General category archive
When it comes down to it, the cost of manufacturing a high-quality product is the same for most companies producing equipment for the livestock and poultry markets. Most companies have identified the most efficient methods to build an anchor bearing, motor, feeder, nipple waterers, etc.
The real cost difference comes from the delivery of those products to the end user. The standard model of distribution, in our industry, involves a manufacturer producing a product line, warehousing it, and employing a sales force to establish a dealer network.
The dealer network stocks the equipment, maintains a storefront, hires salespeople, installs, and services the production systems in a local area for the brand of equipment they represent.
This particular type of distribution model has changed very little over the history of the livestock and poultry production industries. Each member of this distribution model is an independent business entity and is free to add whatever margins they deem necessary (or possible) to the final cost a producer pays.
Sold through a different type of distribution model, GrowerSELECT goes directly to livestock and poultry growers through our network of regional local stores. Because we own the distribution chain from top to bottom, we add only ONE MARKUP over our cost.
Our cost is based on finished goods plus ONE MARKUP vs. MULTIPLE MARKUPS from the typical distribution model.
Also, we would suggest that we are the low-cost producer for most products. Wait a minute; the first paragraph said the cost of manufacturing was the same for everyone.
True. But if a brand has a loyal dealer network, the pricing to the dealer network will not be challenged. A loyal dealer will continue to buy brand name products even if the cost is excessive.
Name brand motors are a perfect example of this. An auger or fan company buys a motor from a motor manufacturer, puts their logo on it and sells it to a local supplier. The local supplier sells the motor to the end user adding little value to the final price. A local supplier has few other options. Their volume of a particular motor isn’t high enough to go directly to a motor manufacturer, and they have little negotiating power with their chosen brand vendor. The brand company has little incentive to lower the cost to a loyal dealer network. In fact, a brand company can charge different prices in different geographical locations depending on market pressure.
Compare this with GrowerSELECT motors. Our network of over 70 store locations and turnkey construction business allows for large purchases of motors direct from a manufacturer. We forecast purchase amounts for each store location and ship directly with minimal warehousing cost. Local retail pricing continually drives us to buy at a more competitive price.
The conventional distribution chain is directed from the TOP DOWN versus the GrowerSELECT model which is driven from the BOTTOM UP. Lower pricing for comparable products is the result.
The GrowerSELECT distribution model also affects product responsibility. Because we interact directly with the end users, we deal directly with any problems arising with the installed products. We sell it; we service it, and the end user works with one company.
The traditional marketing chain allows room for some question regarding who is responsible for dealing with equipment failures when those problems arise. The manufacturer can blame poor installation, dealer system design, or a number of other reasons (excuses) for a product’s failure. A local supplier can blame the brand company for poor design or manufacturing flaws. The GrowerSELECT distribution system eliminates “finger pointing” and focuses on providing accountability to each and every customer.
Our customers produce commodities. The lowest cost commodity producer is always the most successful. Our mission is to provide our customers long term value at the lowest possible cost.
Ask yourself this question; “Are all the manufacturers, distributors, dealers, installers, and service personnel creating ADDED VALUE in the distribution chain I buy from?” If you hesitated while answering that question, take the next step by changing the way you buy and implementing GrowerSELECT equipment into your operation.
To contact a sales representative in your area or find our nearest locations to you, click here.
Hog Slat’s Romanian manufacturing operation, located in Arad, received ISO 9001, ISO 14001 and OHSAS 18001 certifications earlier this year. The audit and certification process was performed by SC MS-ISOROMCERTIFICATION SRL., a UKAS accredited auditing company.
Every process and business management procedure in the Romanian operation was compared to ISO 9001 requirements for quality management systems including; documentation control, record keeping, staff training, quality standards and operational conformance to the system. After implementation, continuous internal audits and an annual external audit will continue to monitor and improve operations.
Because of the ISO 9001 certification, Hog Slat’s European customers will see better quality products, improved scheduling and more reliable deliveries.
The ISO 14001 certification provides an Energy Management System to reduce waste and control energy costs.
In addition, the OHAS 18001 certification strives to create a safe work environment for employees and minimize production delays due to workplace injuries.
Congratulations to General Manager, Daniela Minda and the entire Romanian staff on achieving these certifications.
Hog Slat will be exhibiting at this year’s World Pork Expo with many new and further developed swine equipment products, highlighting Hog Slat’s GrowerSELECT product line.
At the show, Hog Slat will have a large variety of equipment on display in both the exhibition hall (Booth V165 VIB) and at the Hog Slat hospitality tent (Tent G234). Equipment that will be on display includes Hog Slat’s Grow-Flex Feed System, Grow-Disk Feed System, Slats, and an introduction to Hog Slat’s AirStorm fans. We invite you to stop by the Hog Slat booth to see what’s new at the show.
Enjoy FREE ADMISSION to the 2015 World Pork Expo, courtesy of Hog Slat. You may redeem your admission voucher by registering online at www.worldpork.org by May 28th and use voucher code HogSlat2015. Or, present a hard copy of our voucher (available through the Hog Biz, local Hog Slat retail stores, or your local sales contact) during on-site registration the day of the expo. Expo registration is located in the Animal Learning Center inside Gate 15.
Craving some good BBQ? Stop by the Hog Slat hospitality tent anytime during expo to enjoy Vinny’s BBQ, located in Dakota City, IA. Vinny’s will be serving lunch and dinner both Wednesday and Thursday of the expo.
The World Pork Expo is held June 3rd-5th in Des Moines, IA at the Iowa State Fairgrounds. Visit us at the show in booth V165 in the Varied Industries Building and Hospitality Tent G234. We hope to see you at the show!
Producers, industry leaders, and hundreds of agri-businesses have gathered this week in Des Moines, IA for the 43rd annual Iowa Pork Congress. Held at the Iowa Events Center, the Iowa Pork Congress kicked off on Wednesday, January 28th and will go through Thursday, January 29th.
This two-day conference attracts over 5,000 producers and industry specialists from not only Iowa, but across the Midwest – leading to a well-attended tradeshow and conference.
Producers can find feeding systems, ventilation systems, and flooring for swine production highlighted at the Hog Slat booth. This year at the show, Hog Slat is showcasing our GrowerSELECT line including a full feed line display, an interactive Grow Disk Controller, Sow Drops, and the GrowerSELECT Curtain Machine. New at the show is GrowerSELECT AirStorm Fiberglass Fans, fans that deliver superior ventilation performance to producers who demand the best value.
The 2015 Iowa Pork Congress will be another outstanding event going in the books! Thank you to all attendees that stopped by to say Hello! You can find us at the Hog Slat booth, number 301.