Company Report: TH Hilson Company
Reinventing chemical distribution When plans were halted by the recession, TH Hilson utilized all its strengths to improve sales and provide impeccable service

At the end 2008, Chicago-based chemical distributor TH Hilson found its five years of growth unexpectedly halted by the economic downturn – an all too common story last year. Most companies would admit that this past year has been a tough one. Although things are turning around, many industries have been hit hard.

What is exceptional, however, is how TH Hilson responded. Instead of hunkering down and cutting their losses, the company reinvented itself in the face of adversity.

“TH Hilson is dedicated to uncovering every opportunity we can to grow sales. We have a defined sales process, strategic plan and opportunity/target program. We are utilizing all of the strengths of our people and relationships that we have with our clients from the technical, marketing and purchasing side to provide the best possible service from our company,” says company President Lori Hilson.

REINVENTION AND IMPROVEMENT
While reinvigorating sales is essential, the recession requires you do more with less.  
During 2009, the company has worked hard to integrate its sales strategy into its CRM program – allowing it to focus and monitor customer’s requirements – and has been more focused on financial planning with strong emphasis on cash management, financial projections and inventory management

In addition to the CRM program, TH Hilson implemented a new phone system, incorporating Voice Over IP and caller ID for quicker response time and has upgraded software to stay up to date with technology.  

The company also expanded its marketing capacity, particularly in the area of e-campaigns. “We feel this is a powerful marketing tool that quickly gets product information into our clients’ hands so they can easily request samples and technical data,” says Hilson.

With a focus on additive components, the company is developing projects and connecting the resources of its principal partners to each other and to their clients. As the economic tide begins to turn, the firm is prepared to take advantage of new opportunities.

“Hopefully on the backside of a very difficult time in manufacturing in the US we will have a clearer picture of where manufacturing is heading,” says Hilson. “We will continue to look for opportunities that will make us a stronger partner for our clients and principal partners. It might be through acquiring another distributor, focusing on a new market or looking at creative ways that will allow us to be a vital, worthy, important partner.”

In fact, the company recently added a few new product lines to its offering of specialty chemical raw materials. Providing products to the Coatings, Adhesives, Personal Care, MWF/Lubricant, and Plastics markets, TH Hilson’s suppliers include Cabot, Clariant,  Dover Chemical, EPS, Floratech, ISP, King Industries, Lansco Colors, Micro Powders, Neville and Taminco among others.

“We feel that having a well-rounded product portfolio for the market offers more value to our clients, which in turn will uncover more opportunities for both our customers and principal partners,” says Hilson. “I am excited about what the future will bring and will celebrate our success in getting through 2009. I believe we are truly a better company due to the way we have re-invented our sales and marketing efforts during these tough times.”

OVERCOMING CHALLENGES
In addition to the economy, and perhaps because of it, the distribution industry continues to evolve, putting more demand on both the principal and the customer -  and thus the distributor. Customers and distributors are consolidating and there are fewer domestic customers and principals. Meanwhile, principals and suppliers are expecting more from distributors.

“Suppliers are turning to distributors to handle larger accounts that have previously been serviced directly by the principal. This can be attributed to the change in throughput because volumes have declined, which has led to more frequent shipments that distributors are more equipped to manage,” says Matt Krause, VP of Sales and Business Development.  
With less capital available, many clients have moved from stocking adequate inventory to a more ‘just-in-time’ approach.

“It has been a challenge to understand our clients’ inventory requirements, as they cannot provide forecasts and are truly operating ‘just-in-time’ with placing orders. We’re certain that this is not unique to us, but simply a reflection on the state of the economy in our industry,” explains Angie Sisk, Director of Operations.

Environmental issues are also a focus in the industry. While they can be a challenge, bio-based and green products are a growing market, especially in the personal care, household, industrial and institutional industries.

FAMILY BUSINESS
With more than 30 years of experience under its belt, TH Hilson has experienced industry changes before and is well equipped to do it again.

Lori Hilson has been with the company nearly 25 years, and has expanded its territory, developed new markets and formed a strong management team. In 2008, she was awarded the Business Ledger’s Entrepreneurial Excellence Growth Award, while TH Hilson Company was the 2008 recipient of the EPS/CCA’s Distributor of the Year Award.

The eldest child of company founder Terry Hilson, Lori was 10 years old when her father came home one evening and announced he was starting a company. TH Hilson was a family effort with her mother, Marilyn - a trained professional secretary -  assisting her father.

Lori now runs the company along with 20 highly-skilled employees including her sister Lisa and brother Todd. In keeping with the family atmosphere, Lori says all employees are treated like family rather than a having strict boss/employee relationship.

“We realize our employees are what make us an excellent organization,” she says. All levels of employees have incentive programs and work toward achieving their goal of better service to the customer.

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