Logistics firm needs to find its niche

Marc Schnell is a fixer.

Companies such as Quiksilver Inc. and Smashbox Cosmetics have hired his logistics firm to take care of problems with incoming goods. He has, to cite some examples, hired temporary workers to replace too-small snaps on a shipment of 10,000 shorts that came into a company from Asia, repair 200,000 kids’ lamps with faulty wiring and shrink-wrap thousands of individual boxes of cosmetics for distribution to exacting retailers.

But now Schnell needs a fixer himself.

Sales at his firm, Kelmar Industries in Huntington Beach, peaked at $1.5 million in 2007 and then slowed dramatically with the onset of the recession. Some clients pulled their logistics work in-house, others cut back. Some closed their doors altogether.

Schnell, who previously relied on word of mouth, is now trying to actively market his business.

“I need somebody experienced to tell me what direction to take,” said Schnell, 46. “I need some new fresh ideas. I am pretty much open to anything now.”

He’s prided himself on his ability to take on a wide variety of projects for clients. That flexibility helped him grow in the early days of his business, he said.

But now the company needs a more focused strategy, said consultant Jim Bierfeldt, principal of Logistics Marketing Advisors in Torrington, Conn.

“That’s the problem that many, many third-party logistics companies have — they worry about being boxed in so they kind of want to stay in the middle of the field,” Bierfeldt said.

“It’s kind of like the corner of Broadway and 42nd Street — a million cars and they are all honking and they all sound exactly the same,” he said. “I say, ‘Find your niche. Find what you are better at than anybody else, and then own that niche.’ ”

He had these recommendations for Schnell:

•Develop a clear marketing strategy. In Southern California’s crowded logistics market, a small provider without a clear niche, such as Kelmar, will have a harder time getting the attention of new customers.

Most of the company’s business is apparel-related, and most of the products it handles are imported through the port, the consultant said. So logistics support for apparel importers would be a logical focus.

•Help customers find your business. “In this industry, services are bought, not sold,” Bierfeldt said. Companies seek out a third-party logistics provider when they have a problem, such as the need for a warehouse or repair services for imported goods.

But Kelmar is not easy to find. Its website content is not written or set up to ensure that the company shows up in search engine results. Schnell needs to apply the basic principles of search engine optimization — using key words and phrases in the right places.

The company could also take advantage of free listings on Google Local Search and look into paid listings in specialty directories for the apparel industry and international trade.

•Create a stronger website presence. Kelmar’s website needs to sell harder. “Nail the market positioning right from the start,” the consultant said. Make the company focus clear. Spell out how it adds value for customers. Narrow and better define the list of services now on the site.

Include testimonials from satisfied clients and mini-case studies that show off the work Kelmar has done.

And feature Schnell more prominently on the site. His background provides a compelling reason for a potential client to call. “He speaks their language and knows their pain,” Bierfeldt said.

•Cultivate and expand existing contacts. Regularly communicate with contacts in a quarterly, quick-read newsletter. It’s a cheap and easy way to keep Schnell’s name familiar to contacts between personal phone calls or visits. The newsletter could provide advice on how to solve supply chain challenges and highlight recent Kelmar projects.

•Network more. Twice a month or so, Schnell should try to attend an event put on by one of the many organizations whose members manage the flow of inventory into and out of Southern California. He could also monitor and participate in relevant social network discussions online.

Schnell said he is ready to make the suggested changes. He’s also thinking of moving his business closer to Los Angeles, were many apparel clients are based.

“I’m not set in my ways,” he said. “If it’s time to rethink, reevaluate and retool, I am open to that.”

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