Wholesale & Distribution International - Spring 2016 - 66


M&M SUPPLY

"We have maintained
a nice profit margin
when the rest of the
industry took it hard."
cated across the street: "a small oil service company called
Halliburton," Trachtenberg says.
The company over the next three decades steadily grew its
customer base until the McCaslands sold it to Trachtenberg,
who previously worked for a family owned oilfield supplier
that specialized in reconditioned valves used in oil and gas
and other pipeline applications. One change Trachtenberg
immediately made to the company's offerings was to carry larger-diameter valves and fittings, a move that allowed
M&M to begin working with pipeline and midstream energy
companies. Halliburton remains one of the company's largest accounts.
Under Trachtenberg's ownership, the company also

moved away from its previous practice of stocking products
specific to regional drilling rigs. "The heavy concentration
of business with the local drilling industry required heavy
inventory," he adds. "As rigs moved out of the area, that material became obsolete. In 2008, we essentially stopped servicing drilling rigs, diversifying our inventory."
The company in recent years also adjusted its approach
to inventory in an effort to control costs. Materials deemed
by the company to be slow movers have been redistributed
from each of its 12 locations to a central warehouse in Oklahoma City, where they are inventoried and made available to
each location.
These changes, as well as the company's increasing diversification into other industries, helped increase its revenue
from $35 million in 2006 to a peak of in excess of $85 million
in 2014. Although the national decline in gas prices has impacted M&M's revenues since then, "we have maintained a
nice profit margin when the rest of the industry took it pretty hard," Trachtenberg says.
Within the past year, the company has added larger fittings to its offerings and started to target industrial and mechanical engineering firms. M&M Supply is also now supplying Tinker Air Force Base in Oklahoma City. "We moved
a little outside of the oil and gas industry while adding new
accounts," he adds.
M&M Supply within the past year has also shifted from
sourcing domestic materials to importing goods, as its clients are looking to reduce their costs. The company is involved in imported container loads as well as acquiring imported goods from on-shore sources.

FUTURE OPPORTUNITIES
Trachenberg credits his management team and staff with
the company's success. "There's essentially a group of six of
us who run the business and make the majority of the decisions, and we have 12 guys who do a great job at the store level," he says. "I feel that for as many people as we have in the
company, we do very well having a flat management staff."
M&M Supply continues to seek new markets and opportunities while investing in its operations. The company recently upgraded its Microsoft Navision ERP software and
started rolling out warehouse management and automatic
barcoding systems across its locations. All of the company's
locations are anticipated to be fully functional with WMS
systems by the end of the year.
"This is probably an ideal time for us to make an acquisition, as some of our competitors are smaller guys having a
hard time in the current market," Trachtenberg says. "We're
always looking to grow, but don't want to get too far from
home. We want to remain a regional player." q
66 www.wdimagazine.com Spring 2016


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Table of Contents for the Digital Edition of Wholesale & Distribution International - Spring 2016

Contents
Wholesale & Distribution International - Spring 2016 - Cover1
Wholesale & Distribution International - Spring 2016 - Cover2
Wholesale & Distribution International - Spring 2016 - 1
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