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Procter & Gamble Chooses Kaman
To Supply All Its Plants
Procter &
Gamble has awarded Kaman Industrial Technologies a multi-year contract
to supply its U.S. plants.
Kaman Industrial Technologies now provides P&G for the first time
with a single, standard source for all its bearing and power transmission
supplies. As part of the agreement, Kaman is adding more than 12
new branches to support P&G's plants.
The Fortune 500 company -- which makes a wide range of paper, health,
beauty care, food and beverage, and laundry and cleaning products
-- becomes one of Kaman's largest national accounts. "P&G has a
lot of business when you put it all together," says regional manager
Don Roland.
P&G selected Kaman as the supplier that provided the best overall
value. By eliminating costly redundancy and duplication of effort
P&G expects to substantially reduce costs, depending upon the size
of the plant, says Fred Christ, Kaman's corporate account manager,
who also serves as P&G project manager.
P&G knew what it wanted
P&G was already familiar with the kind of high-quality, cost-efficient
service Kaman provides its customers. Its paper mill in Mehoopany,
Pa. has been a customer for 25 years. P&G wanted to know if any
distributor -- including Kaman -- could offer the same kind of service
nationally to the rest of its plants across the U.S.
The two companies work well together at Mehoopany, says Christ.
"We have had a mutually beneficial relationship. Kaman gives a lot,
and in return we get a lot. They feel the same way. P&G looks upon
us as an extension of itself. We are its power transmission purchasing
arm. They know that we know this business inside-out."
Kaman met P&G's challenge. "We were able to demonstrate that we
could do the same things at their other plants that we did at Mehoopany
-- help them operate more productively and profitably on a national
level," says Roland. "Most of the programs we will provide P&G nationally
are working successfully now in Mehoopany."
Price mattered, but value and service counted most
P&G did not rush its selection of a national distributor. The company
started looking for a national distributor about two years ago.
"This was the first time P&G has ever gone out and acquired their
power transmission business nationally. They were meticulous in
their selection -- very thorough and deliberate in their analysis
of all the suppliers in the marketplace," says John Kronenwetter,
Kaman's national account manager.
A significant factor in the selection process was Kaman's proposal.
"If we weren't able to offer best value, it didn't matter how much
history we had with them. It was very competitive," Kronenwetter
says. "Procter & Gamble was not just shopping for the lowest price.
What most attracted them to Kaman was the total value its technology
and services added to the total package -- along with a competitive
price."
"Their decision was based on an overall evaluation of cost, quality
of products and service," says Christ. "If a company can't supply
the service, cost doesn't mean much."
"Anyone can fill an order," he says. "In addition to providing service
that is timely and competitive, Kaman offers customers the follow-up
and technical expertise they need -- and provides alternatives and
savings opportunities."
Documented Savings heart and soul of program
P&G chose us, says Christ, because "we are more than a bearing and
power transmission supplier. We provide solutions. We work with
our customers to help them reduce their cost of doing business and
become more competitive. This is what sets us apart from our competitors."
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Procter
& Gamble's paper mill in Mehoopany, Pa., has been a Kaman Industrial
Technologies customer for 25 years. The plant processes raw
timber into a wide range of popular brand name paper products
such as Bounty, Charmin, Pampers, Puffs and others. |
Christ says, "We find ways to help our customers increase
productivity and reduce costs. It can be as simple as using an energy
efficient pump motor to lower kilowatt consumption; or reducing inventory
carrying costs by eliminating duplication and unused products; or
enabling a customer to buy supplies from us electronically."
One program more than any other that sold P&G on Kaman is something
called "Documented Savings," already successful in Mehoopany. "Our
cost-management program is the heart and soul of the package we put
together for Procter & Gamble," says Christ. "Documented Savings is
an excellent example of why P&G chose Kaman. They know that we are
extremely innovative. A lot of companies are doing things now that
were first done by Kaman."
Another important factor in P&G's decision was the value offered by
the diversity of Kaman Corporation itself. Says Roland, "It is the
high-technology services we provide. The vastness of Kaman. We can
draw from Kaman Aerospace, Kaman Sciences and Kaman product specialists
-- then blend these talents and skills to meet all their needs."
Implementing the new program
Christ spent most of 1996 implementing the new distribution program.
"Except for Mehoopany and Oxnard, Calif., none of Procter & Gamble's
plants had done business with us," says Christ. He visited each P&G
location across the U.S. to introduce the new program -- explain who
Kaman is and what the company offers.
"Each plant has its own needs and problems, says Christ. "A paper
mill, for example, might be interested in inventory management. A
health and beauty care plant may want or need more technical support
-- an account manager who understands their products and can help
them solve problems. Another plant may have a need for bar coding.
Each plant is different."
"It's a good relationship", says Christ. "It is built of mutual commitments
and mutual respect. P&G is an outstanding company. They are excellent
people. I think our cultures blend well. They are much like Kaman
-- open, honest. We have their best interest at heart and they have
our best interest at heart. We are all winners with this agreement."
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At P&G's plant in Mehoopany, Pa., Kaman branch manager Chris Kelly (right), works closely with Dave Ball, a P&G buyer, in finding new ways to increase productivity and reduce costs for this leading manufacturer of home products. |