Case study
Stepan Company differentiates its brand through frictionless chemical sample fulfillment
How a leading chemical manufacturer earned deeper customer loyalty by partnering with Odyssey Logistics
Client background
Challenge
In 2013, Stepan acquired the North American Polyester Resins business, from Bayer MaterialScience which had an existing relationship with Odyssey Logistics. At the same time, Stepan’s product sample demand and special requests within its surfactant business were increasing. The team struggled to keep up with the demand and increasing customer requests (i.e. multi-lot samples, expedited requests, special paperwork) from Stepan Millsdale, its primary flagship manufacturing site in Joliet, Illinois.
It’s impossible to overstate the importance of chemical sample fulfillment for chemical manufacturers like Stepan — the process of providing customers with small quantities of a product for formulation development, evaluation, and qualification before purchasing. The samples are necessary for evaluation — but, just as important, the speed and ease of the sample fulfillment process shapes a potential customer’s first impression of Stepan’s operations and its responsiveness. Customers want a seamless experience with their suppliers.
Given the competitive nature of the chemical industry where many other companies offer comparable products, this first impression is a make-or-break moment — an opportunity to prove a company can meet the needs of the customer.
Scaling up sample fulfillment — without losing quality or speed
Sampling is an important facet of Stepan’s marketing strategy. In 2016, the company took a long, hard look at its in-house sampling fulfillment process, performance metrics and conversion to sales and recognized several distinct challenges:
- Convoluted compliance processes: Complex and evolving regulatory frameworks made it challenging to have a consistent sample fulfillment process.
- Packaging problems: The company had difficulties adapting certain products to fit in smaller package sizes and had space limitations for storing samples.
- Lengthy delays: Stepan struggled to get samples out quickly enough to certain customers, causing dissatisfaction.
The complexities associated with international shipments, multiple carriers with different systems and requirements, and documentation kept growing. We looked at our performance metrics and our ability to serve and realized we were not meeting our customers’ expectations.
For Stepan, it was critical to enhance its chemical sample fulfillment process to enable further growth. However, with over 11,000 samples going out to customers every year, it lacked the internal capacity to take on this multifaceted challenge. To keep up with growth and exceed customer expectations, the Stepan team needed to find a partner that had both the experience and capabilities to address their concerns.
What makes a good partner?
Stepan was not looking for a simple outsourcing relationship with the traditional focus on reducing costs. Rather, the company needed a third-party logistics partner that could handle the complexities that come with handling chemical products and unique customer requirements.
- Transparency: Stepan needed to strike a delicate balance between handing off the responsibility for certain tasks without losing visibility. The company needed a full line-of-sight into every step of the order, inventory and fulfillment process.
- Compliance: Chemical manufacturing is highly regulated, with a complex latticework of global trade and regulatory frameworks and requirements. Stepan required a partner that had the expertise and could stay abreast of emerging regulations that could potentially impact shipping product samples to various countries around the world.
- Sustainability: Committed to sustainability, Stepan sought a partner that shared its values, providing alternative packaging and aiming to reduce carbon emissions when transporting samples.
- Cost-effectiveness: Any outsourcing relationship must ultimately bring assurance that the partnership will quickly deliver a return on investment (ROI).
Enter Odyssey
Stepan first noticed Odyssey Logistics in 2013, when Stepan acquired a product line that had already been working with Odyssey’s Global Sample Fulfillment team. Odyssey’s team had earned a reputation for excellent service and customer satisfaction, and the Stepan team took notice.
So, when Stepan decided to evaluate partners to help address their pain points and grow its business, Odyssey was a standout choice. Stepan’s financial team conducted its due diligence and compared Odyssey against several competing logistics partners as well as its own existing in-house sample fulfillment capability, demonstrating that Odyssey was best positioned to deliver on the company’s goals.
We made a formal decision that we would move a significant portion of our in-house chemical sampling to Odyssey Logistics and sign a strategic contract. Odyssey wowed us with the service levels they were able to guarantee in the contract, committing to clear response times based on package size and location.
Rapid results turn into a long-term partnership
Stepan immediately saw the positive impact of assigning its sampling process to Odyssey’s well-honed chemical sample fulfillment team. The company also rapidly recognized that Odyssey consistently exceeded the parameters of its service contract — offering Stepan creative ideas, cost-cutting interventions, and strategic advice.
We’ve been really impressed by Odyssey’s flexibility and responsiveness — and the team’s willingness to discuss new ideas with us as we think of how to continue to differentiate ourselves with our customers. We also rely on their expertise in navigating complex shipping requirements in certain regions, like customs clearance for shipments into Asia or Brazil, where regulations can be more stringent. Their experience and support ensure a smooth and compliant process.
Tapping into an extensive network
In addition to the production and packaging of samples, the partnership with Odyssey gave Stepan access to Odyssey’s unrivaled network of carriers, providing a flexible and adaptable logistics infrastructure to fulfill Stepan’s chemical samples.
This breadth allowed Stepan to secure competitive rates despite market fluctuations. The diversity of carriers proved particularly valuable when navigating global shipping disruptions, ensuring that Stepan’s sample shipments reached customers on time.
Odyssey’s carrier partnerships also helped Stepan optimize delivery routes and reduce transit times. Through Odyssey’s relationships and freight expertise, Stepan negotiated better rates and improved the reliability of its supply chain.
Delivering critical visibility throughout the process
Odyssey also met Stepan’s need for transparency and visibility, fully integrating its system for sample fulfillment with Stepan’s operational system. This gave Stepan real-time insight into inventory levels, sample fulfillment status, and shipping timelines.
With this visibility, Stepan could monitor key performance metrics, make data-driven decisions, and ensure samples were handled exactly to its standards. The result? More efficient operations, improved customer satisfaction and loyalty between Stepan and its customers.
Odyssey’s transparency extended well beyond system access. Odyssey regularly engaged Stepan in strategic discussions, sharing updates on industry trends, operational improvements, and market dynamics. These proactive insights allowed Stepan to establish new policies and enhance its sampling program.
Odyssey is particularly good at sharing industry information with us without compromising any detail about our competitors or other clients it has. So, when we're looking at different policies, Odyssey can give us an indication whether we'd be in-line or out-of-line with the market.
Achieving seamless compliance
With experience navigating global regulatory frameworks of all kinds, Odyssey was able to accommodate the stringent compliance requirements governing Stepan’s sample fulfillment process.
Odyssey’s comprehensive approach included proper labeling, bottling, and documentation to meet U.S. EPA and FDA regulations. Odyssey also managed production reports, ensured proper certification of all shipments, and monitored the safe handling and disposal of hazardous materials. This built-in compliance infrastructure allowed Stepan to focus on its core business without worrying about regulatory risk.
We were impressed with Odessey’s ability to handle and store our U.S. EPA-registered biocides and U.S. FDA-regulated nutritional products, along with support our annual reporting obligations.
A quick onramp to ROI
Despite initial uncertainty about outsourcing costs, partnering with Odyssey proved to be a cost-effective solution for Stepan. The partnership quickly delivered soft and hard cost savings, including labor savings and improved freight rates.
Odyssey’s ability to handle complex fulfillment tasks allowed Stepan’s internal teams to focus on additional time with the customer and less on addressing logistical challenges.
For instance, Odyssey helped Stepan negotiate a shift to gallon packaging for certain sample types. This change, implemented with Odyssey’s guidance, significantly reduced packaging costs. The cost savings extended beyond logistics, as Stepan benefited from Odyssey’s strategic insights on market dynamics and freight optimization.
The road ahead
While Stepan had a strong foothold within the chemical manufacturing industry, its partnership with Odyssey Logistics propelled it into a new stage of growth. Odyssey’s product sampling expertise solved Stepan’s first impression problem — creating a frictionless sample fulfillment process. In a 2023 survey, many global customers highlighted the responsiveness and ease of sampling as a key differentiator for Stepan — a vast improvement over previous years’ data and a result of partnering with Odyssey.
Along with this critical foothold in the market, Stepan gained a strategic partner that helped it think creatively about a myriad of issues and create more efficient processes across its organization.
As Stepan continues to work closely to address the unmet needs of its customers, it’s counting on Odyssey Logistics to not only continue the strength of sample fulfillment but also help it work toward more strategic goals.
Odyssey has been a consistent and reliable partner that continues to help us deliver a positive first experience with the customer.
Want to see how Odyssey’s approach to chemical sample fulfillment can help your company stand out?
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