A major fire is often enough to put a company out of business. The same can be said of having two major customers go bankrupt.
Superior Dairy has faced both of these challenges in recent years. But despite the fact that its manufacturing facility was devastated by fire in March 2004, it still posted 8 percent growth and launched a technology-based sister company, Creative Edge, since then. It also continues to thrive in a market dominated by large companies with far more resources.
The secret to its success is simple: A solid plan and a commitment to customers.
“We have become very good listeners to our customers,” says Daniel Soehnlen, Superior’s president and COO. “We listen not only to their immediate needs but where they have pain. We especially listen to business hopes and dreams.”
Superior takes this information and develops product and process technologies that benefit its customer base, reduce the cost of goods and improve the customers’ internal operations.
“Our competition, good companies one and all, have a different business strategy,” says Soehnlen. “Despite our size or customer category, we have been able to develop our place and improve our position.”
A large part of the improvement has come from solid planning, which has allowed the company to navigate some difficult challenges.
“The overall business plan has been in place for several years,” says Soehnlen. “This plan was well developed before the bankruptcies and was well understood by our primary business partners. Despite the serious nature and financial impact of two bankruptcies by major customers, the business plan, and the new customer base that is part of this business plan, was extremely credible.”
When Superior needed support after the bankruptcies, suppliers, business partners and financial institutions were able to make the proper judgments based on the strength of the business plan.
These relationships also came into play when fire destroyed or drastically affected about two-thirds of the company’s manufacturing capabilities.
“Customers, suppliers and many other long-time business relationships remembered the occasions when Superior Dairy provided assistance to them,” says Soehnlen.
While the fire was disastrous, Superior’s resilience and planning will allow it to end up with a state-of-the-art facility.
“Although the basics of the business and customer bases were salvaged, this business plan permitted the reconstruction of both the new technology side and Superior Dairy’s dessert program,” he says. “Though insurance and related proceeds contributed to the rebuild, it did not completely cover expenses and construction costs.
“Regardless, the reconstruction did present a focused rebuild of the two most important business segments in Superior Dairy’s and Creative Edge’s business plan. This reconstruction is nearly complete, and these manufacturing lines are ready to serve the expanding customer base with the best available technology, including that owned by Creative Edge.”
The company also learned a lot about its employees and the community after the fire.
“There are a lot of good people at Superior Dairy,” says Soehnlen. “Superior Dairy has a lot of friends in the community; they are true friends. Companies are more than operating statements, balance sheets, structures and abstract entities. Companies have spirit. This company has the spirit instilled by my father and my uncle. Do what it takes. Never give up. Customers come first. People are important.”
Superior, founded in 1922, is a family-owned business in its fourth generation of family involvement. Surviving the challenges of time comes down to one trait: resilience.
“Companies and individuals have various education, skills, abilities and attributes,” says Soehnlen. “Although these all contribute, the single most significant trait relative to a company’s ability to survive the long term and the changes that inevitably take place is resilience. The company and its leaders have demonstrated the ability to come back time and time again because of its inherent resilient abilities. Regardless of leadership, competition, long and tedious technical development, the ability to come back has been the difference.
“Our company has had a business plan. This plan has been tested. The inherent resiliency, coupled with the commitment to not waiver from the strategy so many years in the making, is why Superior Dairy is here today and will be here tomorrow.”
How to reach: Superior Dairy, www.superiordairy.com
