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FLUIDALL
How the addition of Newberry’s steel tanks to Fluidall’s catalog created an immediate and profitable revenue stream.
About FLUIDALL
Fluidall, LLC is the most innovative and fastest growing fluid storage solution manufacturer in North America and an active distributor of all products related to oil and petroleum storage. Rob Hegg is the Vice President of Sales and Operations. Brandon Varness is the Regional Manager for the Western U.S.
The Challenge
Fluidall’s catalog is one of the most comprehensive in the U.S. for all products related to oil and petroleum storage. However, the catalog did not offer steel tanks.
Rob Hegg explains, “We had a number of customers that were interested in steel tanks, but we simply didn’t have a relationship with a vendor that met our needs. I heard good things about Newberry, and I liked their Midwestern location from a distribution standpoint. Most of their competitors are on the East or West Coast. Much easier to get national distribution from a Memphis location.”
The fact that Newberry Tanks is a Steel Tank Institute member, and therefore compliant with all UL 142 codes, also helped. Brandon explains, “There seems to be more and more code compliance every day, so having code compliant tanks really matters.”
Rob contacted VP of Sales James Fischer and Sales Manager
Trevor Fisher at Newberry.
The Solution
Newberry’s “New Thinking” philosophy emphasizes expedited delivery and turnkey solutions. The fact that Newberry is a FedEx strategic partner, as well as located close to FedEx headquarters, helped buoy Rob’s confidence. “We felt they could meet our delivery needs, and the price point was right where it should be.”
Rob decided to start by offering a variety of Newberry’s lube oil tanks. He contracted to market the award-winning Double Wall Slimline, Workbench and Horizontal steel tanks. He then fired up Fluidall’s impressive marketing engine to announce the new line, anticipating an at least a year long lag before the products would be profitable.
Rob explains, “Usually it takes 12-18 months for a new product to gain traction. But in this instance, demand was immediate.”
Inventory
“Simply put, when you have access to tanks and the shortest lead times in the industry, then you can sell more tanks,” Maples says. “First and foremost, this has been one of the most positive results we’ve seen. It’s helped us compete better with a lot of competitors in the local area because most of them don’t have access to this sort of program and are hampered by traditional purchasing methods, which don’t rely on yearly forecasts.”
Maples notes that in the case of their competitors, the lack of visibility on client needs can lead to lengthy lead times when the manufacturing process isn’t instigated until the order is logged. With Newberry’s PCP, RBM works directly with Newberry to forecast yearly requirements and then those requirements are automatically put into the production pipeline so if any changes arise, minor adjustments can be made rather than larger, more costly ones.
The impact on lead times has been substantial, decreasing by 67% from six weeks to two. Being able to completely fill trucks with tank shipments rather than shipping piecemeal has also led to notable savings in transportation/fuel costs as well as a reduction in air pollution.
“The positive benefits of the PCP program trickle down all the way to the end user in a multitude of ways. It might be hard to put a calculation on that comprehensively, but it’s significant,” Maples says.
Speed
Rob continues, “I went back to Newberry to expand the line, and then went back again to expand it a second time.”
Rob’s endorsement is categorical. “Everything about Newberry has been great:
Brandon concurs. “I’ve been talking to Newberry’s customer service ever since Rob closed the deal. And Trevor and Nancy are phenomenal. If my customer has a question, I call them, and they get back to me in 15 or 20 minutes. With other companies I sometimes have to wait hours.”
Proactive Approach
And what have customers had to say?
Rob replies, “Our industry is pretty thankless, so if you don’t hear any complaints, that’s the compliment. We haven’t had any complaints about a Newberry product to my knowledge and that says a lot. Because we’ve sold a fair number of them.”
Newberry’s “New Thinking” helped produce immediate sales, high demand, and customer
satisfaction for the company and their customers. You might even say Fluidall’s “cup runneth
over.”
Newberry UL 142 Steel Tanks are approved for the storage of flammable and combustible liquids under NFPA 30
Demand was immediate. I went back to Newberry to expand the line, and then went back again to expand it a second time. Everything about Newberry has been great.”
Rob Hegg VP of Sales
