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As a materials producer, your goal is to serve your customers, build loyalty, and improve profit margins. The challenge is that some customers — typically small-to-mid-sized businesses (SMBs) — are inherently more difficult to serve because their needs are drastically different from larger companies. Although SMBs comprise as much as 30% of your market share, meeting their needs becomes more time-consuming, and therefore less profitable, so entire markets are served at a lower priority.

Although achieving 100% customer satisfaction is nearly impossible, no company wants to alienate 10-30% of its customers. At the very real cost of losing business year over year, it’s extremely common for materials producers to focus on growing the most strategically profitable accounts. When any group of customers has a much higher cost-per-order or sit in a highly fragmented market, serving them at a high level simply isn’t profitable:

SMBs require more technical expertise and assistance than larger businesses with technical SMEs on staff, which often puts a strain on producer sales and tech teams.

SMBs typically order much smaller quantities, which results in higher costs to fulfill across labor, packaging, and shipping.

SMBs often need more hand-holding and more customer service touches to finalize an order.

Choosing not to cater to SMB needs is not about not wanting their business, it’s simply a business decision about where to deploy resources for the greatest profitability. Unfortunately, that comes at the risk of losing customers and developing a poor reputation in the marketplace.

Because SMBs choose vendors based on their performance in four key categories, the solution to the dilemma lies in finding a way to serve their needs without burdening your sales and tech teams. When producers can deliver across these areas, SMBs reward them with increased customer loyalty — and they share their experiences with their colleagues and their competitors. 

Operational Reliability — SMBs expect producers to consistently meet essential operational expectations including product quality, availability, and reasonable order fulfillment timeframes.

Price — For SMBs, the bottom line is critical, so producers must provide high-value offerings that are competitively priced.

Business Acumen — SMBs value producers who offer support in the form of providing advice, business acumen, and insights into emerging trends and best practices.

Caring — Although caring is harder to quantify, SMBs place a high value on building relationships with people who care about their business, success, and customers.

Within these categories are 18 additional criteria that SMBs use to evaluate their vendor relationships.&nbsp;

Our solution to the SMB dilemma is simple — we find a way to serve your SMB customers on your behalf the way you would if they were your top priority, leveraging industry-leading digital and technology-driven solutions to transform your direct-to-market strategy.

Better yet, we help materials producers increase market penetration across four key growth pillars:

Cross-selling to deepen market share within the existing client base.

Recovering historically lost business and dormant accounts.

Acquire new customers to drive growth in key markets or categories.

Leveraging digital solutions to engage new and existing customers and expand market share.

To learn more about how we can help your business unit expand market share in the materials or ingredients industry, contact <a href="mailto:mica.zuniga@xenonarc.com">mica.zuniga@xenonarc.com</a> today.

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The SMB Market and How You Can Expand Your Market Shares Through It

As the world gets smaller, the digital revolution continues to break through borders, simplifying everything from communication and education to sales and fulfillment. eCommerce is transforming the way we do business as well as the way we leverage the global supply chain and optimal efficiency.

Third-party channels can bring unique challenges when it comes to sales and service — limited product availability and misaligned inventory, long lead times for backordered or out-of-stock items, and sales reps that prioritize bigger accounts over small business needs. As a result, small and mid-size customers frequently express frustration and dissatisfaction. Regardless of which channels fulfills those orders, one entity along the value chain pays the price when it comes to market perception — the manufacturer.

So how can manufacturers recover from the challenges wrought by third-party channels acting on their behalf, rebuild their brand perception, and extend their brand promise equally to clients around the world?

How Digital Innovation is Disrupting Distribution

Although pre-2020, we were already experiencing exponential technological growth and digital adoption, the pandemic propelled digital innovation to the forefront out of sheer necessity, <a href="https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever">pushing us nearly a decade further than projected as more sales moved to eCommerce over brick-and-mortar storefronts.</a>

 Xenon arc was already leading the digital charge to break barriers and challenge long-held ideas of what is possible to create a digital marketplace for producers in the materials and ingredients industries. 

 Our approach blends a deep understanding and background of how these industries bring products to market with our existing focus on balancing global supply chains with regional demand. As a result, our proprietary eCommerce platform extends our producer clients’ brand promise to customers of all sizes, while simplifying the fragmented supply chain and reducing costs. 

 With the click of a button, a customer — regardless of business size — can order products in small quantities, connect with subject matter experts, and get recommendations that improve the trajectory of their business. 

 Channels that remain stuck in archaic models and non-digital mindsets simply can’t compete.

Ultimately, working with Xenon arc’s eCommerce solution positively impacts both materials and ingredients producers and their customers. Because customers of all sizes enjoy better service and improved order lead times. They also develop stronger relationships with the brand as a result. In turn, producers can increase market share by as much as 30% while decreasing fulfillment costs by millions of dollars. 

To learn more about Xenon arc’s industry-leading solution to bust through the limitations and challenges of highly fragmented channels, contact Mica Zuniga at <a href="mailto:mica.zuniga@xenonarc.com">mica.zuniga@xenonarc.com</a>.

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What are the Barriers to Third-Party Fulfillment and How You Can Overcome Them

After the last year, anyone who deigns to announce: “Digital is the way of the future!” will be met with an eye-roll and an incredulous “No kidding.” By now, everyone intimately knows that the pandemic forced the world to work remotely last year. Beyond that, we know businesses and consumers alike experienced a new version of what is possible for communications, e-commerce, and — when it comes down to it — managing the global supply chain.

Even pre-pandemic, a move to digital seemed inevitable, albeit “something we need to prioritize in the next 12-24 months.” Yet with 2020 online sales in the U.S. alone surpassing $791 billion and representing year-over-year growth of 32.4%, that inevitability is here. Yet, even if 2020 proved turbulent — to say the least, an earth-shattering move to digital doesn’t have to be disruptive to your business. 

Industries and companies that were already beginning to adopt digital saw far less disruption than those sent into the deep end with a sink or swim mentality. That’s because, when you think about it, digital just makes sense, particularly when you consider a global supply chain with multiple touches and moving parts. 

Anyone already on the leading edge of e-commerce — that is, directly connecting buyers to the products they need without needing to connect one-on-one with a sales rep — had a leg up on companies with more complex ordering processes. Add in the knowledge of existing pipeline opportunities, purchasing trends, and real-time forecasts — those companies were unstoppable.

What better way to get products into the hands of buyers than making it easier than ever for them to purchase and automating order fulfillment to deliver in record speed with less room for inefficiencies and human error? 

Imagine how much better you could serve your clients if you could adopt an Amazonesque model that came with instructions as simple as “Insert Tab A Into Slot B” to ensure a seamless experience. 

The reward potential is astronomical with potential cost savings and increases in sales, both in terms of millions of dollars. And yet, there are benefits like happier customers and a better market reputation that are difficult to quantify except for showing a potential market share increase of up to 30%.

Is There a Conflict Between the “Perfect World” and Reality?

Sure, increasing sales, lowering costs, and improving delivery time and efficiencies sounds incredible, especially when streamlining how you serve smaller customers who don’t order your products by the container-load. 

But, as a materials or ingredients producer, how do you ideate and implement these concepts AND retrain your entire global teams without changing everything about how you do business or alienating your most profitable accounts? 

 When the alternative is continuing to do business the old way, “because this is the way you’ve always done it,” and seeing no change, digitizing to improve market share starts to sound pretty good despite the disruption potential. 

However, the idea that streamlining your supply chain and adopting an e-commerce model has to be disruptive is as outdated as the Pony Express. Better yet, it’s not necessary to reinvent the wheel. Xenon arc has a proven track record of improving and modernizing how materials and ingredients producers take products to market. By starting small, we focus on fine-tuning processes before extending the model to more markets and, eventually, more business units to ensure you serve all clients according to your brand standard. 

When your priority is to extend your brand promise to all customers, including those with the most complex and exceptional needs, it’s essential to serve them where they are — online. By transforming your direct-to-market strategy to digital, you no longer force small- and mid-sized businesses (SMBs) to jump through hoops created by larger customers’ processes — typically long lead times, complex payment terms, and high minimum quantities. 

Moreover, as a result of simplifying fragmented markets, in addition to securing SMB loyalty, by listening to their needs, you might be surprised at just how much innovation they generate for your company. And perhaps even more surprising is how many of your larger customers express interest in jumping aboard the digital train. 

Ready to learn more about how Xenon arc can help you leapfrog your competitors to adopt digital and e-Commerce practices and capture a greater market share? Contact Mica Zuniga today at&nbsp;<a href="mailto:mica.zuniga@xenonarc.com">mica.zuniga@xenonarc.com</a>.

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Learn How to Minimize Disruption When Going Digital 

Like most big businesses, when chemical producers talk about growth, they’re usually talking about expanding market share by selling to more customers or even finding new markets. Simple math, right? More customers = more money. The thing is that finding new customers, while extremely important, also takes a lot of work. 

And, by putting the entire focus on new, new, new, many producers ignore the fact that they already have a really great market — people who are already customers and can probably benefit from other product lines. 

Companies don’t have to pound pavement to find these customers because they’re already in the proverbial rolodex. This method of cross-selling is insanely valuable to businesses who want to deepen their reach with their existing customer base.

It’s the Next Logical Step for Most Companies 

The normal customer journey looks something like this:

Customers find and vet a company who sells what they need. When that company delivers — and delivers well —  they’re glad to come back, and better yet, find more ways to work together. Sometimes this means buying more products, while others, it means finding new opportunities. 

This is true for most business units, because everyone loves having a trusted partner who prioritizes customer needs and looks out for them. 

However, it’s especially true for small- and mid-sized businesses (SMBs) because they typically don’t have a full-time purchasing team whose sole role it is to vet new vendors. This means it’s WAY more convenient to stick with a company they already trust. 

So companies making a real effort to expand sales within an already warm customer base frequently see significant growth and ROI more quickly in their existing market than they do within new markets.

Sustained success in cross-selling hinges entirely on building trust. Unfortunately, it’s an area where lots of manufacturers and producers fall short, especially when it comes to the SMBs in their customer base who place nearly as much value on the relationship as they do on value and quality.

SMBs have exceptional needs compared with larger customers with:

As a result, chemical producers place higher focus on serving customers that are more profitable which can mean longer wait times and high frustration levels for SMBs and other highly fragmented markets.

Curious about the 18 things customers value most when finding and evaluating new vendors?&nbsp;

Innovating to Build Trust and Cross-Sell Effectively

By now, it’s obvious that current norms in the chemical industry leave plenty of room for improvement — in terms of process and profit. And the answer lies in transforming the way producers bring products to the market to extend their brand promise to ALL customers.

This means some combination of speeding up order times, improving customer service, and lowering minimum order quantities. It’s a tall order for the way lots of chemical producers do business. And that’s where Xenon arc comes in.

Our game-changing model that uses emerging technologies to simplify the global supply chain and improve the experience for all customers. The results are transformational and frequently lead to innovations across entire business units for our producer clients.

In addition to increasing operational efficiency and overall profitability for our clients, our model delivers greater brand loyalty among their customers with exceptional needs. And these customers? They account for as much as 30% of the market. 

The way producers serve their core market segments — those who order a single product housed at a single warehouse by the truckload — may not change all that much. But then, it doesn’t need to — those customers already enjoy high levels of service. Then again, the insights we deliver have the power to increase efficiency, innovation, and profitability even for these ideal customers.

The bottom line is this: “This is the way we’ve always done it,” does not apply in today’s world. And while it’s always important to find new sandboxes (markets) to play in, chemical producers cannot expect to achieve without finding new product-market fits for their existing customer base. 

To learn more about how Xenon arc delivers an improved experience for non-core customers of chemical producers, contact Mica Zuniga at <a href="mailto:mica.zuniga@xenonarc.com">mica.zuniga@xenonarc.com</a>.

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Effectively Cross Sell Your Products to Fragmented Markets

There’s a difference between fads and transformations. Fads wax and wane relatively quickly — whereas transformations leave a lasting mark. The digital revolution is the latter. Although the pandemic rapidly accelerated digital adoption, the writing has been on the wall for decades. Digital is here to stay, and even more than that, it’s the new reality for the chemical and manufacturing industry despite our industry’s hesitance and often outright unwillingness to adopt new technologies. 

However, the companies that are willing to take a hard look at what’s possible are the ones that get to do more than simple want a bigger slice of the market share pie. Those are the companies that will come out on top as we emerge from the pandemic and the increasingly global supply chain.

Humanity has a history of leaving behind ancient history. Sure, we study it, we marvel at the way our predecessors did things — but for our trajectory for thousands of years has been a constant search to find better, more efficient technologies. Groups that refuse to join the forward motion get left in the dust.

If it hadn’t been for that meteor, who knows what would have happened to the dinosaurs — maybe they’d be walking, talking, and inventing today. Hard to say. Yet some in our industry resemble those giant lizards today — stuck in the mud and unable to adopt the latest technologies. 

Trust me when I say — you don’t want to become a dinosaur, relegated to history, especially with the long, storied history of many of the companies in this industry.

The thing about transformations and revolutions is that they change everything — and if you’re used to doing things a certain way, accepting and implementing those changes can be uncomfortable. However, it’s better to get a little uncomfortable now than to find your role — and your market share — buried and forgotten, a fossilized relic for the history books. 

So What Does Digital Adoption Look Like?  

No one can predict the future. However, looking to the past, we can say with certainty that anyone willing to rest on their laurels and find comfort in “the way we’ve always done it” will get left behind.

Digital adoption is unique in our industry because in many cases it’s the more fragmented accounts that drive innovation. It makes sense if you think about it — the markets with the most room for improvement are the ones where we’ll concentrate hardest on growth. And more importantly, they’re where we’ll see the biggest shifts — whether in product-market fit, innovative business process, or increasing profitability. 

All business units can learn lessons from streamlining and simplifying fragmented markets because digital adoption means so much more than virtual meetings:

The last thing producers in the materials industry want is to have increasing amounts of their market share carved away. And that’s where Xenon arc’s groundbreaking model comes in. We draw on a triple threat of industry knowledge, technological expertise, and digital experience to keep our clients ahead of the competition and improve the way they bring products to market. 

After all, we’re driving this train — and the conductor’s shouting “ALL ABOARD!” Will you join us? Or get left behind?

To learn more, contact Mica Zuniga at <a href="mailto:mica.zuniga@xenonarc.com">mica.zuniga@xenonarc.com</a>.

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There Is A (Digital) Transformation Happening In Our Industry, You Are Either Onboard Or You’ll Be Left Behind

Article originally posted on <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2021/08/23/how-to-flip-priorities-to-empower-your-team-and-improve-the-bottom-line-for-all/?sh=2f8e6dda8e71">Forbes</a>.

Paul Warburg, President and CEO at <a href="http://xenonarc.com">Xenon arc</a>, discusses how to empower your team and improve profitability. <a href="http://xenonarc.com">Xenon arc</a> is an innovative tech company seeking to revolutionize distribution in the chemical industry.

When we discuss innovation, we are often referring to new products, but sometimes valuable innovation comes in a form that is seemingly less tangible and quantifiable. For business leaders and entrepreneurs, upending the typical approach to people can be a critical factor in your company’s success.

For example, when I first joined my company in 2014, they had an innovative approach to business backed by market research and strong insights, but performance was falling short of potential. The individuals at the company were impressive in their acumen, and the priorities were the same as most tech companies: technology, process and people (in that order). I asked myself why a company with smart people, a smart business plan, smart tech and smart processes was not living up to its potential.

During my first few months with the company, I quickly began to notice how communication styles and company practices were affecting the bottom line. I saw an opportunity to become an agent of change and set out to transform the company culture into a people-first culture. Here are some steps business leaders can take to empower your team and improve the bottom line.

A simple first step you can take is to start transforming the “employee mindset” to a “shareholder mindset.” Discontinue the use of the word “employee” company-wide and replace it with the word “shareholder.” If you do this, it is important to walk the talk. For example, my company started a quarterly shareholder meeting wherein we provide total transparency on operations and finances to all shareholders.

You may want to revisit your vesting structure to deliver more tangible value to your shareholders as well. All of these big and small gestures are important ways to signal a commitment to change and directly link individual performance to company success.

It’s also critical to break down internal silos among people and departments. Put people into collaborative spaces to force communication and teamwork. My company has an often-used expression: “Don’t put yourself on an island.” This does not mean that a quick fix like shuffling desks around or having an open office environment is going to prevent “islands.” Instead, aim to be hands-on and tailor your approach thoughtfully.

As a starting point, talk to or survey employees at every level to understand how they feel. Facilitate meetings among teams that would benefit from increased collaboration. Try organizing team-building events during work hours that force social interaction in fun ways. Hold a show-and-tell (or “demo day”) where teams share their work and answer questions from other teams. The objective with show-and-tell events is to allow people to learn about the work that other teams are doing in a fun, relevant and interactive way. A true sense of shared ownership and camaraderie only happens when everyone has respect for their colleagues in other parts of the company.

Consider pivoting your hiring process to focus more heavily on identifying each candidate’s “superpower” and ensure you are putting them into the right role on the right team to amplify their individual contribution. It can be hard for people to evaluate themselves accurately, so it’s important to be thorough.

For example, we put our candidates at every level through six or seven interviews. The final round is a case study. This helps us evaluate how each person thinks, the depth of their training and where their natural gravitational pull is so we can put them in the right role where they will thrive. We conduct panel interviews where each interviewer takes on a different role to challenge the candidate. We watch whether they can control the room and how they deal with adversity. The specific questions we ask depend on the role or type of work we are considering the candidate for.

You’ll likely find that the “sum is greater than its parts” as you strive to stoke the strengths of your people and help them to create their own spheres of influence. This approach can lead to significant innovations as you enable all shareholders to pursue projects of interest alongside their day-to-day responsibilities.

Of course, hiring good people is one thing and keeping them is another. I’ve found focusing on three primary areas can help create a winning culture that keeps people around.

First, invest in each person’s future by giving them training and a career road map to succeed, whether it’s at your company or elsewhere. Second, actively engage each shareholder in the financial success of the company, ensuring they understand how their individual contributions fit into the overall picture. And finally, emphasize the importance of cultivating the whole person. This means valuing not just a person’s work contributions, but also encouraging them to pursue passions outside of work — and giving them time to do it. For example, my company has an extremely generous leave policy, and we only allow our shareholders to carry over a quarter of leave — the message here is that we want them to take time off!

If you implement a people-first approach, you may find that your company experiences significant growth. 

How To Flip Priorities To Empower Your Team And Improve The Bottom Line For All

The small business dilemma is real. Collectively, the SMB represent almost one-third of your potential market. However, managing those accounts and fulfilling them is time-consuming and can take as much time and labor – if not more – than servicing the other 67 percent.

You’ve got a dilemma on your hands and there are two mutually exclusive options you can choose from.

It leaves you between a rock and a hard place. You don’t want to lose market share to your competitors, and you don’t want to be known as a company that ignores the little guy. However, if you don’t make tough choices, you stand the risk of alienating your shareholders and sullying your brand — which is the last thing you want to do.

In a perfect world, you’d serve all your clients equally.

Ideally, you would have practices in place that allowed you to forecast and fulfill the needs of your smaller customers, a way for them to order when and how it’s convenient for them, and technical teams on standby to answer their questions. In doing so, you would also become known as the best company to do business with.

However, the world is rarely perfect. And more likely than not, you haven’t found an effective business model that allows you to serve every client equally.

Because your company must be accountable to its shareholders, your management team finds itself having to make strategic decisions about the accounts you can serve. The sad truth is that many of these smaller businesses are no longer strategic because they often:

They feel the divide — and they know that they’re not a priority. It’s frustrating to them because they want to feel valued and have a true partner. 

How can you serve dozens of small customers the way you want to?

The answer is to consolidate those accounts into one by riding the digital revolution wave so that you can simplify communications and order fulfillment. And, this is where Xenon arc comes in. 

Our proprietary and innovative business model bridges the gap between the new digital world and the way you’ve always done business. With the use of technology, we enable you to extend your brand promise to every customer, regardless of how complicated it is to serve them.

We take on your most challenge markets and effectively turn dozens of accounts into one by transforming the way you serve your customers. Using a mix of new technologies including e-commerce and digital marketing, we’re able to forecast what your smaller customers need and warehouse it in a single location to deliver the high-touch experience they want. 

By taking title to top-selling products and reducing the minimum order quantity for your SMB customers, we save producers millions of dollars in labor and fulfillment costs. And your once hard-to-service customers stand up and take notice — and they show you their very real appreciation.

Please contact Mica Zuniga at <a href="mailto:mica.zuniga@xenonarc.com">mica.zuniga@xenonarc.com</a>&nbsp;to learn how we can turn dozens of your most fragmented accounts into a single one.

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Turning Dozens of Accounts into One

The word “innovation” carries the weight of expectation, and it can be intimidating. But it shouldn’t be. As a business leader, a key principle that I espouse is that innovation doesn’t have to be earth-shattering — it can be continuous and include small improvements.

It can be innovations in sales and marketing. It can be innovations in supply chain. It can be innovations in product. It can even be innovations in operations technology, such as a custom modification to a backend system that noticeably improves the customer experience.

In my experience, there’s value in encouraging a much broader definition of innovation because it’s just as powerful in smaller doses.

Why is this simple mindset shift so important? Because if we change our perception about innovation to define it as continuous improvement on a smaller scale, then we can foster an environment within our companies that is more rewarding for our people while maintaining a critical competitive edge. It’s an approach that can prevent companies from resting on their laurels or getting complacent. And the beauty of this philosophy is that, because it’s incremental, it doesn’t require a large upfront investment in a major project. Instead, the investment is diffuse and your company reaps the benefits that snowball over the long term.

I’ve seen the value of this mindset play out while in my current role as CEO of a technology company in the chemical industry. We encourage our people to innovate in every aspect of the business, from supply chain to accounting. It’s not always sexy and exciting on the outset, but all the small innovations are what give us our competitive edge.

The key to doing this well is starting with a clear vision and strategic framework and knowing where you can and can’t make compromises. Then you can work on fostering an environment where smalls innovations can take flight.

For us, our mantra of “effective first, efficient second” has been the grounding vision. Our first priority is to be as effective as possible in meeting the needs of our customers. Because at the end of the day, the customers don’t care if you’re really efficient if the user experience is less than desired. And in our industry — the chemical industry — we have a complex supply chain that requires high-touch customer service and tailored solutions. Our customers need us to be a reliable partner because any hiccups in their supply chain are costly.

To satisfy this high-touch service model, we reverse-engineered the entire supply chain. We first focused on creating systems and processes that would be best-in-class for our customers at the expense of everything else. Then we tackled the efficiency part second, and that’s where the innovations happened.

We focus on driving what I call “substantial incremental efficiencies.” We were constrained by our value proposition of being effective first at all costs. This forced us to find ways to use technology to be more efficient within our inefficient framework. For one example, we tackled improving efficiency in our supply chain processes and technology without compromising the customer needs.

The way in which we’ve fostered innovation is part of our secret sauce. I’m relentlessly in pursuit of innovation and continuous improvement, and so this mindset initially permeated from the top down at our company. In my next article, I’ll share actionable ways executives can foster incremental efficiencies and small innovations.

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The Small Innovation Mindset

Xenon arc partnered to launch <a href="https://www.braskem.com.br/usa">Braskem's</a> first-ever consumer-facing e-commerce marketplace on Amazon. Through the partnership Xenon arc is providing <a href="https://www.braskem.com.br/usa">Braskem's</a> data-driven marketing and sales platform technologies focused on enhancing the way <a href="https://www.braskem.com.br/usa">Braskem's</a> engages online with its small-to-mid-sized clients. The online storefront features their polypropylene (PP) filaments for 3D printing in 1.75 mm &amp; 2.85 mm diameters, as well as their award-winning carbon fiber reinforced polypropylene (PP) filament. <a href="https://www.amazon.com/stores/page/EECD5E69-30FE-4F83-B713-86055DBDE6AC?ingress=3">Visit their online storefront. </a>

<a href="https://www.prnewswire.com/news-releases/braskem-launches-amazon-e-commerce-store-to-make-polypropylene-filaments-for-3d-printing-accessible-to-consumers-301434379.html">To learn more, read the full Press Release!</a>

Xenon arc reframes and refocuses fragmented processes that materials producers are currently managing internally; taking the strain and stress off of their operations and empowering them to redeploy their internal resources to core strategic initiatives that drive higher profitability for the organization.

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Xenon arc Partnered with Braskem to Launch Their Consumer-Facing E-Commerce Marketplace on Amazon

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