October 28, 2019
Power 50 2019: No. 11 Sai Koppaka & Alan Tabasky, BEL USA
Welcome to the 2019 Power 50 list, which ranks the most influential people in the industry.
#11 Sai Koppaka & Alan Tabasky, BEL USA
2018 Rank: 12
Sai |
Alan |
Title: President/CEO |
Title: VP/GM |
Industry Experience: 4 years |
Industry Experience: 24 years |
Known for their digital-first strategy, Sai Koppaka and Alan Tabasky have steered BEL USA, parent company of supplier BEL Promo (asi/39552) and Top 40 distributor DiscountMugs.com (asi/181120), to new heights, and solid peer scores have bumped the duo up a spot in the rankings. One of the market’s largest e-commerce players, DiscountMugs.com has increased its sales by 72% since 2013, reaching $214.8 million in revenue in 2018. BEL Promo is up 6% YTD in 2019. Mainstays of Counselor’s Power 50, Koppaka and Tabasky have positioned the organization as a major disruptor to the industry’s established order. In this Q&A, Koppaka and Tabasky discuss the increasing need for satisfying rush orders, the importance of being eco-friendly and the company’s reputation in the industry.
Q: What do you attribute BEL’s strong business to over the past 12 months, with DiscountMugs.com increasing sales to $214.8 last year?
AT: I attribute our growth to our passion: We want to be the best, period. I want us to have the best pricing, the best products, the best safety record, the best customer service and the best imprint quality. We have more work to do, but we’re doing it and it’s important to every single one of us. My general manager at BEL Promo, Susan Lewandowski, has as much, if not more, drive than I do. She came on about a year ago and is doing a great job with the team. It takes all of us to make a difference and move the needle, and we’re all in-sync and moving in that same direction.
Q: In last year’s Power 50 profile, you and Sai Koppaka mentioned that you were aiming to get orders sent out in just three hours by the end of 2018. Have you accomplished that goal? Why is that important for you?
AT: It’s important to push yourself and the organization to places you haven’t yet been. Sai had mentioned this as a stretch goal and it still is. There are many components necessary to realize this goal, and we need to strategically and methodically tackle one after the other. We’re getting there, but as we all know, there are many complexities that exist in all the imprint methods offered, but we’re working on it. It’s important to stay ahead of the competition. We can do this through technology implementations and efficiencies, which will eventually lead to this goal.
Q: What challenges are you facing as the company continues to grow and innovate?
SK: Tariffs, sales taxes and Prop 65 regulations have created a distraction this year.
Q: Do you feel the negative sentiment that used to be attached to the company due to having a distributor arm and one that goes direct to buyers is dissipating?
SK: Yes. We’ve been honest and transparent about the controls between the two businesses and it’s made a world of difference. Both our businesses continue to grow and we’re committed to continuing to exceed customer expectations and building an exceptional firm with the best employees.
Q: For a Top 40 distributor, DiscountMugs.com does a surprising amount of low-minimum orders. Why is that?
AT: DiscountMugs.com’s main customer base is the retail consumer market, B2C more than B2B. That business-to-consumer segment generally has a smaller order size than the business-to-business group. Being vertically integrated, meaning starting out years ago as a direct importer and decorator, DiscountMugs.com was able to market and produce small-quantity orders since it wasn’t purchasing from suppliers at the time, and the efficiencies it’s developed over the years made it both profitable and sustainable.
Q: How important is being eco-friendly to you?
AT: Being eco-friendly is important to us as an organization. We’ve taken steps within our organization to be more conscious of the waste we produce as a company. We’re minimizing production-related waste, whether it’s in scrap product or printing supplies, and in the office areas, we’ve minimized paper products wherever possible and encourage the use of reusable resources such as water bottles and ceramic mugs. We recently replaced the central air conditioning units in our office environment with more energy efficient versions. It’s an ongoing effort, and we can do more. But we’re moving in the right direction.
Q: What’s on the horizon for BEL?
AT: BEL USA is constantly in motion. We’re investing in both operational efficiencies through technology and equipment and in human resources, adding additional expertise in analytical, managerial and operational roles. We’re constantly striving to be better than we were the day before. We have big plans for this company in the coming years and are investing in both this industry and in our employees.
Q: Where do you see the industry in the next five to 10 years?
AT: This question is always tough for me. Technology is moving so quickly that what I believe is super cool today, will be replaced six months from now. I believe the industry will go through a transformation over the next five to 10 years. Technology is moving fast – print technologies are advancing quickly, which will lower the barrier to entry in printing. 3-D printing has come a long way and soon small orders will be produced on your kitchen table. Consolidation in the industry will continue to happen and will change the makeup of the Top 40 supplier and distributor lists. Who would have even thought two years ago that the global supply chain as we know it would be under the strain it is now? And who knows, some entity like Amazon may decide to really get into this space and give us all a run for our money, which is why as I said before, we strive to be better than we were yesterday. Only through continued improvements and investments can we ensure our survival in a fast-paced, ever-changing global environment.