This importer/distributor uses its long-term relationships to create company-wide efficiencies. Founder D.K. Kim explains.

Remaining competitive is the goal for all entrepreneurs, especially in today’s fast-paced business environment. But BP Industries, Inc., an importer/distributor of picture frames, mirrors, and framed art, has created a way to do just that.

According to D.K. Kim, founder and president, by building long-term relationships with manufacturers, retailers, and employees, Ontario, Calif.-based BP Industries has been able to create efficiencies in product ordering, manufacturing, and delivery, enabling it to build a widespread reputation for providing quality goods at low prices.

BP’s business philosophy is that customers should receive great value and high quality at very competitive prices. “Everyone in the company is motivated to work toward the same goal, which is complete customer satisfaction,” said Kim. “We will do just about anything our customers ask to achieve this goal.”

A large part of BP’s business is direct imports, meaning that as soon as the product leaves a supplier in Asia, it becomes the property of the customer. BP simply facilitates the purchase. Other customers prefer to claim the merchandise as soon as it arrives in the Port of Los Angeles. “Not all products need to go through our distribution center. Every client has different needs.”

D. K. Kim

How can a company in an industry challenged by a price war afford to provide such value? Efficiency. Most of the senior staff has been working at BP since day one, so they know how to get the job done quickly and with the least amount of resources. Kim added that the company has invested heavily in cross training its 40-plus employees. “If one person is out for a day or two, someone else can easily take over his or her responsibilities, and we don’t miss a beat.”

BP Industries is also not like other suppliers in that it helps customers choose merchandise that best suits their needs. “We don’t just take a ready design, turn around, and sell it to customers,” said Kim. What one customer likes, the other may not, so the company evaluates each sample product before accepting or rejecting it.

BP also works with a number of factories in Asia to create fashionable merchandise specific to customers’ tastes. According to Kim, certain products, such as oak and mahogany frames, are always in style, but other products are subject to trends. “Even though we are not a manufacturer, we work closely with our suppliers to create merchandise that will complement our customer’s existing lines.”

To ensure customers are satisfied with the products and services they receive from BP, the company randomly visits retail outlets to study the product selection—its own and that of the competition—and to discuss any issues with the head of the frame/home décor department.

Kim states that BP’s customers are primarily large retailers, as the company has chosen to focus on large-volume wholesale distribution. “Sometimes one order can be eight truck loads. We get calls from some smaller boutique stores who want to purchase our products, but we stick with the mass merchants.”

Kim explained that the company he founded in 1989 was built on the idea that suppliers are equally important as customers. “We believe that building partnerships with customers and suppliers is the key in staying competitive,” he said. “We help our suppliers the same way we help our customers: by taking on additional responsibilities.” That may be in the form of financial support, business advice, or equipment to increase productivity. Investing in its suppliers’ business also allows BP more control over the quality of the final product.

BP is also building bridges between factories to help them share best practices, technology, and wisdom. “We are not creating competition—we are creating a strategy to cope with the trend of globalization.”

To cope with the trend of fighting global warming, BP is taking several steps to reduce waste. For instance, when the company moved to its current distribution center, it replaced all incandescent lighting with fluorescent, and it recently implemented an EDI system, eliminating paperwork associated with purchase orders. Everything BP uses for packaging is either recycled or recyclable material, and the company assists its suppliers in choosing earth-friendly products and finding ways to manufacture products resulting in the least amount of scrap.

“Even sawdust is accumulated and reused,” said Kim. “Our focus is always on improvement, not only in getting more business and building customer relationships, but also in becoming more environmentally friendly.”