Client had been manufacturing MIPA for a while but always struggled with its packaging requirements: specialty double-gauge steel drums and specialty grounding equipment.
CLIENT’S PAIN POINTS
1. Packaging of MIPA* (highly flammable)
2. No solid logistics operations to distribute MIPA
DAXX made the capital investments to purchase this equipment to allow Client to grow its market share with customers that required packaged material.
Even though MIPA was one of its core products, Client was unsure how it would continue to handle its packaging and distribution. Client was beginning to question the value of MIPA and whether it still made sense for it to offer MIPA in packaged quantities.
DAXX completely took over this portion of the business, handling all the packaging, storage and distribution to customers that could only take material in packaged quantities and smaller volumes. As a result, Client added volume that they otherwise would have missed out on.
More than a distributor, DAXX is a strategic service company:
Not only did DAXX service Client’s existing customers, but DAXX also found Client new ones, helping it grow its packaging business. DAXX then helped Client scale this value scenario (managing packaging, logistics and distribution) into other products, such as cyclohexamine. From there, DAXX advised Client on moving into different industries/markets and helped it expand into different countries.
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