Bell Electrical Supply was founded in 1988 by husband and wife team, Bob and Kee Baek. At its start, Bell primarily served electrical contractors. Now, the customer base has expanded to include universities, government agencies, municipalities and developers throughout the Woodside, New York area, which includes Queens, Brooklyn and Manhattan, as well as New York, New Jersey and Connecticut.
In 2001, the Baeks' son, Anthony Baek, MBA, president/CEO, took ownership and brought new energy to the business. Although he was a recent Cornell University graduate lacking industry experience, he was greeted by a supportive network of employees and sales reps who wanted to share their knowledge and teach him the business.
For the past two decades, Bell has maintained steady growth, increasing revenues 11% year over year. Since its founding, the company's customer mix has shifted considerably. It went from a 50/50 commercial and residential split to its current customer mix: 70% commercial, 20% municipal and 10% residential.
In addition to growing Bell beyond serving contractors, Anthony also expanded the company's presence in the marketplace by joining IMARK Electrical, becoming certified as a Minority Business Enterprise (MBE) and investing in Enterprise Resource Planning (ERP) software. Just recently in 2019, Bell implemented DDI System's Inform ERP, which Anthony said has been a game-changer for managing inventory, simplifying accounting and streamlining the ordering process.
Businesses that are MBE certified are majority-owned by minorities. As an MBE business, Bell benefits from government regulations that require businesses to maintain a certain level of MBE spend before they may be considered for government contracts.
"Becoming MBE certified was a strategic move," Anthony said. "It has significantly increased our access to new contracts."
As a small independent distributor, Anthony said the company's IMARK Electrical membership is an essential industry resource. "The executive level member networking groups allow us to bounce ideas off of each other," Anthony said. "And the rebates are invaluable and very substantial. By leveraging other offerings like Showcase and The Gateway to Growth Program, we really maximize our return."
Under Anthony's leadership, Bell's business has grown considerably. Today the company carries $2.2 million in inventory. But just like any business, the company is facing some challenges. For Bell that means discovering new ways to maintain growth, keeping up with ever-changing government regulations and remaining competitive in a marketplace that is dominated by large conglomerates.
"Small independent distributors are a dying a breed," Anthony said. "We are constantly looking for new ways to stay relevant. The opportunity to cross-sell and upsell remains strong. We are cross-selling materials like timers, wireless devices, controls and dimmers while continuing to provide traditional hard wiring."
In today's on-demand economy, there is a need for speed. With devices and apps delivering instant gratification, the standard is set for customer expectations. That's why Bell dispatches its trucks several times throughout the day to fulfill in-stock requests.
"Our customers want their order immediately, and that mentality has changed what and how much inventory we carry and how we run our deliveries. Twenty-four hours is too long to wait for a part," Anthony said. "Now, electrical contractors are just as anxious for their Amazon order as they are for electrical supplies—that's why we typically deliver parts within two to three hours. If a truck isn't available, we'll deliver a product via an Uber."
It's more important than ever that electrical distributors bring more to the table than a product. And that is exactly where Bell excels.
"Our success depends on our customers and our relationships with them," Anthony said. "My team is knowledgeable about the latest technologies and product offerings, which is more than Amazon can offer. Their know-how minimizes both product and labor costs and creates opportunities for customers. Our relationships further up the supply chain are another driver of our success. We closely partner with sales rep agencies and their respective manufacturers to create true vested partnerships. One of our largest vendors has coincidentally become IMARK's newest member, Cooper Lighting."
With its new ERP system, Bell offers an efficient way for customers to place and track orders, as well as manage inventory. "We free up time for them, so they can focus on their projects and can be more profitable," Anthony said. "We lean on our extensive network of manufacturers to help them get the products they want, rather than asking them to settle for in-stock items."
In a family run business, like Bell Electrical, employees enjoy a greater variety of roles and in turn are deeply committed to the success of the business. Bell's hiring strategy focuses on employing people who mesh with their approach to doing business—casual and personable. And it has worked. Employee turnover is very low, with an average tenure of 10 years.
"My focus is on the long-term success of the business, maintaining a commitment to quality and taking good care of our employees," Anthony said. "From newer employees to management, we take our employees' feedback seriously. Employees are the lifeblood of our company and this closeness translates to a passionate workforce comprised of people who genuinely enjoy coming to work. We treat our employees like extended family. I trust my employees wholeheartedly, and that trust is reciprocated."