Daily Archives: May 17, 2022
When it comes to customer satisfaction, Newberry Tanks is taking the lead by getting the lead times out of the order and fulfillment process.
Wait… slashing lead times?
Okay, we know what you’re thinking. Haven’t we witnessed the supply chain issues riddling the industry? The rising prices of steel? The unavailability of fiberglass? Labor shortages? Transportation delays?
Yes, we have. We could let those obstacles define our current state of business, or we could face them head on proactively. We’ve never been the “sit-around-and-wait” sort.
That’s why we implemented our signature Preferred Customer Program (PCP) in late 2019. Featuring planned buildouts and on-site inventory for immediate access to tanks, our PCP ensures order fulfillment in only 24-48 hours versus the industry’s extended lead times.
So how does this work?
Simple. You sign on to receive a certain quantity of tanks over time, while locking in competitive pricing, including material and labor pricing, at the time of signing. Then, your tank is delivered within days (instead of weeks or months).
Not only can Newberry ship needed product within a slim window, but as one order is fulfilled, an immediate replenishment initiates, ensuring that Newberry is always ready to meet and stay ahead of the need, helping you solidify your competitive edge. While this model is capital-intensive for Newberry, it pays dividends by enabling us to meet your growing demand and assist you to continue to grow both internally and externally.
What you’re saying is…
Newberry’s Preferred Customer Program eliminates the guesswork from the highly variable nature of the industry with planned buildouts and on-site inventory for on-demand access to tanks with:
- Order fulfillment/delivery in 24-48 hours versus weeks and months
- Immediate replenishments by maintaining a min/max level of stock on-hand
- Locked-in, competitive pricing
- Regular Stock Reports, providing customer insights of dedicated inventory
In its first year, the PCP worked so well in helping us jointly plan buildouts and eliminate delivery guesswork that many current customers on the program significantly increased revenue and overcame growth-halting lead times in the volatile industry climate of 2021.
In fact, three of four customers on Newberry’s legacy consignment program switched to the Preferred Customer Program in 2021.
What is the benefit?
We let our customers’ statistics speak for themselves.
* Oil distributor saw 188% unit growth
* Fortune 100 company had lead times slashed by 70% = Projects on schedule
* YoY revenue grew 2.3x for oil handling and equipment company
One of the nation’s leading oil handing and industrial equipment distributors made the move and realized a 160% increase in unit growth in the first eight months of 2021 over all of 2020 sales and 188% overall by year’s end. Year-over-year revenue increased 2.3 times. The Director of Operations said, “Previously we’d wait weeks, but now it’s days. This has enabled us to gain significant new tank business.”
The formula for success is actually quite simple: Ensured tank availability means you can fulfill your demand efficiently, and this, in turn, leads to more demand and increased sales for your company. All in all, faster delivery makes way for growth.
And who doesn’t want growth?
So, this is the part where we say again—we know what you’re thinking: Newberry’s PCP sounds great, but it probably only works for established customers, right?
Not so fast.
The Preferred Customer Program not only eases order and delivery for long-time customers, but it’s a perfect option for companies looking for solutions—especially when we work closely with new customers to understand their specific challenges and then offer them guaranteed availability to help hurdle supply chain obstacles to maintain growth plans. As one Construction Manager at a Fortune 100 company commented “lead times were slashed by 70%,” helping to keep their projects on schedule.
You read that right…ON SCHEDULE. And in our manufacturing space where one undeniable truth is that time is money, there may be no sweeter words.