Somers, N.Y. — Pepsi-Cola Company is possibly best known for introducing "The Pepsi Generation" marketing concept. Because of this effective strategy, a whole generation of young people came of age drinking Pepsi, Diet Pepsi and other Pepsi-related products.
Within the minority business community Pepsi is also well-known for its support of and dedication to minority business development. One such example of this commitment has been the signing of a five-year, $75 million contract to purchase corrugated boxes from Integrated Packaging Corporation (IPC), a New Brunswick, N.J.-based minority-owned company. This contract makes IPC one of the largest African-American-owned businesses in the United States.
But Pepsi didn't sign this contract out of altruism. According to Fred Canady, the corporation's relationship with IPC's president and chief executive officer Joe Wilson goes back many years. "It was Joe's aggressiveness, his ability to see an opportunity and his ability to provide us with the service that helped us make this decision," said Canady, who is director of minority business at Pepsi-Cola Company.
The IPC-Pepsi story began in 1987, when Wilson began selling industrial supplies such as cleaners, towels and soaps to Pepsi's new headquarters in Somers. Also needed was packaging materials for the supplies, which Wilson offered. He supplied Pepsi's needs so well that when it came time to provide similar services to a small Pepsi plant in Teterboro, N.J., Wilson was invited to place a bid. "They had the need for our supplies and limited storage space," Wilson recalled. "I was hired as one of three suppliers to work with them." The other two suppliers, he added, were large, majority-owned companies.
Wilson provided more than cleaning supplies and cardboard containers. "He made himself available for our problems," Canady said. "If the manufacturing line stopped and it appeared to be because the boxes weren't sealed right, he was called and he came in immediately." At times, Canady continued, Wilson discovered that sometimes it was another supplier's boxes that were causing problems. Regardless, he was able and willing to fix the dilemma. Wilson's ability to go the extra mile eventually "led to more business for him, because he was willing to fix all those problems," Canady said.
Within six weeks Wilson became the sole supplier of the Teterboro plant. "I hustled my competition," he admitted. "I did that by being more attentive to the customer's needs."
About a year later, Wilson submitted a bid to supply a new factory in Piscataway, N.J. Pepsi, happy with his work, awarded him the contract. "They also gave me the responsibility of engineering new boxes for soda production at their new facility, and to work with their machine manufacturer," Wilson said. As part of the service, he maintained an on-site office at the plant so he could stay on top of the design, trial and testing of the boxes. "There was no problem for me to make adjustments like that to accommodate Pepsi," Wilson said. "I was always looking for those opportunities to help out."
During that time, Pepsi went through a reorganization, part of which involved streamlining the supplier base so fewer vendors could cover more areas. Wilson was concerned that these cutbacks would involve minority-owned businesses because many "minority companies weren't large enough to cover the regions," he said. Pepsi then made the decision to work with the suppliers they had on board and to help them grow. "I said that to grow, I'd have to buy a manufacturing plant," Wilson said. "They told me to go out and do it."
At that time, Wilson teamed up with Albert Fuller, who was a manager with Jefferson Smurfit, a company that provided Wilson the raw materials for his boxes. The two formed IPC, of which Pepsi was a major customer. In late 1994, when Jefferson Smurfit closed its New Brunswick plant, Fuller and Wilson bought the facility — and landed the large Pepsi contract.
One secret to Wilson's success is that both he and Fuller have been in the industry for a while "and he understands its subtleties," Canady said.
Wilson also went beyond just producing and delivering to being very service-oriented. Said Canady: "He'd actually sit down with the operators, the people who used the product. These are the line people that work at midnight. When the boxes didn't work for some reason, he'd be in here, making adjustments. We didn't force his products on anybody. People just demanded his service." To this day, Wilson added, he is one of six suppliers that plant managers know they can call any time of the day or night. "We'll get someone out there immediately," he said.
Wilson provides a good example of what can happen when a person goes the extra mile to keep a customer happy. Just as important is his willingness to give back to the community. "Buying this plant meant it wasn't closed and people weren't laid off," Canady said. "Joe is also installing a training program to help employees and has hired a minority-owned public relations company and travel agency to work with him. He's doing this consciously to create a win-win-win situation for every one. That's where he's a good role model."
According to Wilson, he got to where he is now through three things — patience, persistence and prayer. "It takes time to develop a rapport," he explained. "And as soon as you have the opportunity to prove yourself, you need to do so from a standard of excellence."
Furthermore, he said, prayer helps keep focus. "Sometimes we can lose sight of where we're going," Wilson said. "Prayer helps recharge the batteries and helps bring me back down to reality when I get so wrapped up in so many things."
Much is being said about the path to success for MBE suppliers, which includes creating a quality product or service, getting the foot in the door and providing on-time delivery. But as IPC proved, the supplier that goes the extra mile will be the one that succeeds.
"When you have a good supplier, you have a partnership," Canady explained. "It's not like when a person makes an order, sends it and it lands on the dock. The supplier needs to arrive with the order and stay through it to make sure it's working right. That's what leads to more business."
And that's what has helped Joe Wilson supply materials that will ultimately provide drinks for a whole new "Pepsi Generation."
