MFS Creates Opportunities in the Midst of COVID-19 Pandemic
National distributor pivots quickly to stave off financial impact of coronavirus shutdowns.
I’ve always been a very optimistic person. Optimistic people are also risk takers. We just see opportunities where others see issues.
Upset customer? Let’s prove ourselves beyond belief. Slow moving product? Try a new market and see what we discover.
There’s not much that will slow me down. I have to say, COVID-19 almost did. A national health pandemic was not something I’d ever considered, let alone prepared for. There isn’t a single business leader out there who entered this pandemic truly confident or left unscathed. I credit both my team and our prior experiences launching new products in new markets for how we’ve been able to weather the COVID storm and create opportunities where others saw issues.
Restarting in ‘Startup Mode’
At MFS Supply, we were facing a 30% decline in sales in March. I knew I needed to make moves to survive as a company and save jobs. MFS Supply is a national distributor of renovation and preservation supplies. We work with contractors, investors and property managers in both the single-family and multifamily space. Because we provide appliances, cabinetry and other construction materials deemed essential, MFS Supply was able to stay open and operating during stay-at-home orders.
But just because we were open, that didn’t mean our customers were. Real estate agents were pretty much shut down; HUD postponed foreclosures, leaving our preservation contractors in a lurch; new construction projects couldn’t find workers even if they were still operating; and multifamily renovation projects had to be deferred indefinitely. This pushed us into what I call “startup mode”—MFS Supply had to trim down, run lean and pivot into new areas that could support our company during this time.
Our approach for survival boils down to three steps. First, we had to accept reality. I had a beautiful and ambitious budget for 2020 to hit—and I had to accept that it wasn’t going to happen. If I clung to what we had planned for, we would fail.
Second, I needed to redefine winning for MFS Supply. We weren’t going to hit that budget, so what were we going to work toward instead?
And finally, I had to execute the plan. I knew it would take speed and discipline to align the business to our new goals and game plan.
Accepting Reality: A Pivot
MFS Supply had run a “Jan San” unit years ago that provided custodial supplies to businesses and cleaning crews across the nation. We had always stocked masks, gloves and disinfectants although they were never a hot product for us. We sold out of everything we had by the end of March. As an essential business with employees returning to work each day, we knew firsthand how important it was to get these products into our offices and warehouses as soon as possible.
So, we pivoted to personal protective equipment (PPE) and cleaning supplies—and we did it fast.
Our purchasing team started searching for new vendors, any vendors that were selling PPE domestically or overseas. This was the most difficult part. Our existing vendor network was sold out of PPE almost immediately. We had to start from scratch.
This new market for PPE was fast-paced and harsh. If we didn’t commit to 10,000 Lysol wipes in 15 minutes, we lost the deal. It was definitely a risk for the business. Big deposits were due upfront. We were working with new vendors who charged hefty prices that would lead to high costs to our customers. We had to jump in with both feet, win or lose, to take on this opportunity.
We jumped in. Our marketing team whipped up emails, e-commerce messaging and flyers on these new products as fast as possible and rolled them to the sales team. Our sales team hit the phones armed with the basics, and we told to run with it.
We transformed our fulfillment department in the warehouse to support this new program. We built out our shipping tables to include mini-bins for picking and packing to improve speed and efficiency. We quickly pushed lean practices into fulfillment, including new practices to reset inventory levels quickly and correctly.
Keep in mind, we did all this with minimized staff and many employees working from home. We also had the additional challenge of implementing COVID safety practices into both fulfillment and a warehouse. Building out six-foot distances, hand-washing stations, limiting contact between employees, wearing masks and gloves—all while launching this new initiative.
Here’s my optimism again: A silver lining to COVID-19 is we proved as a company that we can launch a new product program and get it out the door in record time. We definitely made mistakes—we were moving too fast not to.
For example, we thought we could get products out faster and more efficiently by stocking some PPE products in our New Jersey location and others in our Ohio location. Split the load. That quickly proved to be a logistical nightmare. We had to short ship orders; New Jersey had limited staffing, so their products took longer to get out; back orders piled up. But we learned, and it strengthened our program. It also put all hands on deck. I was back in fulfillment packing boxes on Saturdays and approving orders on Sundays. From my directors to support staff, we had employees from all departments getting trained on our fulfillment process so we could keep up with our customers.
Battle Scars
We still have our scars from COVID-19. This PPE program wasn’t a cure-all, but it certainly helped us triage. It saved jobs, and even created new ones. The risk paid off for us, and we’re doubling down for the future.
We’re continuing to build this program out to make it permanent at MFS Supply. States are opening up, and employees are returning to work. All businesses need masks, shields, wipes and more to keep their employees and customers safe. We’ve begun working with municipalities, schools and local businesses—all industries outside our normal scope—to provide these needed PPE items and safety equipment.
My team has started completing RFPs and bidding on PPE contracts. I’m working directly with our purchasing team to establish strong partnerships with factories in Mexico and Vietnam to source these products faster and at a better price point for our customers. We’re working with a great manufacturing company in California to start private labeling hand-sanitizing wipes. Even as the country opens up, the need for PPE and cleaning supplies will continue to grow.
A Win For Our Future
There is a ton of opportunity. COVID-19 has created a huge market that fast-moving, creative entrepreneurs can succeed in. We are testing out-of-the-box ideas that will add value to our customers.
For example, we’re building out PPE safety kits based on specific situations: a personal PPE/safety kit for travel, one for real estate agents showing houses, a home deep disinfectant kit with a chemical fogger for each room. We’re exploring subscription services for our multifamily customers so their properties get their custom order delivered to the property office each month. I’d be lying if I said this hasn’t been exciting. The challenge, the innovation, the ability to bring value to our customers—it’s what I get up for every morning.
