P U B L I S H E D F O R T H E P E O P L E O F C R A N E S U P P LY
A message from Tom Frazer, President of Crane Supply
Welco m e t o 2 0 0 6 ! 2005 was an amazing year. As of mid-December, we were on track to ring up the following successes: n Core products to core segments, up $18.9 million n Target accounts, up $14.2 million n Crane manufactured valves, up $750,000 n E-commerce sales growth, up $3.3 million That is truly remarkable, and we have only been able to accomplish this by each and every one of us “thinking like a growth company.” Now, here are our goals for 2006: n Core products to core segments up $12 million n Target accounts up $10 million n Crane manufactured valves up $3 million n E-commerce sales growth up $2.5 million In 2005, our parent company celebrated its 150th year in business, and in 2006 the celebrations will keep on rolling as we at Crane Supply commemorate our 100th anniversary. We’re saying goodbye to 2005 and hello to 2006 with this special double-issue of The Crane Report.
We’ll profile our top three branches for most improved profitable sales growth (Hamilton, Toronto and Montreal), and meet the people who are leading the way. n You’ll learn a little about the history of Crane. n You’ll meet some of Crane Supply’s veterans, people who helped build this company. n You’ll meet some new members of the Crane Supply team, who help us continue to become a growth-focused sales organization. n We interview Derek McGee of Sayers and Associates, one of our key customers, and find out what Crane Supply is doing right. And much, much more… This is an exciting time to be part of Crane Supply, and I want to thank you all for making it happen. n
I wish you and your families a safe and happy 2006.
D e ar fellow Crane e mploye es ,
I hope you have found our 150th anniversary year to be informative and inspiring, as I have. We also now understand what we share as employees of this enterprise, including timeless values from our founder. These values have been the underpinning of our success, and in today’s world, our values are more important than ever before.
“everyone everywhere,” because we believe that our success lies in employees throughout our company being fully committed to continuous improvement, knowledgeable about our goals, and eager to contribute to our progress.
Now we look forward to the years after 150. At the July presidents meeting, our guest speaker, The Reverend Professor Peter Gomes of Memorial Chapel at Harvard University, gave us some valuable advice for the years ahead. Quoting Charles William Elliott on the occasion of Harvard’s 250th anniversary in 1886, Professor Gomes reminded us that “there is nothing more dangerous than a long and glorious past.” How true this is also for Crane. Our success in the past does not secure our future. We cannot rest on our accomplishments.
Our challenges may be even more difficult today than in days past, the opportunities more demanding. But we, too, must seize the opportunities that are right for us, and continue to improve what we do, and how we do it, building a better Crane Co., every day.
Remember that the history we celebrate was once our predecessors’ tomorrow. Those who came before us at Crane were never content with things as they were; they found and seized opportunities, and they worked diligently to create the proud history that we now celebrate. Crane’s success has always come from its good people, and we realize that you, more than any other factor, are the key to our continued achievement. When we talk about our future, we say
Professor Gomes also gave our company a birthday wish, in words that stand as a challenge to each and every one of us: “May your future be worthy of your past.” We, and those who follow us, will have much more to be proud of if we remember that our best days are ahead of us. Each of us, everywhere, must take advantage of the bright future that awaits. Sincerely,
Eric Fast President and chief executive officer, Crane Co.
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M a r k e t i n g came alive in 2005
2005 was a significant year in the evolution of marketing at Crane Supply. Justin Warren, who joined the company as director of marketing in January 2004, explains that national marketing initiatives are now beginning to pay off as the company increases its marketplace exposure and as Crane Supply embraces the power of marketing. “In the first half of 2004,” he says, “we laid the groundwork, as we took stock of where we were and where we wanted to go and began a serious, multi-faceted marketing campaign. Now we are reaping the rewards.” Key marketing initiatives completed during 2005 include: n Development of a disciplined product/market evaluation process
Introduction of the Strahman line of Wash Down Equipment n Execution of an e-commerce marketing campaign targeting n
new users n
Creation of a new series of Crane Valve collateral material, including a Valve Selection Chart, CD-ROM Catalogue and standardized valve submittal documentation
n
Development of In the Pipeline, a four-page newsletter for
Crane Supply customers n
Direct marketing campaigns to support valves, e-commerce and new products
n
Development of an advertising campaign promoting Crane Supply’s material traceability capabilities
n
Development of a Vendor of the Month promotion, linking the website to the annual desk calendar program
n
Exhibiting at various trade shows throughout the year, including Newfoundland’s Offshore Petroleum show, the Exfor show for the pulp and paper industry, and the Mecanex show in Montreal for mechanical contractors
Justin promises 2006 will be even more dynamic. “This is Crane Supply’s 100th anniversary and we’re planning special promotions and events to celebrate that fact. We’ll be reminding both our customers and employees that, while we are committed to being on the cutting edge of advanced customer service through technological innovation, we are also committed to honouring our long-established history and cherished values.”
New role for Jus t i n In July, Steve Deck, v-p sales & marketing, appointed Justin to the newly-created position of director, business development. He acknowledged that “In his short 18 month tenure with Crane Supply, Justin has increased our industry visibility and market awareness. His innovative, strategic approach has resulted in new programs that have enhanced our image and supported our strategic goals.” As the company continues to focus on growth, Justin’s priorities will be to identify, analyze, and execute a strategy to capitalize on new product and market growth opportunities. He sees his role as a natural progression from his work as national marketing director. “One of the really exciting things we’ve done recently,” he says, “is to introduce new product lines. Venturing into new areas serves two purposes. Obviously, we gain new opportunities to sell these new products to our existing
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Frank Justin Warren
customers, but also, by marketing these new product lines, we gain the attention of companies that we formerly didn’t sell to, giving us a new chance to sell them our traditional catalogue as well. That opens up really exciting growth potential!”
Letting the sales flow! Barry Tansley, director of valve sales, looks pretty happy these days. With good reason. Valve sales, especially for the key check and engineered valves segments, are booming.
Barry Tansley
“In 2005, we were shy of our goal of 20 percent valve growth overall, but five key lines we specifically targeted were up significantly,” he says. “In check valves alone, we are up 100 percent over the previous year!” He credits this strong growth, particularly in check valves and engineered valves, to having specific valve specialists on the ground.
Jaymie Vendramin
National Noz/Duo Check sales manager Byron Helmer and engineered valve specialist Jaymie Vendramin, are uniquely qualified to sell these lines. Byron knows the solutions check valves offer, and Jaymie speaks the engineers’ language.
Barry is especially pleased with the work Gobind Khiani, western regional valve sales manager, has Frank Belfiore been doing, making inroads with the oil and gas industry in Alberta. “In the five short months he’s been there, he has made a big impression. Prior to joining Crane, he had been to most of the valve manufacturing locations around the world. That lets him speak with authority.” The big news for valves in 2006 is the addition of six full-time inside valve sales positions to free the regional valve specialists to get out on the road more. At the national level, Frank Belfiore is now the CSEO technical valve support specialist. Based in Sudbury, he will work with Barry, Byron and Jaymie on national initiatives. “These moves demonstrate the company’s commitment to growing our valve sales,” says Barry. “We are grabbing the attention of our colleagues at Crane Valve North America.” n
Peter Rev
MRO racked up a great year with bigname clients in 2005
The MRO program finished 2005 above plan. Many factors contributed, says Peter Rev, director of business solutions. “Important contracts we signed in 2004 came into full swing in 2005. Even more exciting, these clients have grown into great partners. As they see the value of our proposals, they want to pursue further opportunities to streamline their supply chain exclusively with us.” An example is TransAlta. The volume of business with this account has grown substantially, as has their confidence in the programs that Crane Supply offers. They are now ready to explore new opportunities which will greatly expand the current pipe and fitting contract. Globally, Peter points out, mining, oil and gas segments are strong. “This definitely benefits our business as Canada is rich in resources and many of our key MRO contracts are in these sectors.” These strengths will continue in 2006. Here are just two of the major contracts that MRO signed in 2005: Agrium This company produces nitrogen, phosphates, micronutrients and fertilizers. In phase one of the contract, which covers four locations in Alberta, one in Saskatchewan and one in Ontario, they are switching to all of our core product material. In 2006, they will explore phase two of the contract which will include other product lines. Kraft This contract, which is part of a North American wide agreement through our membership in the supplyFORCE distribution network, has brought the company into some new areas, including sanitary stainless. To fulfill it, the company has reached an agreement with Alfa Laval to distribute all their parts, including replacement parts, pumps, and valves. Peter foresees good growth opportunities for this contract. Other contracts signed in 2005: Coastal, AET, GATX, Labatt, Tolco. In other MRO news, the company now manages Dow Chemical’s Approved Manufacturers List (AML). It has cleaned up the current AML (which included manufacturers that no longer exist or have expired documentation), monitors compliance with the manufacturers that are active on their list, and adds any manufacturer that is qualified based on criteria laid out by Dow. In 2006, we expect to be the sole supplier to the Amec temporary stores facility for the Bruce Power Nuclear restart project. “Amec was impressed with our Bruce Power Nuclear AML process,” says Peter, “and that brought us to the table. Amec is looking for Crane’s expertise in setting up their stores with AML approved product.” “I thank all of the MRO champions for their contributions in 2005, and I look forward to working with them all to make 2006 even better.” continued on page 16
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Hats off t o t h e t o p t h r e e ! In 2005, the three branches with the greatest profitable sales growth were:
1. Hamilton 2. Toronto 3. Montreal These three embody the values—teamwork, communication, attitude—that are leading the company to success. Let’s meet them.
Te a m wo r k m a k e s Hamilton number one
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Hamilton had record sales years in 2004 and 2005. How did they do it? Len Kraszewski, Southern Ontario regional manager, says that’s no mystery, “It’s teamwork,” he declares. “That’s the key to success.
staff getting the orders, to the warehouse staff picking and delivering on time through to the processing of invoices and collection by the administration staff.
“We monitor and take advantage of the opportunities as they present themselves. It’s everyone doing their job, starting with the sales
“We review key performance indicators such as on-time delivery, fill rates and quality to ensure excellent customer service.”
Hamilton’s warehouse team Back Row: Gerald Hertel, John Wellman, Dan Webb, Garry Gentry, Brian Moore, Miles Tompkins, Gary McGrory, Reg Golden, Fred Whitworth, Darryl Henwood Front Row: Geoffrey Henderson, Anthony Polmateer, Barbara Burns, Frank Webb, Doug Johnstone
London Brian Moyer, James Marissen
Cambridge Brent Driscoll, Rick Thomas, Hal Freund
Oakville Mike Czepiel, John Brady
Windsor Frank Eliasen, John Poirier, Tim Barber St. Catharines Joe Koller, Mercyl Yaroway
Jill Walker Hamilton’s office team Back Row: Rick Zehr, Keith Large, Des Corran, Pat Rinaldi, Stan Muchynski, Len Kraszewski, Karl Cookson, Garry Gentry, Scott Robinson Front Row: Carole Davidson, Steve Peskett, Peter Castellano, Donna Emery, Barb Collins
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Sarnia Robin McKay, Matt Williams, Chris Jones
Communication proved to be key for Toronto How this team turned things around to rank second in improved sales Toronto sales manager Glen Kellaway and operations manager Bernie Suriani are so in synch these days that they often finish each other’s sentences. Communications between the front and back operations weren’t always this good. Sales and operations took it upon themselves to improve the understanding of each other’s needs and functions and work together to improve processes and priorities in order to meet the needs of the customers. This led to establishing weekly operations meetings. Bernie, Glen and inventory manager Shane McIvor now sit down for weekly meetings to plan, address issues, and measure the branch’s performance. “We used to be reactive,” Bernie says, “dealing with problems as they arose. Today we are proactive, looking ahead, preparing for possible issues in advance.” “Today,” agrees Glen, “we work more as a team by sharing ideas and providing feedback from everyone at all levels.” The sales department communicates and stresses the customers’ needs based on incoming order requirements, the drivers provide valuable information based on their actual visits to the job site, and this is all shared internally so everyone gets to know each customer almost on a personal basis. The results show in improved sales figures and customers’ metrics. Notice boards in office and warehouse detail marked improvements in fill rates, on-time delivery and credit note reduction.
The focus on communications carries on throughout the branch. Bernie meets weekly with the day shift, the night shift and the drivers. “These meetings are really productive,” he says. “We’ve involved the guys on the floor in coming up with improvements in procedures. From their input we have improved the fabrication and receiving processes and set up a second truck run so that we can receive and deliver products the same day, as required.” Toronto operations is also working to cross-train people so they can cover a number of roles, and working with IT’s Don Hamilton to make the warehouse management system even more user-friendly. Increased communication also played a big part in the sales team’s increases. “We are doing a lot more reporting these days,” says Glen. He shares the daily sales reports with both the inside and outside reps. “That helps keep us all on track and focused.” Monthly sales reports tracking the top 26 core products sold to the key accounts are also distributed to the reps. The team is also using the Proactive Sales Initiative, an online database of accounts that show reductions in sales volume. Each week, inside sales people are required to log on and make five calls to find out what might be causing problems for those customers. They then document these reasons. Glen logs on, reviews their notes, and assigns an outside sales rep to follow up and address their concerns.
Eneo Catalli
Jack Bain
Sherry Ribeiro
Phil Mazzaferro
Monty Gale
Bernie Suriani
Shane McIvor
Kamran Shiekh
More on Toronto and Montreal following the Timeline centre spread Ali Qadeer
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Balwinder Rai
Jacob Pinto
1 5 0 ye a rs I n n ova t i v e histor y points t o a m o s t promising future A hundred years after Benjamin Franklin flew his kite in a storm in 1752 then invented the lightning rod, thus verifying the nature of electricity, young Richard Teller Crane arrived in Chicago. In that city, hogs and cattle were still driven through the streets but, for visionaries such as Crane, the future in Chicago—and across North America—was industrialization. R.T., as he was called, was in on the ground floor. Literally.
His first business was a one-man operation in the corner of his uncle’s lumberyard. The business itself: casting tips for lightning rods. On July 4th 1855, when most Americans were enjoying Independence Day fireworks, the 23-year-old R.T. was busy testing his lightning rod tip design. This single-mindedness was a mark of a man who only knew hard work (his first job had been in a cotton mill at age nine). Determination, coupled
CR A N E C O. Timeline YESTE
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YESTER
1855 On July 4, Richard Teller Crane (I832-1912) establishes the R.T. Crane Brass & Bell Foundry in Chicago. A one-man show, R.T. Crane works as a molder, furnace tender, metal pourer, casting cleaner, and salesman for his own company. Charles R. Crane Richard Teller Crane
Crane begins to supply engine parts for the emerging The first railroad industry and Crane shop focuses his business on the specialized yet basic industrial area of fluid control. R. T. Crane’s brother Charles joins the Company and becomes a partner.
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1888 Crane establishes a metallurgical laboratory – believed to be the first in the Midwest. This allows the Company to produce iron castings of uniform tensile strength, a highly unusual manufacturing capability for this period.
1912 Founder R.T. Crane dies on
January 8. His eldest son, Charles R. Crane, succeeds him as president. Crane engineers publish several research papers on the effects of high temperatures on the properties of vari-
with an extraordinary ability to foresee the rapidly changing needs of industry, is what has made the saga of Crane Co. such a story of visionary success.
the way by creating a steel foundry to manufacture fittings and valves strong enough to withstand high-pressure steam. R.T. passed away at age 79 in 1912. By then, he had strongly inculcated his sons, who in turn would inculcate their successors in the company, with a powerful set of values. These were about dealing fairly with both “customers and competitors” and about vowing to put one’s “whole mind upon the business.”
Crane Supply holds a special place in that history. Although it didn’t come into existence until 1906, as part of the “fluid handling” sector of the company, it traces its history to the early days of Crane Co. R.T. quickly moved from lightning rod tips to what he referred to as “the mysterious and scientific operation” of manufacturing cast iron and malleable fittings.
It was R.T. Crane Jr. who oversaw the early 20th century “revolution” enacted by Crane Co. in that most unlikely of settings—the household bathroom. Crane’s bathroom fittings were unprecedented, their high style and color schemes shown to wonderful effect in full color ads (also cutting edge, since color printing was in its infancy) presenting glamorous bathrooms such as consumers had never seen before. “Crane beauty in the open is matched by Crane efficiency in all hidden equipment,” stated the print campaign.
In the 19th century, however, R.T. had little time for daydreaming. His initial company, the R.T. Crane Brass and Bell Foundry, took off in leaps and bounds. He continually added lines whenever he saw a market need, whether that was steam heating or, during the Civil War, making brass fittings for cavalry and infantry. By the end of the 19th century, the demand for bigger and better steam engines meant that Crane Co. (by this point with branch offices across the country) led
R D AY T O D AY T O M O R R O W T O
TERDA D AY Y E S
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Everyone wanted Crane bathrooms. The high profile clientele included
YESTE
R D AY T O D AY T O M
ORROW
John B. Berryman becomes president of Crane.
1959 Thomas Mellon
ous metals, which form the definitive basis for subsequent metallurgical research.
Evans is elected chairman of the board, and his new management philosophy leads to the streamlining of Crane’s distribution network and a concentration on industrial manufacturing. Wesley Songer is elected president.
The practice of tapping and gauging steel flanges, later recognized as the Pipe Thread Standard, originates at Crane. A 160-acre site in Chicago is selected for a new, consolidated Crane plant; construction begins.
1914 Charles R. Crane sells his company holdings to his brother R. T. Jr. and pursues a career in diplomacy. Richard T. Crane Jr. is elected president of the Company. The Crane Fund is established as a private charitable trust to aid former employees (or their dependents) in need of assistance. Crane completes construction of the “Great Works” – its first truly modern factory, run wholly on electricity.
1931
R.T. Crane Jr. dies on his fifty-eighth birthday and bequeaths one hundred thousand shares of Crane stock to employees. Following the stock market crash of 1929 and the onset of the Great Depression, the Company reports its first operating loss, which continues for the next two years.
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YESTER
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King Hussein of what is now Saudi Arabia and architect Frank Lloyd Wright, who used Crane fittings in his Imperial Hotel of Tokyo. Lavish showrooms in Atlantic City and elsewhere displayed Crane bathrooms and drew buyers and envious gawkers.
intensive research in metallurgy, resulting in new steel alloys that met new needs—at that time primarily the needs of defence plants. Crane Co. earned numerous significant awards for its wartime manufacturing records.
In 1929, the Great Depression struck the world economy, and Crane too entered a very difficult decade. R.T. Crane Jr. passed away in 1931, at age 58, and was succeeded as president by John B. Berryman, a Torontonian. Berryman became the first of a line of non-family leaders who strove to maintain and develop Crane Co. With the depression strangling the housing market, plumbing sales were hit hard. But Crane persevered, and by 1934 was turning a profit again, its reputation untarnished. As Time reported in 1935, Crane’s “dominant position is based on its ancient reputation for quality.”
Not surprisingly, the company became involved in the next decade’s forays into nuclear research, developing valves for atomic reactors, and also in another burgeoning business—aviation.
In the 1940s, Crane Co. did a brisk trade with the U.S. Navy; before the war, the company manufactured 6,000 tons of steel valves a year; by 1942 they’d upped that to 25,000. But Crane Co. was never content merely to provide—it also determined the path of new products, with
E MORROWY
In the late 1950s came a dramatic shift in leadership with the arrival of T.M. Evans. His decentralization of Crane Co. into four autonomous groups in 1959, including the Crane Supply Company, led to a successful modernization of the business as well as extensive growth abroad: in Europe, South and Central America, Canada and Mexico. The 1960s were the dawning of the age of the multinational, and Crane Co. was at the forefront. The 1970s saw greater diversification, as Crane Co. moved into the cement business. Once again in Crane Co.’s history, the business moved
Y E S T E R D AY T O D AY T O M O R
S T E R D AY T O D AY T O M O
businesses that are facing increased competition and worldwide overcapacity. As part of its new business strategy, Crane sells its U.S. plumbing operations.
The Company’s distribution operations are more profitable than manufacturing. The assets of Chapman Valve Manufacturing of Indian Orchard, Massachusetts, originally established in Boston in 1870, are acquired.
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Crane shows its commitment to research and development and streamlining Resistoflex, a maker of corrosion-r processes by installing a computer-aided (polytetrafluoroethylene) plastic-lin design and drafting facility. fittings introduces IsoBend, a spec system that reduces the number o Hydro-Aire continues its 100 in a pipe run. percent win rate on all new antiskid braking programs with several new IsoBend is a 1994 Plant Enginee contracts. Year finalist.
1994 R.T. Crane
the Columbia space shuttle’s first voyage into space.
1984 Thomas M. Evans resigns
1981 The Valve Division responds to its fluid-control customers’ needs with new quarter-turn valves. To streamline customer service, Crane continues to computerize its facilities – especially at Medusa Corporation. Crane provides the braking system for
as chairman of the board after serving Crane for twenty-five years. His son, Robert S. Evans, is elected chairman and CEO. The Company announces a new strategic plan to build on its strength in special light-to-medium manufacturing and wholesaling distribution and to reduce its reliance on capital-intensive, cyclical, and commodity-oriented
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Resistoflex wins the largest U.S. PTFE-lined pipe contract in histo (awarded by Hoffman-La-Roche)
Mark Controls is acquired, bringi to Crane the Flowseal, Center Line, and Pacific Valves products and the Barksdale, Azonix, Dynalco, and Powers Process controls businesses.
ELDEC Corp., a manufacturer of electronic and electromechanica aircraft systems in Lynnwood, Washington, is acquired.
from a father to a son, and the company’s direction shifted accordingly: Robert S. “Shell” Evans, T.M.’s son, became chairman and CEO. He created a strategy that included a renewed focus on the valve businesses, and returning to the company’s strengths of highly engineered products and distribution. Complementary to this were new business units specializing in newer materials, such as fibreglassreinforced plastics, and products for lining pipe, fittings, hoses and valves. The 1990s bore the fruit of this wisely planted tree—becoming a decade of growth for Crane Co. In the new millennium, Crane Co. not only continues to develop and maintain its global operations, it has also embraced new shifts in thinking about corporate culture. Principles known as “Lean Enterprise” and concepts such as “Six Sigma” focus the company’s employees in new ways. And sharing intellectual capital in the company, through endeavours such as “Crane University” (a virtual learning
OW D AY T O M O R R
resistant PTFE ned pipes and cialty piping of flanges needed
er Product of the
Y E S T E R D AY T O D AY T O M O R R
center), has meant that best practices and business process developments are widely disseminated, reinforcing one of the company’s slogans: “Crane helping Crane.” A key leader in this initiative is the company’s current president and CEO, Eric C. Fast. His endorsement of founder R.T. Crane’s philosophy of square dealing, in tandem with nurturing a progressive and cohesive corporate culture, has made it possible for him to carry the Crane torch and also point it towards the future. Given that Crane Co. products are everywhere—from the Rockefeller Center to the Golden Gate Bridge, from Disneyland to Mars—there’s tangible reason to look back and celebrate the first 150 years… and to look ahead in anticipation of the 150 years to come. n
* Researched sources include: Crane: 150 Years Together
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Crane-Aloyco becomes Crane Valves Nuclear Operations, establishing a customer-driven, customer-focused organization.
Ventech Controls, Inc. of Houston is acquired, and the UK-based Laminated Profiles Ltd. is acquired and folded into Kemlite.
2OOI Eric C. Fast is elected CEO (in addition to president), and Robert S. Evans continues as chairman of the board. Crane completes a series of divestitures (including Crane Plumbing and Powers Process) and “internal acquisitions” to strategically link a smaller number of larger business units within the organization.
ory ).
ing
Crane acquires Xomox (the valve business of Emerson), expanding into the global marketplace with high-end applicationdriven valve brands.
s,
Saunders is acquired and renamed Crane Process Flow. With the acquisition of Saunders and Xomox, Crane’s position in the rapidly consolidating global valve industry is significantly strengthened.
f al Thomas Mellon Evans
National Rejectors adapts vending machines to accept the new euro.
R.S. Evans, Chairman of the board, and Eric C. Fast, President and Chief Executive Officer of Crane Co.
2005 Happy 150th, Crane Co.! 10
Toronto continued from page 6
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Cecil Adamciewicz, Jack Bain
Ken Fouracre
Brent Grummet, Monty Gale
Andrew Norville
Bob Parker
Katrina Delpeache
Caroline Ceh
Sudeep Sawhney
Gilbert Buckley, Conrad Sobon
Dennis Lisotti
Caroline Lake
Gord Noble
Dave Smith
Al Nash
Angelo Graziosi
Steve Nelson
Terry Duthie
Anita Rowinski
Jag Kandola
Ramesh Summan
Glen Kellaway
Sherine Williams
Chris Kereliuk
Theresa Taylor
The Montreal attitude: win, then Over the past year, things have turned around dramatically for Crane Supply Montreal. Regional manager Luc Beaupré says that, while there have been a number of procedural and organizational changes, the real reason for their newfound success is the attitude of the people. “It’s all about attitude,” he says. “It’s all about staying focused and not straying from the game plan.” The game plan is to concentrate on mechanical and industrial products. “This city,” he says, “is big enough to let us focus on core products.” The results support him; the branch ranks number three in terms of improved sales growth.
A first step in their remarkable turnaround was to reorganize the warehouse. Then they sorted out some staffing issues, added more trucks to meet client demands, and adjusted inventory levels to match order levels.
With this taken care of, they concentrated on the internal sales process, paying special attention to core products. “Our people worked diligently to expand our exposure in the market place,” Luc explains proudly. “They built relationships with cus“We have a good tomers, extended the delivery and order-taking hours, team and we enjoy and provided our clients with new systems, such as working together.” the e-commerce program and custom-packaging prod — Céline Ranger, ucts for delivery.”
A positive attitude marks everything they do. Whether dealing with colleagues, with clients or with suppliers, everyone works together to improve the way work is done.
receptionist
Once the Montreal team sampled success, Luc says, they wanted to keep winning. Each month as they made progress, they set their sights on doing better the next month. As Luc notes, “People like being on a winning team!”
Today and Tomorrow — Our People Our Strength
Alain Gauthier
Antonio Bourget
Alireza Aghababa
Guilaume Lamarche
Jacques L’Archevèque
Jean Larouche
Jean-Marc Ouellette
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Céline Ranger
Claude Dubeault
Jean-Pierre Meloche
Jean-Pierre St-Pierre
keep winning “It’s nice to be successful. The entire Montreal team is involved in the continuous improvement process.”
— Louise Duval, accounting support
Carl Clouston
Roger Leclerc
Robert Houde
Michel Désormeaux
Réal Gagnon
Don Newbold
Francis Gagnon
Ghyslain Dagenais
Gilles Laberge
Yves Sénécal
Patrick Ouimet
Louise Duval
Luc Beaupré
Martin Hudon
Martin Lignon
Yvon Émond
Lynda Gauthier
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Here’s the message from the new director of human resources
Wi t h e n t h u siasm, ambition, passion a n d c o n t r i bution, you can rise to the t o p a t C r a n e Supply! Graham Boyd joined Crane Supply as director of human resources in October. Previously, he was a regional manager of human resources at St. Lawrence Cement where he developed and retained top talent and implemented leadingedge programs in recruitment, performance management, employee relations, communications, and leadership development. These will remain a top priority for him at Crane Supply. “We are operating in the tightest labour market in over three decades,” he warns. “We compete not only with industry competitors, but also with the IBM’s and the Home Depot’s of this world to attract the best and brightest.”
Graham Boyd
The way to attract those people, he figures, is to let them know what a great job Crane Supply does in training and promoting its people. He cites Tom Frazer as an example. “Tom started in the warehouse and now he is the president. That is the message I want to get out there. If you come to Crane Supply and have drive, passion and ability, there is no limit to what you can do.” If Crane Supply is going to achieve its goals as a growth company, it must attract the right people and, once they are here, nurture and develop them. “It all comes down to selecting the right people who fit our culture and values and then retaining them through a solid human resources management framework.” Graham will reach out to the labour market through
advertising, attending college job fairs and, most importantly, through recruiting firms. “We need to track our success at training and promoting internally, and then share those successes with people who see the value in re-energizing their career with our organization.” What are his initial observations of Crane Supply? In distribution after 14 years in manufacturing, he has found one key difference: a total focus on the customer. “In manufacturing, a good part of your time is spent working on improving your margins through cost containment. Here it’s all about making sure you meet the customer needs every time and all the time. That is part of the daily dialogue of the company. I find it really invigorating”. He’s impressed, too, with the lean management environment. “It is really dynamic. There is not a lot of bureaucracy slowing things down. Everyone works full out. I like that.” “In terms of human resources services,” he says, “the regional managers are my main customers. They tell me what they need, and then I work to help them achieve it. That might involve some recruiting and prescreening of candidates, but not actually sitting in on all the interviews. “In terms of retention, I want to establish a low maintenance system.” He will create job profiles for each position, along with a profile for training and succession. These profiles will lay out concrete steps that the employees and their managers can take to the advantage of those people’s careers. Meantime, Graham has hit the ground running. He has double digit vacancies to fill across the company and is in the midst of planning a total human resources management system for 2006.
We l c o m e , I b r a h i m! The IT department welcomes a new member. Ibrahim Amin joined the IT team as PICK programmer in November. He will support and maintain customized PICK applications for the UNIX platform. He has a Bachelor of Science degree from York University,
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where he focused on systems, theory, programming, hardware and business applications. Ibrahim will work closely with B.J. Mitchell and the IT team to keep improving Crane Supply’s business systems solutions.
Ibrahim Amin
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B u s i n e s s a t the speed of light “Our competition may also offer online service,” says Rita Woodley, e-commerce sales manager, “but our customers tell us, again and again, that the level of service we offer is cutting edge.”
Rita credits the regional managers, the district sales managers and the sales reps with educating the customers about the benefits of ordering online. So what’s new in e-commerce for 2006?
And it shows. Online sales jumped $3.6 million to $15 million for 2005 and active online users jumped 87 percent. Of those customers, the top 10 make more than 95 percent of their Crane purchases online and the top 50 do at least 65 percent online. Adopting the .NET infrastructure in 2005 let the company offer a whole new level of service, with faster log-in times and the ability to download packing slips, quotes and invoices in real time.
The e-commerce sales goal is $17.5 million. n
The online catalogue will grow from 29,000 SKU’s to 85,000 SKU’s. That will be especially good news to the Midwest and Atlantic regions as it will add plumbing and heating to the products offered. n
Rita will develop and implement a training manual to better assist the sales reps when promoting the e-commerce advantages to customers. n
Rita Woodley
A client’s view
T h e m a n f ro m Sayers sings C r a n e S u p p ly ’s praises As one of Canada’s largest commercial and industrial contractors, Sayers and Associates Limited, with operations in Ontario, Quebec and Nova Scotia, rightly demands high quality from suppliers. It gets that quality service from Crane Supply’s Dartmouth office. Staff there have been dealing with Sayers on a daily basis for about nine years. In fact, according to Derek McGee, a Sayers purchasing agent, it’s more like on an hourly basis. “I’m placing orders with them multiple times a day,” he says. Sayers in the Maritimes is involved in mechanical contracting, specializing in plumbing, heating and ventilation in Nova Scotia, Newfoundland and Prince Edward Island. The company, which has more than 35 years’ experience, also provides entertainment, hospital and institutional contracting in other areas of Canada. Its notable projects include work on the Air Canada Centre in Toronto, the McMaster University medical sciences building in Hamilton, and various Glaxo Smith Kline research facilities. From Crane Supply, Sayers buys pipe, valves, fittings and fixtures. Derek places virtually all of his orders online as it’s the quickest
and easiest way. He says there’s only one word to describe Crane Supply’s website: Derek McGee phenomenal. “I do all online buying with them. Their commitment on the web page makes my job much easier.” It may be the company’s strongest attribute, he suggests. He also gives a glowing review of the company’s support staff. “If there’s ever been a problem, I’ve always had very good support. They have great personnel there, a really good group of people.” Are there any areas where Crane Supply could focus on improving? “Not many. Sometimes the getting of back orders to my job site is not as good as it should be. But that’s very rare. Their fill rate I’m sure is about 97 percent plus. If I place an order for 40 items, they have 97 percent plus on hand every time. “They’re very service-oriented, very obliging. They are one of my better vendors that I deal with in the Maritimes.”
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MRO continued from page 3
Se r v i c e Aw a rd s 40 Years
Des Corran – Hamilton
Wilmer Wilson Chester Ciesla
42 Years
30 Years
His first job was with Crane Supply in Hamilton, in 1964. He has been with the company in southern Ontario ever since.
Rene Papineau 25 Years Richard Thomas Brent Grummet Cliff Preston Barbara Burns Theresa Taylor Terry Duthie
After spending a year as a receiver, he moved inside to the heating department. In those days, Crane Supply still drafted heating systems for houses, a skill that Des picked up on the job from George Butler. He spent a few years as branch manager in St. Catharines before returning to outside sales and then inside sales in Hamilton. With 42 years under his belt, Des could easily retire, and he’s thought about it. However, “The challenge keeps me coming back,” he says with a sigh. “When you still feel you are accomplishing something, it keeps you coming back.”
Chester Ciesla – Edmonton 40 Years Chester Ciesla began his career with Crane Supply Edmonton in 1965 at the age of 20 as a warehouse person. While he sports the title of counter sales today, with the responsibility of making sure the customer always comes first, he has held a number of positions, including warehouse supervisor, purchasing and many others. “When I started, I was one of the youngest people, now I am one of the oldest,” says Chester. One of the things he has discovered is that working with the young people keeps him thinking young. Over the last 40 years, Chester has seen, and been involved in, many major changes at the company, including two moves.
20 Years Norman Scroeder Dwayne Windrum Josef Koller Patrick Murphy Don Plamondon 15 Years Jill Walker William Kallos Ian Dales William Webster Fred Whitworth 10 Years John Morgan Frank Eliasen Isaac Brinston Jim Brumwell Jack Bain
5 Years Floyd Moncrieff Ian Henderson Anthony Bertrand Murray Sokoloski Peter Rev Caroline Ceh Balwinder Rai Paul Rainville James Skerry Michelle Bourgeois James Cornish Azani Mensah Céline Ranger James Vickery David Smith Nenad Fistric
Why stay with one company for 40 years? “I enjoy the job,” said Chester. Although he and his wife Henrietta have discussed his retirement, Chester does not have a set age for retiring. “I guess when the job isn’t enjoyable anymore,” he said.
Rene Papineau – Cornwall 30 Years Rene Papineau, the branch manager in Cornwall, Ontario says weight is one of the biggest changes during the years since he started working for Crane. And he’s not talking about his own weight; rather he means the heft of the products. “Back then everything was heavier. Sewer pipes were made from cement not plastic; tubs were cast iron. We didn’t have a forklift here… we were the forklifts. Then, we had a strong back and a weak mind. Today the back is weak… and let’s hope the mind is strong.”
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Here’s Yves, the new man on the MRO team
Cliff Preston – Corner Brook 25 Years Cliff Preston in Corner Brook, Newfoundland, joined the company in May, 1980. “There were three of us here 25 years ago and there are still three of us. And we do it all – loading, serving customers, answering phones and ordering. I don’t know how we did it all back then with no computers. And the customers sure seem to be getting older… or maybe that’s just my eyes.”
Theresa Taylor – Toronto 25 Years Theresa Taylor in Toronto started working for Crane in 1962. Five years later she left the company to start her family but returned in 1980. She has always worked in claims. “When I started in 1962 we were using the cardex system – looking everything up manually. Computers and other technology are the biggest change around here and they’re a change for the better. Work is so much easier, faster and more efficient.”
Yves Latreille
Yves Latreille joined the MRO program as project manager in October. Previously at Praxair Inc. where he led a Global Procurement & Materials Management initiative, he is a six sigma green belt, and has a history in process analysis and strategy execution. His main responsibilities are implementing newlysigned MRO contracts, supporting MRO initiatives, and working with the MRO champions to capitalize on opportunities at existing accounts. He reports directly to Peter Rev, head of the MRO program. Yves and Peter spent his first month on a whirlwind tour, visiting key accounts across the country. Now that he has seen the company and had a chance to settle in, what are his impressions? “It’s impressive,” he says. “No one sits around waiting for work, and that makes for a very dynamic environment. It is go, go, go all the time. “I like that. You finish one project and get straight on to the next. It keeps you excited to come back every Monday morning.”
THE CRANE REPORT IS PUBLISHED FOR THE PEOPLE OF CRANE SUPPLY
615 DIXON ROAD TORONTO, ONTARIO M9W 1H9 If you have comments, praise, complaints or suggestions, please contact Claire Tipple by e-mail: claire.tipple@cranesupply.com or telephone (416) 244-5351 Si vous préférez recevoir Le Bulletin de Crane en français, prière de nous en aviser.