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O F F I C I A L P U B L I C AT I O N O F T H E W I R E A S S O C I AT I O N I N T E R N AT I O N A L

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Encore Wire: a key to its ongoing growth story is logistics Encore Wire continues its incredible expansion at its 400+ acre campus in McKinney, Texas, where it has just completed its 720,000 sq-ft Service Center. The company has more than three million sq ft of floor space and nearly 1,400 employees. Below, Kevin Kieffer, vice president of sales and marketing, explains to WJI how such continued growth is possible. WJI: Encore Wire has expanded multiple times: was it more challenging building your new Service Center or mastering the logistics to make it work? Kieffer: Having expanded our campus in some fashion nearly every year since 1989, we have a lot of experience adding buildings, and we’ve pretty much got it down to a science. Although the Service Center (SC) is basically four walls and a bunch of racks, we are integrating some new systems, processes and technology to help increase our performance, speed and service levels. When it comes to the logistics side, the movement of everything, the art element takes over. For us, the single biggest challenge was this: how are we going to get finished product from the plants to the new SC?

such a large building would be on land we owned just north of our existing campus. In this location, it would allow for a smoother flow for inbound and outbound trucks, direct access to the main feeder roads and highways, and reduced on-campus cross traffic. It also enabled us to separate Kevin Kieffer shipping and distribution from the receiving operation for copper and other raw material deliveries. We can more efficiently and securely control campus access, while increasing our turnaround speed for trucks. To do that, we had to figure out what to do about Elm Street, the existing main public road that separated us from this northern location. WJI: How was that resolved?

Kieffer: We worked with the city of McKinney to acquire the existing Elm Street, and we paid to reroute a new road, which kind of snakes around the SC. That became the new public Elm Street, but we still had to get finished goods from the plants to the SC. So, by the time we moved into the SC in early May, we had implemented a first-ever Encore solution: a train system. It consists of a tug that tows up to five large carts. With each cart capable of carrying up to 10,000 pounds The “Encore Express” was the company’s solution to moving finished product. of finished goods, we can move 50,000 pounds into the SC in one load. The empty carts sit in designated loading zones in the plants and are loaded up by the factory workers. When full, WJI: How did you decide where to place it? the tug driver delivers the load to the SC and then returns to Kieffer: Our current Distribution Center (DC) is located pick up the next load. roughly in the middle of our campus. At the time we built the DC, the reasoning and strategy for its central location were excellent. Being in the center of our campus, it provided the shortest distance for transferring finished goods from the manufacturing plants into the DC for shipping. We used an overhead, automated conveyor system to cross the main campus street from two of the plants, as well as “yard trucks” to transfer products over to the DC. It was a well-oiled machine. Following extensive internal discussions, we realized we needed more capacity to meet customer demands and the fastest pathway to this would be to turn the existing DC into a new manufacturing plant. But now we needed a new DC, and the best place to put

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WJI: Does that system work well? Kieffer: This is a new experience for us, and we are still perfecting the equipment, as well as optimizing routes and improving on other plant-related logistics opportunities. From a process standpoint, it has worked as we had envisioned. It has increased our efficiency and speed, and I’m sure it will only get better. From the equipment part of the equation, we are in the process of perfecting the “Encore Express,” a nickname we gave the trains that I think will stick, to meet our specific needs and campus features.

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WJI: In terms of all the planning that went into this project, was it internal or did you have outside help?

aligned for the traffic and provides for a straighter route from the main road. In total we have two employee gates to get everyone in and out. We also have a first-class security team that manages campus access. We rarely have a back-up of cars at the gates.

Kieffer: We did it all internally. We’re a pretty lean organization by design, but we have all the right talent in the right places for these types of projects. Not only are we looking to design and build, but to design and build with WJI: We understand that your work is not done. our unique culture woven into every decision and action. Everything we do is meant to increase quality, speed, effiKieffer: Absolutely not. We are always moving. This is ciency, capabilities and our overall performance, which actually a two-phase project. The new SC to improve our allows us to be a better and more reliable partner to our performance is part 1, and turning the old DC into a new customers. We are all very dedicated to this philosophy plant for increased production capacity (Plant 7) is part 2. and we are extremely invested in each other as teammates. To expedite completing both projects, we started Plant 7 From concept to move-in construction before we even took about a year and a moved out of the buildhalf. We had weekly planing into the new SC. So, ning meetings with typinot only are we not taking cally two dozen people. a breather, but the same Project Manager Mike crew that built the SC is Kammerdiener led this now moving the constructeam, as well as a smaller tion trailers to the old DC, core team of six to eight of and there’s heavy construcus. He did a phenomenal job tion going on. As far as the as did everyone who particfuture, we’ve got plans that ipated. All of us would we can’t disclose here, but offer our input and insight. I can say that we’re not Two other key players who done. We’ve got plenty of deserve recognition are room, we’ve got plenty of Director of Logistics Matt land, and our financials are Killough and SC Manager solid, so we can support all An interior view of Encore Wire’s new Service Center. The Matt Meissner. They were of these capital projects. It’s company now has more than three million sq ft of floor space. superb contributors during a pretty exciting place to be the process to the realities right now. of operating the facility after the job is complete. They also handled the physical inventory move from the DC to WJI: One of the biggest limiting factors is getting enough the SC, while never stopping normal customer shipments. people. How has Encore done? The goal was to make this move completely invisible Kieffer: That’s a challenge we discuss daily here. Being to customers with zero disruption to their Encore Wire Texas, it can get a little hot here, and it seems like every experience, and they succeeded. I am very proud of how local air-conditioned restaurant is offering bonuses. It’s our people brought vision to reality and further enhanced really upon us as leaders and managers to continue to Encore Wire’s ability to deliver on our commitment to feed into these folks “why” they’re here. They are part of 100% fill-rate on every order and the fastest delivery a special place and a special time. You’re here to make performance in the industry. I am pleased to say that our wire, but also to be part of a team, to expand this culture of new SC will allow us to build even higher levels of trust service. Even as a big public company, we still do a lot of and confidence with our customer. business on a handshake, and we want our employees to be able to feel that. Once they realize the uniqueness and WJI: Speaking of getting in and out of the plant, does value of our culture and have that epiphany, they tend to adding more employees strain their arriving/leaving? stay. But again, we have to get them here first, and it’s not What about all the trucks? easy to find people who will work as hard as we do and Kieffer: Great question. We’ve got about 1,400 employget them to stay. So, by far, that’s our biggest challenge ees on multiple shifts, and the SC will account for about right now, but it also is a great opportunity as we continue 200 when fully staffed. With this expansion, we added to expand. We’ve got an internal recruiting team that does a new truck entrance/weigh scale operation that is just a great job finding the right people. Once they get them for shipping loads in and out. Empty trucks come in, full on board, we have a thorough orientation and training trucks leave. We have another entrance specifically for raw program aimed at not only teaching them the skills they material entry and exit. For smoother employee entries need to succeed, but also the inspiration to buy in to our and exits, we built a new North employee gate that’s better culture. n W W W. W I R E N E T. O R G

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