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By Richard Trombly | Industrial Distribution: November 2002 Strong commitment to all its stakeholders is the secret to this Ontario distributor's growth Levac Supply Ltd. is a distributor that does 85
to 90 percent of its business in the industrial, construction and general
MRO markets while the remaining revenue comes from auto refinishing and
body shop supply. This may seem an unusual mix for an industrial distributor,
but automotive supply has been part of the business from the beginning. In fact, the Kingston, Ontario-based distributor
was founded in a two-car garage by Roger and Shirley Levac in 1965 to
service the auto refinishing businesses in the Eastern Ontario region.
The company has continuously grown and moved into its current location,
which included a 6,500 sq. ft. warehouse, in 1973. On the company's 20th
anniversary in 1985, it doubled the size of its headquarters. As the company became increasingly focused on industrial
and construction distribution, it didn't leave its original customers
behind. That's just not the way the company does business, says founder
Roger Levac. "We build long-term relationships with key
customers as well as with our suppliers and employees," says Roger.
"That sets the tone for how we do things." That's how the company first entered into the industrial
MRO supply business, he says. One customer requested a specific grade
of sandpaper from Carborundum Abrasives and Levac Supply contacted the
vendor. From that point on, a long-term supplier relationship was formed
and a major change occurred in the distributor's business focus. "The entire industrial business grew from
a single phone call," says Roger. "Automotive supply, however,
is still important in our business." Rather than making a complete shift from body shop
supply, Levac Supply grew the industrial business at a greater rate and
it continues to expand, says president Randy Levac, Roger's son. With
the addition of the construction supply segment of its business, Levac
Supply has become a unique, diversified distributor. "Much of Southwestern Ontario concentrates
on the automotive manufacturers and other heavy industry, while in our
region there are fewer of that type of larger industrial accounts,"
says Randy. "Large corporations form part of our industrial base
but our customers include a wide variety of other industries and commercial
businesses as well." Levac Supply services institutions, penitentiaries,
machine shops and many small to medium sized local businesses. Not only
is the range of customer diverse, so is the geography that Levac Supply
covers. Kingston is on the Eastern end of Lake Ontario
but the company serves territory from Trenton, over 50 miles to the West,
all the way to Cornwall over 100 miles east along the St. Lawrence River.
Its territory also goes north into the Ottawa Valley. To better serve this wide geography, Levac Supply opened a branch in Brockville, about 50 miles east of Kingston at the beginning of 2000. The Brockville area was in need of a full line industrial distributor committed to carrying a diverse and complete inventory on the shelf for the local businesses, says Randy. "That's what Levac Supply does best." Taking stock Levac Supply is a Specialty Tools and Fasteners Distributors
Assn. member, and as such, power and hand tools, fasteners, and other
construction supplies make up an important part of the business. As with
many other construction and general-line distributors, safety supplies
are becoming increasingly important. "Safety is one of the fastest growing [product]
groups," says vice president Mark Levac, Randy's youngest brother.
"It is a high priority with commercial and industrial accounts." One of the features that distinguishes this small distributor
is the way it executes its inventory management program, he adds. The
company doesn't simply provide and manage on-site stock through its VMI
program. "We drive home to our people that it is important
for them to maintain the highest service levels to make sure our customers
have what they need right at their fingertips," says Mark. "Whether
it is pencils or thousands of dollars in power tools, we must have the
product immediately available." Levac Supply's VMI program is flexible, he says. The
distributor has maintained stock in as many as 30 different places on
the manufacturing floor, at customer locations. Many of the automotive body shops take advantage of the
VMI services as well. It's no different than servicing large industrial
accounts, adds Randy. Mark says the distributor focuses on inventory management
and this led to developing key vendor programs. Mark says they work closely with these major vendors
and their sales reps. Levac Supply works to build stronger relationships
and partner with them in more ways than just selling its products. Involved in the community "We distinguish ourselves from many of our competitors
in that we aren't just a branch operation. We have been around long enough
to become a fixture in the community." says Randy. "We support
the local businesses and have been a strong sponsor of minor sports and
charities in the community. We believe in and support the management style
and ethics instilled in the company by our parents." Essentially, that foundation is to treat the employees
well so that they will treat the company well in return, he says. When
the people within the organization share the company's integrity, honesty
and ethics, the company can present this way of doing business to customers
and vendors, alike. One of the ways the company takes an active interest
in its employees is through profit sharing, he says. Though such benefits
are harder to afford, Levac shares its success with its employees because
it truly is its people that make Levac Supply successful. "Treating your employees like family is the heart of our success" says Shirley. On a daily basis, Shirley's philosophy is exemplified by taking an interest in employees, supporting their efforts to improve the business and emphasizing the importance of strong, dedicated team work. Mark and Randy are not the only family members to take
an interest in the business. Their brother Terry Levac is a manager and
facilitator of the company's VMI program and Roger's nephew Gaetan manages
the accounts payable. Sisters Michelle and Anne Marie and Mark's wife,
Erin, have been involved in the business, as well. "We are active in both STAFDA and Independent Distributors,
Inc., the largest Canadian industrial distributor buying group,"
says Mark. He is both a STAFDA and IDI board member. Both he and Randy
sit on vendor committees at IDI. Mark says active involvement in the industry
organizations is important to keep informed in areas outside of your own. "Otherwise you get lost in your own operations,"
says Mark. "STAFDA, primarily a U.S.-based organization, gives us
the perspective of U.S. distributors who are operating in similar situations
to those we face in Canada." An important aspect of IDI is that it allows smaller
distributors like Levac Supply to compete with national and multinational
distributors for national contracts, says Mark. Without a partnership
like IDI, it would be impossible for Levac Supply to even bid for business
from local plants under national contracts. Mark adds that IDI is a successful
and important part of their business. "Being part of this group allows us to compete beyond
our niche," says Mark. "It also allows the customers to partner
with niche experts." The cooperative teamwork philosophy is typical of the
way the company does business with all of its partners and stakeholders,
says Mark. In for the long haul Sales representative John Knapp agrees. He joined Levac
Supply in 1965 and helped the Levacs set up the original business. "We don't stand much on titles here," says
Knapp. "Levac Supply -- and the team -- are important to me, not
the job title." The Levacs value him and his decades of experience and
point out his leadership in sales. "Though it's relatively new to some businesses,
[Levac Supply] operated with a team concept from the beginning,"
says Knapp. "That is a large part of why the employees -- and the
customers -- are here for the long term." "Today, we must provide services to allow our customers
to purchase more efficiently and reduce costs, something which offers
more than lowest price," says Knapp. "We offer technical support
and training through strong relationships with our key vendors." Steady wins the race That sort of stability is important for companies like
nearby Bath, Ontario's Lafarge Canada location, says Lafarge purchasing
agent Walter Nuvoloni. The company is active in construction and aggregate
production. "Levac Supply is what I would call a reliable source,"
says Nuvoloni. "One of their greatest strengths is retaining personnel." He says Lafarge seeks to centralize purchasing through companies like Levac Supply where he can count on the consistency of service and a competitive price. In Canada, there is still an aim to buy locally.
He says he favors Levac Supply's strong Canadian product line and its
in-depth, grass-roots involvement in Kingston and the surrounding communities. Of course, on the day we contacted Nuvoloni, a
major piece of equipment at his plant broke down. An extended halt in
production can be costly, so in the end, product availability is essential.
He says he can rely on Levac Supply to deliver. Jim Graef says Levac Supply delivers more than
products for its vendors. He is vice president of engineering and technical
services for the consulting and training division of safety and fall protection
vendor Can-Sling/DBI Canada Ltd., in Mississauga, Ontario. "The big thing Levac Supply offers is excellent
support and the time they spend to work with us effectively," says
Graef. "The market for safety equipment is changing and the consumer
is becoming more educated, so distributors need to be more educated to
provide solutions." The big thing in Ontario is the new construction
regulations that were implemented in June, says Graef. "We offer
full-service training and Levac Supply was essential in bringing to market
our new training around these regulations and their impact on safety." He says Can-Sling/DBI doesn't have an office in
the Kingston region so Levac Supply's efforts to set up course dates,
market them and even arrange the meeting facility is invaluable and safety
sales have increased. As Levac Supply continues to grow, it plans to
remain focused on its solid foundation of values to face growing commitments. COMPANY SNAPSHOT
COPYRIGHT 2002 Reed Business Information in association with The Gale Group and LookSmart.
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© Copyright Richard Trombly 2003
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