Charles Wax’ most difficult moment as chief executive of WAXIE Sanitary Supply occurred in 2015 when a fire burned down the firm’s facility in Idaho Falls, Idaho.
While no one was injured in the early morning blaze, it was traumatic for both employees and customers.
“Our employees were worried if they’d have jobs,” Wax recalled. “We had 31 customers who had their machines in for repairs when the fire happened. They were worried if they’d lose their machines.”
Wax and his team got to work. Within five days, the company was operational again, working out of a local hotel and trucking in supplies more than 200 miles from Utah without delays in service. Within three months, the company dedicated a new facility and 31 customers received new equipment.
“We didn’t miss a beat,” Wax said. “We have to give super reliable service. We have to be really good at inventory management.”
WAXIE Sanitary Supply was honored in the large business category at the Business Journal’s 18th annual Family-Owned Business Awards luncheon on June 14 at Hotel Irvine.
Million Square Feet
The company, which is headquartered in San Diego and has its flagship warehouse in Santa Ana, is the largest privately owned sanitary supply distributor in the country, Wax said. Its slogan is to help its customers keep their facilities “healthy, clean, safe and green.”
It has 860 employees spread over 20 cities in nine western states from Colorado to Alaska. It operates a million square feet in 20 locations, seven of which are owned and the remainder leased.
Its best-selling products are paper towels and tissues. It has more than 100,000 products, such as waste cans specifically designed for hospitals.
“We have 300 or 400 different kinds of plastic bags and 50 to 70 different kinds of toilet paper,” Wax said.
Russian Immigrants
The Wax family history in the United States began in the early 1900s when Isaac Wax and his wife, Sadie, emigrated from Russia, according to the company’s website. Isaac opened several merchant supply stores in the Salt Lake Valley.
In World War II, his son Harry joined the Navy in 1943 as a Seabee, the U.S. Navy’s construction force that built landing facilities, airfields and other structures in combat areas. Morris, a younger brother, joined the U.S. Army in 1941 and served for three years with the Tank Corps. He was stationed in France and Germany, during which he even served as a military governor for several months in Germany.
In 1945, Harry purchased San Diego Janitor Supply and Chemical Co., a small business in his new hometown. The company name was changed in 1954 to WAXIE’s Enterprises.
In 1962 WAXIE expanded outside of San Diego by acquiring the Kleen-Line Corp. with warehouses in Santa Ana and San Bernardino. The acquisition extended WAXIE’s service territory to include all of Southern California.
Morris’ son Charles began working at the firm as a 12-year-old, sweeping floors and stacking products in the warehouse. He joined full time in 1973, became president in 1986, and took over the leadership when his father died in 1996. His brother David Wax joined in 1977 and is now executive vice president, overseeing the company’s four divisions in California and its education department.
Another three Wax family members are involved: Charles’ son-in-law Andy Vanderwiel, who is vice president, corporate account director, Charles’ grandson Blake Vanderwiel, who is a sales consultant, and David’s son Bryan Wax, who is data analytics manager.
Tech in Supplies
While the business appears simple on the surface, Wax said other executives may be surprised by the amount of technology involved. The company has 30,000 customers with 150,000 different shipping addresses. It receives 3,000 orders daily and manages more than 100 trucks.
“Our business has a lot of transactional components; the data requirements are tremendous,” he said. “It’s a big commitment to be innovative and on the leading edge. With our computer system, we know where everything is in our warehouses.”
It employs a dozen programmers in its tech department and spends well over $1 million a year on technology, he said. Its distribution center in Ontario is an example of new technology; the company designed narrow aisles with electronics on the floor to guide forklifts as they maneuver pallets.
“We can store twice as much product in half the space,” he said.
While Wax declined to reveal the company’s annual revenue, he said it’s grown at a 12% annual rate since 1945 and is 100 times bigger than when he began. Charles Wax was inducted into the San Diego Business Hall of Fame in 2007.
Looking for Growth
Three generations of Waxes and 72 years since the company’s founding, Charles Wax said he wants to keep growing at more than 10% annually. He is looking for acquisitions and is currently negotiating a deal, which he declined to reveal. Since his company is debt free, it has no plans for an initial public offering.
Wax’ firm made last year’s Business Journal list of Best Places to Work in Orange County. He said the key to the company’s success is staying true to its values.
“Treat the employees and customers right,” he said. “I have so many people with me 20 to 30 years. They started at the lower levels. We’ve been fortunate to get people with great attitudes and who want to work hard.”
