
At Multalloy’s Santa Fe Springs facility, like its other facilities, there is no minimum order, so customers get what they want, when they want, including weekend call-out service.
Inventory management is very im-
portant within our organization, and with the implementation of the new software/system, the job will be much easier. Multalloy can track in-
imum orders. The customer gets what the customer wants, including week- end call-out service. Many customers don’t realize Multalloy has this serv- ice available. MJM: How many SKUs do you
stock? Stanwood: Multalloy stocks thou-
sands of SKUs and many are stocked so they can be converted to two, pos- sibly three other products. The actual SKU # inventory if you consider this
it limits the amount of advertising and trade show exposure in which Multalloy can participate. People and direct contact with the customer is the main marketing tool for Multalloy.”
“Because Multalloy sells through distribution only,
ventory in real-time assuring no more sales personnel calling a customer back saying “I thought I had it but it turns out I don’t.” This is after the customer has placed an order and is one of the most frustrating things a customer has to deal with. It not only shows the customer they can’t rely on what they are told, but discourages them from going back. Multalloy has virtually eliminated this situation with the new system. MJM: What is more important to your customers — quality or price? Stanwood: The Multalloy cus-
is in the millions if not more. MJM: From how many vendors? Stanwood: Multalloy uses several hundred vendors ranging from major pipe/fitting mills to small mom and pop machining and converting part- ners. The variety of vendors reflects the diversity of Multalloy distributor customer’s requirements. The num- ber of stocked and serviced alloys and associated product forms has def- initely increased over the last decade. MJM: Are you planning on adding anything new in the near future? (Turn to Multalloy... page 26.)
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