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The Man Who Said No to Wal-Mart

By: Charles FishmanWed Dec 19, 2007 at 8:02 AM
Every year, thousands of executives venture to Bentonville, Arkansas, hoping to get their products onto the shelves of the world's biggest retailer. But Jim Wier wanted Wal-Mart to stop selling his Snapper mowers.

Excerpted from The Wal-Mart Effect, to be published by the Penguin Press, © 2006 by Charles Fishman.

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Wier traveled to Bentonville with a firm grasp of the values of Snapper, the dynamics of the lawn-mower business, the needs of the dealers, the needs of the Snapper customer, and the needs of the Wal-Mart customer. He was not dazzled by the tens of millions of dollars' worth of lawn mowers Wal-Mart was already selling for Snapper; he was not deluded about his ability to beat Wal-Mart at its own game, to somehow resist the price pressure. He was not imagining that he could take the sales now and figure out the profits later.

Jim Wier believed that Snapper's health--indeed, its very long-term survival--required that it not do business with Wal-Mart.

Every Snapper lawn mower sold anywhere in the world comes from a factory in McDonough, Georgia, a small town 30 minutes southeast of Atlanta. Coils of raw steel arrive on flatbed trucks every day at the old, nondescript building; brand-new fire-engine-red lawn mowers leave every day, loaded in 18-wheelers. The facility looks undistinguished, but it is energetically trying to defy the conventional wisdom about manufacturing in the global economy.

The Snapper factory has had an invigorating decade. Ten years ago, it produced about 40 models of mowers, leaf blowers, and snow blowers; now it makes 145. Today, robots do the welding, lasers cut parts, and computers control the steel-stamping presses. Productivity is three times what it was 10 years ago, and the number of people working here, 650, is half what it was.

Indeed, the productivity of every factory worker is measured "every hour, every day, every month, every year," says Snapper president Shane Sumners, who walks the 10.5-acre factory floor with comfort and familiarity. "And everybody's performance is posted, publicly, every day for everyone to see." It's a lot like Wal-Mart--which measures the number of items every checkout clerk scans every hour. Some of Snapper's dramatic productivity improvements, in fact, seem to come almost directly from the Wal-Mart playbook. These days, the Snapper factory operates in Wal-Mart time. It must, because it operates in Wal-Mart's ecosystem.

Ten years ago, at about the time Sumners came on board, Snapper had 52 regional distributors. It uses no distributors now--the company runs four regional warehouses of its own and sells directly to 10,000 independent dealerships. Ten years ago, in part because of the complexity of the middleman distribution system, Snapper carried a huge quantity of inventory. It paid to manufacture and ship thousands of lawn mowers--worth tens of millions of dollars--without quite knowing when they would be sold. Now planners come up with an ideal level of inventory for every model, for every region of the country, based on things like historic demand and the weather. The goal is to make sure every customer can get the mower he wants--while making absolutely the smallest number of lawn mowers.

Production at the Snapper factory is rescheduled every week, according to the pace at which mowers sell. A computer juggles work assignments and balances the various parts of the assembly line. The main manufacturing line for Snapper's entry-level walk-behind mowers--with 28 people--was recently charged with producing 265 lawn mowers in an eight-hour shift. The group hit the mark exactly. That's a new lawn mower, from loose parts to sealed box, every 109 seconds. "It's all a matter of seconds," says Sumners.

It's not hard to make a cheap lawn mower. A cheap lawn mower feels flimsy, sounds louder than it has to, and even when new, requires a mysterious, frustrating combination of choke, priming, and pulling to start. The cutting deck of a cheap mower is stamped from thin sheet metal. Making a high-quality lawn mower--even in 109 seconds--requires attention to detail and constant improvement, which seems surprising for a machine that doesn't evolve that much.

All Snapper machines, from the simplest walk-behind to the most elaborate riding mower, are painted one color: what Shane Sumners calls "Snapper red." In the factory, the finished chassis of riding mowers coast along slowly, dangling from an overhead conveyor as they approach a 20-foot-long pool of red paint. The conveyor track dips low, and the mowers glide down into the pool and completely disappear beneath the surface, then rise back up, gleaming red, before heading for a pass through a curing oven.

It's not quite as simple as dip and bake, however. Each mower is electrically grounded as it hangs from the overhead conveyor, and a slight positive electrical charge runs through the 16,000-gallon trench of paint. "So the paint is attracted to the metal and builds up on the parts and sticks very effectively and evenly," says Sumners. The process is monitored every hour--from the speed of the conveyor and the temperature of the ovens to the pH of the paint--along 115 parameters. "If you control the process," says Sumners, "you will get a good paint job."

From Issue 102 | January 2006

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Recent Comments | 12 Total

December 29, 2008 at 10:46pm by Joseph Harrison

Hmmm, i suppose my one question for him, and equally for the person now in charge, have you approached Ace Hardware or True Value? I deal with Howard's Ace for my hardware needs over Home Depot. Note the name, Howard's is just a local hardware store, but Ace gives them two major advantages, one, a line of private label products to sell, and two, it allows these small stores gang up and the big boys. It seems to me that this would be a great combination, small local places that would be comfortable providing support or outsourcing support to other local lawn mower specialists. This would give them the marketing scale that a store like WalMart does, while allowing them to maintain that same high level of service and quality that they're so proud of.

December 30, 2008 at 7:47pm by Damien Buckley

I love this story - reminds me of a similar encounter I had with Harvey Norman (Australia's largest furniture and electrical retailer) at the age of 26, only 12 months into taking over as Commercial Director of a company importing and distributing laminate flooring from Germany. They weren't happy with 'no' unfortunately though it certainly didnt harm our sales, which, driven through the specialist retailers, grew and grew on the confidence that we hadnt and weren't going to sell out to the big boys. I suspect history will show that Wier made the right call and Snapper will survive the storm of cheap trash washing up against its shores. His tombstone may well say 'here lies the smartest CEO - he wasn't afraid to say no…'

September 14, 2009 at 1:03am by Gary Traveis

Honestly, there is a growing segment of the population that is looking for quality and willing to pay for it. The sad part is that people can usually not make that choice by brand, because quality levels can vary all over the place within a brand.
I'm glad to see Wier and Snapper carrying the quality torch into the future!

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