WITH distributors under greater market pressures than ever - with new entrants, new product lines and the ever present threat of more and more manufacturers going direct to contractors - it is important to add value.
Hawco is one such distributor, answering these challenges with a series of initiatives based on the principle of giving the customer exactly what they want and need - at the right time and price.

The company operates an extensive logistics and engineering facility in Bolton which acts as the primary hub, delivering products to installers and end users within the UK, Ireland and mainland Europe. Customer and supplier support comes from a field application engineering and sales team of 11, plus 17 inside sales, telemarketing, and a dedicated technical support group of four, based at Hawco's head offices near Godalming, Surrey.

'We really pride ourselves on our service,' said Gary Bennett, md of Hawco Group. 'Hawco is a focused technical solutions distributor, specialising in the design-in and supply of refrigeration, air conditioning, thermal management and electrical process control products.' The company has over 26,000 product variations amounting to £3m of focused inventory.

Three categories

Hawco categorises its products in three ways. A is categorised as general wholesale inventory, 'the quick moving products,' said Gary Bennett, 'This stock tends to turn anything from three to eight times per year but our goal is to always have this inventory in stock.'
These fast-moving wholesale products vary from line components, compressors, controllers, tools, electrical products to a complete air conditioning system, be it an LG Art Cool or mini VRF system.

Spares are also important. 'We see spares as an additional support with even many of our competitors calling upon Hawco to assist with spares needs. We think it's important to be able to make sure that when somebody is on an install, or maintenance contract, that they can solve any problem straight away - we know that an installer doesn't want to be called back to site.'

B classified inventory items is stock that is being held specifically to a customer's demand. Many of these products are non standard and are ordered to a customer's unique design or build. This inventory allows Hawco to minimise any lead-time fluctuations and ensures continuity of supply.
'B items are specific to each customer's individual stock needs,' said Gary Bennett. 'They are ring-fenced so that the inventory cannot be used for other demand and sales are aware that this inventory cannot be re-allocated without first discussing with the customer.'

'Hawco manages and balances its inventory for the customer based on what they perceive their future demand to be. They can just call it off. They have complete flexibility. They don't have to worry about lead times because we have done that for them.

'Hawco has over 7,500 active customers and I'm sure that they would be the first to complain if we were unable to meet their needs or started charging for stock or didn't have the right stock.'
The third category, the C items, are back-to-back products which are not required everyday and where the customers can live with the lead-times and associated minimum order quantities but still require Hawco to assist in their product needs but perhaps only once per year,' said Gary Bennett.

Stock levels

Stock holding is constantly being reviewed and the company has sophisticated metrics and SIOP techniques to monitor product movements. 'We have a zero-defect policy based on Six Sigma methodology and process not only for the quality or our products but also in terms of our operation, order entry and stock management.

'The SIOP process makes sure that we have the right product mix and levels. This sends positive messages to suppliers as well as looking after customers. Only by providing and getting information can the company ensure that its stocks are at absolutely the right levels.

'We generate business directly and indirectly even helping some of our customers through our highly focused and motivated internal marketing team to target their customers and generate business.
'The advantage for us is that they use Hawco to source products. So we say if it is air conditioning then, of course, we have LG, which is very important to us. We have 452 suppliers in total but LG is one of our main leading brands in terms of air conditioning.'

Customer opinions

Hawco carries out 'voice of customer' actions every month that are plotted into a marketing tool called the Boston Matrix which is designed to fine tune our product portfolio, identify gaps in our service model and any new opportunities to capture share against our competition. It enables Hawco to evaluate what end-customers really think of the products they are buying and compare different items. This information can then be relayed back to the manufacturers.

'We can give them a very real time-specific image, not a £60k consultants' report, but a real voice from the customer.'

Gary Bennett estimates that there are probably 20 other companies out there competing for the same business. All the same he maintains Hawco is unique.

'If you look at a transactional level we compete with those competitors all the time but what they don't have is our operational and strategic focus.

'We are not purely a director-led company. We are led by our team and we are only as good as our team. Everybody in the organisation gets the chance to input ways to modify our business. Everybody is invited to help us improve including our customers.'
'Yes, we believe in the A and B and C of distribution and giving the customer exactly what they want.'