jacobs wholesale paper company app final dec.pdf · in march, 1934, adolph and dorothy jacobs, as...

JACOBS WHOLESALE PAPER COMPANY

“Quality and Service since 1934”

Adolph & Dorothy Jacobs, Our Founders


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Executive Summary

In the following presentation you will be introduced to a 71 year old, locally owned and operated, 3rd generation family business. Jacobs Wholesale Paper Company was nominated for the Chattanooga Area Chamber of Commerce Small Business of the Year Award. This presentation is developed around the four essay questions in the Chamber of Commerce Small Business Council Application. The more in depth presentation is followed by a section of Letters of Recommendation. The corporation profiled in these pages is a long term study in the American Dream. Founded in March of 1934 by Jewish Immigrants escaping the oppression of Eastern Europe, the company struggled in the early post depression years. The tenacious work ethic of the founders insured the success of the fledgling enterprise, and cemented Dorothy’s status as a pioneering woman business owner decades before it became widely accepted. Today the company distributes commodities in a highly competitive, highly consolidated market. The local competitors that Mr. and Mrs. Jacobs faced in the early years of our history have been replaced by larger regional and national players. Nevertheless, Jacobs has survived and thrived by exhibiting great adaptability in the markets which we serve. Important strategic decisions through the years, in particular the relationship with Network Services Company, have allowed Jacobs to maintain a very rare status for companies its age, the status of locally owned and operated! How many companies seven decades in business can make that claim in today’s acquisition environment? In these pages you will find that the core of Jacobs’ success lies in the values instilled by the founders. These values are alive and well today at the foundation of the way we do business. Integrity, loyalty, honesty, and an unsurpassed work ethic have enlightened the direction for our corporate ship through many turbulent and challenging times. We continue to rely on these principals as we steer toward an exciting future. In conclusion, we are most honored to be nominated for this prestigious award. We sincerely hope that our presentation shares the uniqueness of our history, the obstacles overcome, and the successes achieved that have brought us to this great honor.


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Table of Contents

Executive Summary .......................................................................................................... 2 Table of Contents .............................................................................................................. 3 The History of Jacobs Wholesale Paper Company........................................................ 5

Our Beginnings:............................................................................................................. 5 Adaptability: ................................................................................................................... 6 Today: ............................................................................................................................. 7 Tomorrow: ...................................................................................................................... 8

Our Corporate Philosophy............................................................................................... 9 Business Ethics: ............................................................................................................. 9 Loyalty: ........................................................................................................................... 9 Work Ethic: .................................................................................................................. 10 Quality Service: ............................................................................................................ 10 Community Involvement: ............................................................................................ 11

Our Management ............................................................................................................ 13 Letters of Recommendation ........................................................................................... 14

Victor & Helen Hanan, Our Leaders


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Description of Jacobs Wholesale Paper Company

Wendy leads our Customer Service Department.

Jacobs Wholesale Paper Company is a 71 year old, 3rd generation family owned, Chattanooga Based, industrial paper distributor. Our product offerings include nearly 3000 SKU’s in the towel, tissue, can liner, janitorial product, industrial packaging, and foodservice disposable categories. The primary markets that we service include Health Care, Educational, Industrial, Institutional, Building Maintenance, and Foodservice. We accomplish our corporate goals with the help of 17 total associates, in several key functional areas. Our distribution operation includes all warehouse and delivery functions, and is executed with 6 capable associates. Outside sales and inside customer service consists of 5 individuals. Our accounting and clerical functions employ 2 and management/ownership includes 3. We also utilize the services of a part-time, semi-retired custodian. Our service area includes a 120 mile radius of our facility in downtown Chattanooga. The majority of our customers are serviced through delivery on our company trucks. The few accounts that we service outside our economical delivery territory are delivered on common carrier.

Our professional sales staff represents Jacobs Wholesale in the market place.

Bill, Michael, John, Vic, Dan, & Janice.


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The History of Jacobs Wholesale Paper Company

The most defining aspect of our corporate identity is our rich history. Jacobs will celebrate its 72nd year of operation in March, 2006! As each successful year passes, we become even more proud of the sacrifice of our founders and their fruitful legacy. Our Beginnings: Our founders, Adolph and Dorothy Jacobs moved to the United States of America in the early 20th Century to escape religious persecution and find economic opportunity in this great land. Along with great freedoms, the Jewish immigrant couple found each other in Chattanooga, and they were married in 1934. In March, 1934, Adolph and Dorothy Jacobs, as newlyweds, purchased a small candy shop in downtown Chattanooga. Starting in business as Jacobs Candy Company, they realized that they could grow by adding a wholesale candy operation to their retail store. They borrowed an uncle’s station wagon, and while one watched the shop, the other would travel the rural areas surrounding Chattanooga peddling candy. Life in the early days following the depression was very difficult, and our founders shared stories of early hardships. As the business was beginning, Adolph and Dorothy did not have enough to eat each night for dinner. In order to purchase inventory for the shop, and to pay their vendors in a timely fashion, they would skimp on dinner for themselves. Until Jacobs Wholesale Candy Company became successful, our founders would stretch one can of tomato soup for a week by cutting it with milk and serving it with a crust of bread!

Helen Jacobs Hanan, in 1938 at age 3 At our 1st location, 925 Market Street.


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The next major milestone was the 1955 return to Chattanooga of the eldest Jacobs daughter, Helen, and her new husband Victor. With the new management blood in Helen and the natural sales prowess of Victor, the business thrived and grew, causing Jacobs to add products to their wholesale offering. Adaptability: In 1959, Fort Howard Paper found itself with a train-car load of paper delivered to a bankrupt local competitor, Archer Paper Co. Fort Howard made Jacobs’ management an offer they could not refuse. By negotiating special terms and pricing concessions, Jacobs’ management accepted the stranded product. With the addition of the new product line, Jacobs Wholesale Candy became Jacobs Wholesale Paper Company.

10th Street Location after the merger with Archer Paper Co.

The adaptability that the corporation showed in moving into the paper business in the 1950’s is one of Jacobs’ key long term success factors. Through the years, the company has adapted and evolved as business conditions and challenges have arisen. The nature of the competition has changed dramatically through our history, and we have always found our niche to survive the onslaught of larger national and regional competitors moving into the Chattanooga market.

Adolph Jacobs, in 1942, at our 2nd location

219 East 10th Street. Our adaptability is evidenced in the variety of product categories in which we have competed throughout the years. When school system purchasing was decentralized,


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Jacobs sold a full range of school supplies to the individual schools in the surrounding local counties. Before the advent of the large box home improvement retailers, we sold several truckloads of swimming pool chemicals to local homeowners each season. While we continue to sell office supplies as an accommodation offering, there was a time that Jacobs stocked a full range of office consumables from pens to folders to paper clips. Once again, the national, big box office supply retailers caused us to adapt and survive. Today: Today, Jacobs competes in a highly consolidated and competitive industry. For example, in the Away From Home towel and tissue market, three international suppliers control nearly 80% of all sales. This type of consolidation has had dramatic negative impact on our negotiating leverage as a local independent business. One of our greatest success stories to combat this has been our 1987 affiliation with Network Services Company, a national association of independent paper merchants. In addition to purchasing leverage, the organization also provides a national sales and marketing program in which Jacobs enjoys over half-million dollars in annual sales. Network Services Company is North America's leading distributor of housekeeping and maintenance supplies, industrial packaging, food service disposables, and related products. A $7 billion distribution organization, Network serves the health care, manufacturing, and facilities management and maintenance industries by consolidating the resources and strengths of more than 80 distributors. Operating nearly 400 distribution facilities throughout North America, Network currently provides the very best product selection and unparalleled customer service to over 750,000 customer locations. Through our association with this fine organization, Jacobs is able to offer both local service and national competitiveness. The decision for our local independent business to affiliate was driven by Michael Hanan, current General Manager, and third generation family member to manage Jacobs. Michael returned to Chattanooga to join his family business in 1983, and his wife Jan left her career in Physician Services to lend her energy and talents in 2001. With the Network association, and the third generation management in place, Jacobs today competes in two very different arenas. In our traditional operation, we provide value added, consultant services to our local healthcare, industrial, institutional, and foodservice customers. Our representatives are trained to solve problems in cleaning and packaging, and thereby add value to our customer relationships. Many late nights teaching a customer some floor care procedure, or special, same day expedited delivery of a necessary product, has created great customer loyalty for the company through our many years. More recently, Jacobs has entered into contractual distribution agreements as a Supply Chain Partner. In this role, the company adds value through providing contract fulfillment services to national account customers. The majority of this business is established through internet ordering systems that Network provides the customer. The vendor, Network, and the customer depend on Jacobs to provide efficient distribution


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services of the contracted products, and our compliance feedback has run consistently over 98%. Tomorrow: Jacobs plans to continue building on its foundation of success into the future. To this end, we have recently completed an acquisition in the janitorial sector. We hope to continue to evaluate acquisitions, and to grow both internally and through those means. In addition to acquisition and organic growth, Jacobs is branching out by opening a retail outlet for its janitorial offering. Named Janitor Source, the retail store will be located on Ringgold Road. Our goal will be to provide knowledgeable staff to assist smaller business and institutional customers with information on the proper procedures and use of the janitorial equipment and supplies that we represent. In addition, the shop will offer equipment repair and rental. Our goal is to open the first week in January, an exciting step forward into the brave new future for Jacobs Wholesale Paper Co. In conclusion, building on the proud history of our founders, the subsequent generations have been attuned to the changing market place and positioned the company to continue to survive as an independent local offering for distribution services. The vision of the current generations of management strives to leverage the corporation’s core competencies in order to create value for all stakeholders, and growth for the business.

Victor & Helen Hanan, 2nd Generation Michael & Jan Hanan, 3rd Generation


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Our Corporate Philosophy

Several critical attributes describe Jacobs Wholesale Paper’s attitude toward our customers, vendors, employees, and the greater community in which we are privileged to serve. Ethical business practices, loyalty to all of our business partners, work ethic that dictates earning what you have, and offering quality in product and service, all define who Jacobs Wholesale Paper has become today. As mentioned earlier, we have been fortunate to adapt to dramatic changes in the marketplace over our 71 year history, but these foundation principals of how we go to market, and how we conduct our business, have been staples that have contributed to our longevity and success. Business Ethics: In all of our business relationships we strive to conduct ourselves with the highest ethical standards. Our founder, Adolph Jacobs was fond of saying, “You can only beat a customer once. We’re in this for the long haul!” That continues to be an attitude we carry forward daily in many of our practices and procedures. If a product that one of our people has recommended fails to perform, we honor a “guaranteed sale” policy, and offer return credit with no questions asked. If a vendor miss-ships product to our benefit, we always bring it to their attention so that we can pay for what we received. In addition, Jacobs is a company that pays promptly for inventory received. We have discounted vendor invoices for as long as that has been a trade credit practice! Loyalty: The story of how Jacobs entered the paper business involves Fort Howard Paper Company, currently owned by Georgia Pacific. Jacobs has purchased consistently from this vendor since we began doing business together in 1959, and we boast a plaque in our office commemorating a 25 year relationship. That plaque is dated 1984!!! The following list indicates a sample of our long term vendor partners, and the duration of our relationships: Georgia Pacific Commercial (Formerly Fort Howard)---46 Years Heritage Bag (Formerly Himolene)---18 years Pactiv (Formerly Mobile Chemical Co.)---36 years Sweet Paper Company---21 years Dart Container Co.---31 years (Jacobs was the first distributor in Chattanooga to introduce Styrofoam cups) Solo Cup Co.---42 years Sweetheart Cup Co.---45 years We also enjoy great loyalty from our many customers. Several customers have done business with Jacobs for over a decade, or multiple decades. We feel appreciative that our service, product, and knowledge offering have engendered this level of loyalty. Loyalty to our employees takes several forms. We have enjoyed the long term service of several key individuals, who have been promoted in the organization as reward for their tenure and ability. Currently, three key positions, Warehouse Supervisor, Sales Manager,


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and Retail Store Manager are individuals that started with Jacobs in more entry level positions. Outside of the 4 family members, we enjoy three employees whose service exceeds 10 years, and 2 more that exceed 5 years. We are proud of the loyalty that these important contributors have committed to our company throughout the years. To reward our associates and to compete with larger employers in terms of benefit packages, Jacobs was once again challenged to adapt and evolve. Almost 15 years ago before the PEO industry had reached Chattanooga, Jacobs had sought out a co-employment relationship so that corporate benefits could be offered to our employees. These large company-style benefits today include Health Insurance, 401K, and a 125 Cafeteria Plan. Had we not sought out a creative solution with an employment leasing company, we may not have enjoyed the loyalty and years of service of our existing staff. In addition to providing corporate benefits to our employees, we strive to invest in their ongoing training. All key personnel have attended off site training seminars, many sponsored by the Chattanooga Area Chamber of Commerce. In 2006, Jacobs is instituting a Training Plan, being developed by John Pitts. Beyond the sales training opportunities, we invest in product knowledge schools, as well as warehouse management and forklift training. For the business to adapt and remain successful, our associates must be aware of the latest thinking affecting their functional areas. Work Ethic: Adolph and Dorothy Jacobs came in to work until well past the age of 80, often outworking their younger associates. That value system is alive and well in the corporate culture of Jacobs Wholesale Paper Co., where we dedicate long days to servicing our customers, and where management works along side the staff in a team effort to win. Mr. and Mrs. Jacobs taught us that hard work is rewarded in business, and we employ that effort every day to create value for our customers and employees.

Gerome stocking inventory with a smile!

Quality Service: If there is one aspect of our business that creates competitive differentiation for Jacobs Wholesale Paper Co., it is the quality of our service. Jacobs is blessed with many long standing loyal customers because of the dedicated associates who manage the details in


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executing the highest quality service. Whether in the implementation of a large supply chain contract, or the execution of a local delivery, Jacobs’ service offering continues to provide our customers the reason to return. And in those rare instances where there is a service issue, our entire staff employs heroic efforts to rectify the situation.

Warehouse supervisor, Mike Whittacre assists Sam in pulling an order.

Community Involvement: For a business to survive in the same community for nearly 72 years, there must be an understanding of giving back to the community that supports your corporation. Jacobs’ corporate citizenship takes two forms, active involvement and charitable giving. One of our long standing community involvement programs is the Christmas collection of toys for the Chambliss Home Children’s Shelter. This is an annual program at Jacobs, and we enjoy near total participation each year. We also have a year-round recycling program that benefits the Community Kitchen. One of our most fulfilling community activities came earlier this year when the Housing Authority circulated a request for individuals with trucks to help move Katrina evacuees into local area housing. Jacobs volunteered 2 trucks and 7 employees who gave up a Saturday to help move hurricane families. We worked hard as a team, and when the day came to an end, we had helped furnish and move some 15 families! The team benefit of giving back to the community was palpable in our business for weeks after the volunteer day! In terms of charitable contributions, Jacobs consistently supports any number of local agencies with cash or merchandise contributions. We have recently supported the Chattanooga Chamber “Tell the World” Campaign, the United Way, Teachers Depot, GPS Visions, Chattanooga Food Bank, and the Katrina Relief effort. In addition, we often negotiate no-charge merchandise to support our non-profit customers in their charitable events. For example, participants in the Eastman Fun Run in Kingsport, which supports medical research, have enjoyed a post run spaghetti dinner on Jacobs’ disposables for the last several years, and the UTC United Way Auction benefits from household products donated for auction.


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Our Drivers are Ready to Serve Mike, Tim, & Sam


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Our Management

Victor Hanan, CEO:

• Joined the company in 1955. • Still top sales producer. • Enjoys customer relationships decades old.

Helen Hanan, President:

• Joined the company in 1955. • Manages Accounting Functions. • Lead Purchasing Agent. • Served as first woman officer on Bnai Zion Congregation board.

Michael Hanan, General Manager:

• Joined the company in 1983. • Oversees all aspects of the business. • MBA from University of Michigan. • Leadership Chattanooga Alum. • Active in Bnai Zion Congregation.

John Pitts, Sales Manager:

• Joined the company in 1995. • Manages outside sales force. • Dale Carnegie Alum. • Served several years as Deacon at Ringgold First Baptist.


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Letters of Recommendation

Business and Community Leaders: Joseph Decosimo, Joseph Decosimo and Company, PLLC Mervin Pregulman Charles Lebovitz, CBL & Associates C. Eugene Shiles, Spears, Moore, Rebman, & Williams Trade Association Contact: Walter Dethlefsen, Network Services Company Customer Contacts: James Kreis, Girls Preparatory School Marsha Stone, Xpress Global Systems Randall Menard and James Clark, The Health Center at Standifer Place Robert Snider, UTC Facilities Management CJ Poag Earl Evans, Southern Adventist University

jacobs wholesale paper company app final dec.pdf · in march, 1934, adolph and dorothy jacobs, as...

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