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Know Your Supplier - Rubber & Tyre Machinery World May 2016 Special


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Sustaining & innovating amidst changes is the hallmark of exemplary leadership. Pelmar Group has been displaying this leadership for the last 50 years! In this special edition, we showcase for you Pelmar Eng Ltd and two other knowledge enhancing articles

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Know Your Supplier - Rubber & Tyre Machinery World May 2016 Special

  1. 1. In Conversation With JACOB PELED, Exec. Chairman PELMAR ENGINEERING LTD. Supplier Know Your / Rubber & Tyre Equipment - Accessories Information On Equipment, Technology, Innovation & Suppliers Machinery World Rubber & Tyre Special Edition Pelmar Offers Total Solution
  2. 2. Supplier Know Your Rubber & Tyre Equipment - Accessories Contents KNOWLEDGE-ON-THE-GO Through A Gadget Of Your Choice RUBBERTYREMACHINERYWORLD INFORMATIONONEQUIPMENT,TECHNOLOGY,INNOVATIONSUPPLIERS ........... And MoreINFORMATION PORTAL | E-MAGAZINES | INTERVIEWS | KNOWLEDGE PARTNERS | DOWNLOADS 8 COVER STORY Pelmar Offers Total Solution Conversation with Jacob Peled, Founder and Executive Chairman of the Pelmar Group of Companies, on their total solutions for tyre and rubber industry. 531 10 C’s Of Supplier Evaluation INSIGHT 40 17 Essential Questions To Select Right Rebuilder TIPS May 2016
  3. 3. Change is inevitable. Changes in the business environment happen all the time. The economy fluctuates up or down on a daily basis, frequently causing businesses to alter the way they operate. New competitors enter the marketplace while others leave. Advancements in technologies, products and innovation lead to change in a business environment. Sustaining and innovating amidst changes is the hallmark of exemplary leadership. Pelmar Group has been displaying this leadership for the last 50 years! In this special edition of Know Your Supplier’s cover story, we showcase for you Pelmar Engineering Ltd., through an interactive session with Jacob Peled, Founder and Executive Chairman. Identifying and capitalizing on the opportunities swiftly along with thirst for growth has helped Pelmar diversify their expertise, spread reach globally and offer single-stop shop total solutions for rubber and tyre industry. Its not easy to achieve three record years consecutively handling a range of activities that include pre-owned machinery, new equipment, complete engineering services, raw materials, military technical rubber production, technology transfer, MA activity and more. This requires efficiency and focus. Don’t miss our main story to know how Pelmar has been consistently outperforming customer expectations year-on-year. In addition, we have two other knowledge-enriching topics from our portal through our ‘Insight’ and ‘Tips’ sections. As always, I welcome your feedback on Best Regards Prasanth Warrier | Editor’s Note | Single-Stop Shop Total Solutions Sustaining and innovating amidst changes is the hall- mark of exemplary leadership. Pelmar Group has been displaying it for the last 50 years! 7 rubbermachineri rubbermachineryworld +Rubbermachineryworld1 grp/home?gid=8252803 rubbermachineri (Disclaimer: The pictures and statements in our special supplements are shared by the respective companies and/or sources mentioned. Rubber Tyre Machinery World does not verify/vouch for their genuineness, hence will not be liable for any misrepresented data) Know Your Supplier | MAY 2016
  4. 4. Know Your Supplier | MAY 2016 CHINA INDIA USA UK GERMANY SPAIN ITALY TURKEY ISRAEL | PELMAR | AT A GLANCE 8 50Estd. in 1966 YEARS IN BUSINESS 9World-wide OFFICES 150 Across Ofces GloballySTAFF 11At Non-Ofce Countries REPRESENTATIVES 100 Professional Qualied Engineers Only at Top Management LevelPERCENT 3 Average Equipment Delivery Lead TimeMONTHS95 Exports PERCENT 52Turnover in USD (’15) MILLION 6 Of Total Turnover Invested in RD Activities% 1901 Oldest supply. Continues to successfully work in a conveyor belt plant in Taiwan. ANSONIA 4-ROLL CALENDER 35Repeat Buyers PERCENT 10And their subsidiaries are Pelmar Customers TOP TIRE BRANDS 1000 Delivered to Customer Satisfaction+PROJECTS 14With Reputed Machinery Brands PRINCIPAL PARTNERSHIPS YEAR OF MFG 7 Of Expertise From Equipment Supply to Turnkey ExecutionAREAS 1000 Satised Customers PLUS
  5. 5. 1. Equipment Dismantling and Relocation. 2. Installation and Commissioning. 3. Logistics Handling. 4. Machinery Supply: New, Reconditioned and/or Pre-Owned - as is. 5. Technological Support. 6. Business Development, Mergers Acquisitions 7. Turn-key Projects. 7AREAS OF EXPERTISE 9 based in Ramat Hasharon, Israel,Pelmar Engineering Ltd. supplies pre-owned, refurbished, and new machinery to the tire and rubber industry worldwide. Spread around the world, Pelmar offers wide range of services which include equipment, engineering, technology, raw materials and finished products. We understand from our conversation with Jacob Peled, Founder and Executive Chairman Pelmar Group ofof the Companies, they have had 3 consecutive record years.that And is now planning expansion of both its commercial and technical activities. Pelmar Group has gradually and consistently built a formidable name in Rubber and Tyre Industry with sizeable presence through its subsidiaries. What are the challenges that you face these days on sustaining your growth? Our main challenge is the presence of low-cost, mainly Chinese machinery with low-level engineering quality. The second challenge is to satisfy on-time the requirements of major customers for turn-key projects. Our rate of response is extremely fast whether it is delivery time or solving a problem. | PELMAR | What are the major strengths of Pelmar Group? How do you add value to equipment buyers? The major strength of the Group is the speed of reaction, which is extremely fast whether it is delivery time or solving a problem. We add value by upgrading the machine with tailor-made features and complete modernization of the electrical system, turning it into up-to-date performing machines. We do not necessarily reduce costs, but always increase comfort level. Know Your Supplier | MAY 2016
  6. 6. | PELMAR | Know Your Supplier | MAY 2016 Past to Present.... Pelmar started as an importer and supplier of retread equipment to the Middle East in partnership with Myers Industries of Akron, Ohio. It then graduated into an importer and distributor of new tire machinery for the Middle East. In the early 1980's the company began to design erection of entire plants mainly for technical rubber goods such as conveyor belts, solid tires, V-belts, tire molds, pre-cured treads, and retread materials. In the early 1990's through today, the company expanded and built branches around the world, beginning with the UK, continuing with Germany, the USA, Italy, Austria, India, Spain and China. ImageSource:Yopriceville How has been your experience so far in this industry? Our experience in the tire and rubber industry has been the best. This has to do mainly with the level and integrity of the people we interact with, regardless if they are buyers, sellers, employees or consultants. Our services are needed mainly when the market is either very low or very high. Our services are needed mainly when the market is either very low or very high. 10
  7. 7. | PELMAR | Know Your Supplier | MAY 2016 Images: Reconditioned Iddon Make Mixing Mill (Top). and Pre-Owned Roller Die Dump Extruder (Below) 12
  8. 8. | PELMAR | Know Your Supplier | MAY 2016 I see that you have a vast range of equipment and some top brand-level partnerships. You also sell pre-owned, refurbished and new equipment. So, what products and services can a prospective buyer expect when they come to you? Pelmar is there to offer a total solution. Pelmar offers support which ranges from market analyses, investment and CAPEX estimates, technical backing, commissioning and running in machinery that we supply. Pelmar is there to offer a total solution. Images: New Carbon Feeding Unit (Right). Reconditioned 4-Roll Rodolfo Comerio Calender Line (Below) 13
  9. 9. | PELMAR | Know Your Supplier | MAY 2016 Purchasing machinery is a major investment for most buyers and they would need technical inputs and customization. What level of pre-sales support does Pelmar Group offer? The level of pre-sales support varies according to customer need. We normally offer and facilitate visits for prospects to see similar equipment in operation. And help them with comprehensive CAPEX (Capital Expenditure) calculation to take an informed buying decision. Pre-sales support varies according to customer need. Supply of New, Pre-owned and Refurbished equipment Engineering Consultancy and Design Services Technical and Engineering Support and Training Technology Assistance and Transfer Plant relocation Plant Audit Market survey MAJOR BUSINESS AREAS Image: Reconditioned 4-Roll Rodolfo Comerio Calender Line by Pelmar Engineering14
  10. 10. | PELMAR | Know Your Supplier | MAY 2016 In your range, which are your fast moving products and in which sector? Which machinery of yours have larger sales chunk? We do not have many fast moving products except engineering and spare parts. The largest sales chunk is mixing and calendering lines sold as is or refurbished. Image: Reconditioned Gear Pump Strainer Extruder 16 Also Extruders and Cooling Lines are fairly fast movers.
  11. 11. | PELMAR | Know Your Supplier | MAY 2016 How successful is this concept of turnkey solutions, that Pelmar offers, in the industry today – Do customers seek this level of involvement in their projects? Yes, quite a few mid-size customers seek this level of involvement i.e. from consultancy to planning, technology selection, and equipment supply to start of production runs. We are very often asked to be involved in issues such as services supply (energy, compressed air, steam, chilled water, etc.) because our expertise and our experience with end-to-end project execution. We support technology and productivity requirements mostly by offering more efficient equipment with latest controls. How do you compete technologically on your products and service offerings? Pelmar offers new, reconditioned and pre- owned machinery to our customers. We support their technology and productivity requirements mostly by offering more efficient equipment with the latest controls and computer oriented handling. Technical services and availability are our means of competing in the market, not necessarily price. What are Pelmar’s infrastructure and capabilities? Can a potential buyer look at a long-term partnership with you? Our manufacturing capabilities are those that are part of the Group and sub- contractors with whom we have long-term agreements. Yes our customers are looking at Pelmar as long-term partners. High percentage of our clients are repeating customers. 17
  12. 12. | PELMAR | Know Your Supplier | MAY 2016 What caution should a buyer take when setting up turnkey lines? Do you have any recommendation of best practices to be adopted? The caution that the buyer should take is the capability and proximity of after-sales service support. A lot of new equipment purchased has a shorter life than older quality European, Japanese or American machinery. We serve our customers’ pre and post-sales requirements through our 9 offices globally. In addition, the expertise gained over last 50 years of successfully delivering over 1000 projects a great comfort for our customers and ourselves on our capability to deliver project after project. How do you ensure that you deliver high quality solutions and services to your customer? What processes and certifications do you have in place to ensure consistency of quality/meeting deadlines? Our production engineering department is following up each project utilizing the latest CRM systems. Any deviation from the pre-set program causes notification and it is corrected immediately. In addition, we have regular training imparted and seminars conducted for refreshing the skills of our team. Our production engineering department is following up each project utilizing the latest CRM systems. Image: Carbon Handling and Screw Feeding System 18
  13. 13. | PELMAR | Know Your Supplier | MAY 2016 Do you invest in RD? Today, where are your RD investments and efforts directed? Yes, we do. Approx. 6% of our budget. The RD investments are mainly directed towards improving our lab facilities, both chemical and physical properties. Would you say Pelmar Group is innovative? How do you keep this spirit going in your employees? Pelmar has always been innovative within the confined area of the tire and rubber industry. Our employees participate regularly in various international professional conferences and events. Are you launching any new products / solutions this year? Any expansion plans? We have launched solutions 2 years ago for weighing and dosing of small chemicals for tire and rubber plants. Two years before that, we launched a new and modern pre-cured tread press solution. And 2 years before that, modern, new, 2-stage radial Agri tire automated TBM.. We are soon to announce a new product but the name and details will only be released in the Q3 2016. Radial Agri Tire Building Machine Multi-storey Fully Automatic Loading and Unloading Pre-Cured Tread Press Radial Aircraft Tire Building Machine Dedicated Radial Run-out Machines for Industrial Tires Small Chemical, Fully Automated Weighing and Dosing system INNOVATIONS AND NEW PRODUCTS Pelmar has always been innovative. Image: Pelmar made a significant presence with their Stall at TTE2016. 20
  14. 14. | PELMAR | Know Your Supplier | MAY 2016 How easy is it for your existing clients and future buyers to reach you and exchange information? I believe it is easier than before. We are constantly working on improving our website and shortening our reaction time by any of our 12 companies worldwide, all of which use the same database. What challenges are you tackling today to improve customer service and enhance their overall satisfaction? We are actually tackling today the same challenges as 25 years ago, only that customer service in many cases has become more demanding, particularly speed of service and reaction time. What level of training does Pelmar Group extend to your customers? We do not meet many requests of training customers off site. In the cases where this is required, we normally invite the customer to our site in Yokneam or use another customer’s facility. These are not new recruits, but experienced operators/trainers. Are your solutions on machinery meeting Precision and Automation requirements in both domestic and export markets? Precision and Automation are requirements that exist already for many years. In recent years we have spent time, efforts and funds for improving control systems as well as servo-motors for obtaining these requirements. We have spent time, efforts and funds for improving control systems. Image: 3-Roll Precision Calender Line 21
  15. 15. | PELMAR | Know Your Supplier | MAY 2016 When a customer places a service request, how do you handle the situation? And what is the average turn-around-time (TAT) for your personnel to respond and resolve? A service request is given priority in our system. It is normally handled within the same day or latest within 24 hours. How is Pelmar Group's offering of Pre- Owned Machinery different from those offered by other players in the market? Pelmar only offers equipment which it owns. It does not mediate between equipment owners and plants and the customers. Pelmar always carries a thorough inspection report and corrects what is necessary normally in coordination with the end user and the original manufacturer. Unlike the absolute majority of our competitors, Pelmar mostly acquires a complete plant or line. Very few individual machines are bought. How do you decide which machinery to buy? Any specific guidelines? The majority of equipment sellers to Pelmar are tire plants. What changes do you see happening in the rubber and tyre machinery industry? How are you positioning and preparing Pelmar Group for these changes? The changes have been outlined in my recent presentations. Tire plants will become smaller but more automated and will specialize in one type of tire (motorcycle, passenger, truck or off- highway). Robotics will play a major role and outsourcing, especially of compounding, will become dominant. Pelmar always carries a thorough inspection report. Image: Refurbished Bias Cutting Line. 22
  16. 16. “Complete your Plant with your desired technology to your complete satisfaction on-time through us.” Your Partner in for Rubber Processing MachineryMALAYSIA For your green-field and brown-field expansion or research projects in raw rubber and other technical rubber goods, we can source for you the right machinery to meet your technology requirements, and be your single-window support for after-sales service communication and training in Malaysia. For crucial projects, we train our personnel on the machinery we supply, to give you quick support. In addition, we are established and licenced contractors in Mechanical,Telecommunications, Electrical and Civil Works. Hence, we offer you on turnkey basis - from equipment supply, material handling at site, equipment relocation, erection and installation, services and utilities to equipment commissioning. to know more on ourContact me today team, the equipment brands we partner with, our esteemed clients and full range of services for your rubber related projects. IKATAN TEKUN SDN. BHD. Ahmad Fezal Bin Zakaria Sales Project Manager IKATAN TEKUN SDN. BHD. 1st, Floor, Bangunan Sapura,Lot 2, Jalan Enggang, Kawasan Perindustrian PKNS, Hulu Kelang, 54200, Kuala Lumpur, Malaysia. Tel: (+6) 03 - 425.6 5.589 | Fax: (+6) 03 - 425.7 5.589 * ) (+6) 017-362.79.71 AUTUSCONSULTING@2016
  17. 17. | PELMAR | Know Your Supplier | MAY 2016 To continue to be a “one-stopVISION: shop” for the tire and rubber industry worldwide, and maintain the position of ‘head of the foxes rather than the tail of the lions’. CORE VALUES: Clarity Top Professionalism, and Providing assistance to any customer, supplier and colleague International Offices, Plants Warehouses - Business Manager, Location 1. Pelmar Engineering (UK) Ltd. – Joe Wilkinson, Birmingham 2. Pelmar Engineering Italia Srlu – Bruno Barbagallo, Rome 3. Pelmar Engineering Germany GmbH – Ina Helmer, Fulda 4. Pelmar Engineering Austria GmbH – Robert Adam, Traiskirchen 5. Beijing Pelmar BCE Trading Co., Ltd. – Jeffrey Hu, Beijing 6. Pelmar Engineering Turkey Ltd. – Bulent Savas, Istanbul 7. Pelmar Engineering Spain Ltd. – Enrique Guix, Barcelona 8. Pelmar Sudrishti Engineering India Pvt., Ltd. – V. M. Kulkarni, Mumbai Naftali Blumenthal – Chairman of the Board Jacob Peled – Founder and Executive Chairman of the Pelmar Group Dana Broder – Co-CEO and CFO Eldad Eilam – Co-CEO Tal Dekel – CEO of TGL SP Industries Ltd. KEY LEADERS Akar Makina Sanayi Ve Ticaret Ltd. Sti, (Turkey) Alpha Technologies Gmbh (Germany) Beijing Hanch Co., Ltd (China) Calemard (France) Cincinnati Retread Systems Div. (CRS) (USA) Collmann Gmbh Co (Germany) Color Service Srl (Italy) Comerio Ercole S.p.a. (Italy) Intralox, LLC. Europe (Holland) Mccoy Machinery (USA) MACHINERY PRINCIPALS, PARTNERS COLLABORATORS Mcneil Nrm Inc. (USA) Prodicon International Srl. (Italy) Roland Electronic Gmbh (Germany) Techno Rubber Ltd. (Bulgaria) The Steelastic Company, LLC (USA) Troester Gmbh Co KG (Germany) Uzer Makina Ve Kalip Sanayii A.S (Turkey) VMI Group (Holland) 4Jet Sales+service Gmbh (Germany) 24
  18. 18. Jacob Peled's interest has focused on the subjects of sustainability and particularly recycling of both technical rubber products and tires. As a graduate of Tel Aviv University and post-graduate of the Hebrew University in Jerusalem, Peled has educated a generation of researchers, scientists and developers dedicated to tire and rubber engineering. Peled is an Executive Board member of the Retread Tire Association (RTA) and a long- standing member of the Rubber Division, American Chemical Society and is past President of ITRRF - International Tyre, Rubber and Recycling Federation in the UK. In recent years the majority of his activities have been devoted to the development of useful recycled materials as additives to rubber custom compounding and the development and responsibility for new tire production facilities worldwide, as well as Mergers Acquisitions. JACOB PELED - FOUNDER EXECUTIVE CHAIRMAN Peled has educated a generation of researchers, scientists and developers dedicated to tire and rubber engineering. | PELMAR | Know Your Supplier | MAY 2016 25
  19. 19. | PELMAR | Know Your Supplier | MAY 2016 How do you differentiate yourself as well as compete on price of your products with other brands in the market and with the cheaper SE Asian machines? We differentiate ourselves mainly by size, span and financial capabilities, as well as engineering. We do not compete with Chinese lower cost machines in price, mostly in quality and service. Most of our customers have realized themselves the need to calculate beyond the price tag of machines and many are concentrating on ROI and efficiency. Do you have CSR activities in Pelmar Group? Our engineers regularly volunteer with under-privileged youth to advance their studies and complete their matriculation exams. We also raise donations for higher education, like the engineering studies of the Technicon, in Haifa and Tel Aviv University. We do not compete with Chinese lower cost machines in price, mostly in quality and service. Image: Endurance Tester for Passenger Tires Image: New Mixing Mill offered by Pelmar 26
  20. 20. | PELMAR | Know Your Supplier | MAY 2016 The younger management will certainly be able to manage the company and continue the growth trend. What is your advice on equipment selection to buyers of rubber and tyre machinery? Machinery selection is an art by itself and should be done by people who have visions, both technical and commercial. My advice is always to check references, compare real and technical capabilities and prices. Is Pelmar Group in good financial health and sufficiently funded to grow? Pelmar has had 3 consecutive record years. It is planning expansion of both its commercial and technical activities, in Israel and worldwide. Pelmar Group has restructured the management. What would this revamped leadership and refocus aspire to achieve in the next 10 years? The restructuring of management was necessary to ensure continued activity and growth. Pelmar's international locations are responsible for almost 75% of the revenue and contribute to customer accessibility, faster service, and easier personal communications because of proximity. We do not know of a competitor that has the spread that Pelmar has around the world nor anyone that has our range of services which include equipment, engineering, technology, raw materials and finished products to the tire and rubber industry. Pelmar's international locations are responsible for almost 75% of the revenue and contribute to customer accessibility, faster service, and easier communications. Image: Dynamic International Leaders of Pelmar led by Co-CEO’s Dana Broder and Eldad Eilam after a conference in 2015. RMW 28
  21. 21. | INSIGHT | C’s Of Supplier Evaluation 1O Have you ever finalized and transacted with a supplier, only to realize, later, that you’d made the wrong choice? This could be in any form. For example, you may have found a supplier that offered a good price, but later realized that its quality standards were low, or that its communication was unacceptably poor. Or in cases of sub-contracting, equipment supplied and branded with your logo are substandard. It makes no difference what business you are in; suppliers and vendors play a key role in your company’s success. The real cost of mismatches between your needs and a supplier’s offerings are not always obvious. Such mismatches can add costs, delay projects and even damage your organization’s reputation when the equipment supplied is substandard. Selecting your right supplier (for machinery, equipment or spares) includes much more than a focus purely on cost. If you are actively involved in supplier selection you already know that it can be an exhaustive process. Because there are a wide range of variables to consider that make the supplier selection process complex and time-consuming. You may introduce standardization criteria through an assessment framework or template for selecting suppliers. Having a formalized system in place to track and evaluate supplier and vendor performance is essential to the smooth operation and profitability of your company. This also helps you level the playing field whilst giving you a standardized procedure removing some of the guesswork from the process. But how should you evaluate your potential suppliers? Here’s where Ray Carter’s work assumes significance. Know Your Supplier | MAY 2016 Selecting your right supplier (for machinery, equipment or spares) includes much more than a focus purely on cost. This section is bought to you in association with our brand display partners 31
  22. 22. 32 To the uninitiated, Ray Carter (Director of DPSS Consultants) first outlined his Seven Cs of Supplier Evaluation in a 1995 article in ‘Purchasing and Supply Management’. He later added three new Cs to the model. The ‘10 C’s of Supplier Evaluation’ help you avoid supplier or vendor problems. Such a checklist helps you to outline organizational needs, understand how suppliers can meet them, and identify the right supplier for you. While your criteria of selection for rubber and tyre machinery suppliers may be subtly different – developing a standardized set of requirements will help simplify the process and remove subjectivity. So what to consider in 10 C’s of Supplier Evaluation that benefits you quicker? 1. Competency: Does your supplier have the skills to deliver the products you require? This is fundamental to being a good supplier and competency needs to have evidence to back it up, there is no point in you simply making assumptions. Your supplier needs to provide hard evidence. So, make a thorough assessment of the supplier’s capabilities measured against your needs, but then also look at what other customers think. How happy are they with the supplier? Have they encountered any problems? And why have former customers changed supplier? When you evaluate, look for customers whose needs and values are similar to yours, to ensure that the information you gather is relevant to your organization. 2. Capacity Your supplier needs to have sufficient capacity to enable it to operate flexibly. The more flexible the supplier is, the more it can meet fluctuations in demand. Look at the supplier’s entire resources (including staff, equipment, storage, and materials). Does it have the resources to meet your needs, particularly when commitments to other clients are considered? Can your supplier flex their capacity in line with your requirements? The supplier needs to have enough capacity to handle your firm’s requirements. So, how quickly will it be able to respond to these (and to other market and supply) fluctuations? 3. Commitment Quality is a key requirement for any business. Your supplier needs to provide evidence that it’s committed to high quality standards. Wherever appropriate, look for quality Know Your Supplier | MAY 2016 | INSIGHT | The ‘10 C’s of Supplier Evaluation’ help you avoid supplier or vendor problems.
  24. 24. 34 initiatives such as ISO 9001 and Six Sigma, within the supplier organization. The supplier also needs to show that it is committed to you, as a customer, for the duration of the time that you expect to work together. This is particularly important if you’re planning a long-term relationship with the supplier. You’ll need evidence of its ongoing commitment to delivering to your requirements, whatever the needs of its other customers. Does your supplier have the commitment to maintain suitable quality performance? 4. Control Query how much control this supplier has over its policies, processes, procedures, and supply chain. Control is important because it is control of the processes and internal procedures that needs to be looked at, so that a full profile can be established of the supplier and how much control the supplier has. Control can take various forms, for example, how much control does the supplier have in terms of its suppliers warning it when goods become scarce or even stop being produced. So there are lots of different aspects to control. Is your supplier in control of their policies and procedures? How will it ensure that it delivers consistently and reliably, particularly if it relies on scarce resources, and particularly if these are controlled by another organization? 5. Cash This is the financial standing of the supplier. Your supplier should be in good financial health. Cash-positive firms are in a much better position to withstand the ups and downs of an uncertain economy. So, does your supplier have plenty of cash at hand, or is it overextended financially? And what information can the supplier offer to demonstrate its ongoing financial strength? Does your supplier have adequate financial standing? Are they in a robust position or are they teetering on the edge of financial meltdown? 6. Cost Look at the cost of the product that this supplier offers. You will find it interesting to observe that cost is not listed as the No. 1 issue and is in the middle of the 10 C’s of Supplier Evaluation list for a reason: other factors, such as a commitment to quality and financial health, can potentially affect your business much more than cost alone, particularly if you will be relying on the supplier on an ongoing basis. What is the cost of products from the supplier? How does this compare with the other firms that you’re considering? Know Your Supplier | MAY 2016 | INSIGHT | You will find it interesting to observe that cost is not listed as the No. 1 issue and is in the middle of the 10 C’s of Supplier Evaluation list for a reason.
  25. 25. 36 7. Consistency How will this supplier ensure that it consistently provides high quality goods or services? No one can be perfect all of the time. However, the supplier should have processes or procedures in place to ensure consistency. Ask your supplier about its approach, and get a demonstration and a test product, if possible. Does your supplier guarantee a consistent product time and time again? 8. Culture This is an interesting point. Carter felt that the supplier should be one that has the same values and ways of operating as the customer. In a sense this is almost about compatibility, but it makes sense for the supplier and the customer to have some shared values and practices, otherwise the relationship could be strained in the future, simply due to the clash in different cultures. The best business relationships are based on closely matching workplace values. For example, what if your organization’s most important value is quality and your main supplier cares more about meeting deadlines? This mismatch could mean that it’s willing to cut corners in a way that could prove to be unacceptable to you. So evaluate, does the supplier share the same cultural values as your organization? Does it make sense that your supplier shares similar values and attitudes to avoid strains in the future relationship? 9. Clean This is a reflection of increased environmental awareness and refers to your supplier’s commitment to sustainability, and its adherence to environmental laws and best practices. So in a sense, suppliers are asked to demonstrate their ‘green credentials’. What is it doing to lighten its environmental footprint? Ask to see evidence of any green credentials that it’s earned. Also, does this supplier treat its people (and the people around it) well? Does it have a reputation for doing business ethically? Does your supplier have an appropriate sustainability policy? 10. Communication Although it may seem obvious, query how the supplier plans to keep in touch with you. Will it be by fax, email or telephone? Communication also covers the ICT software and applications that the supplier has. What tools will you utilize to communicate with your supplier? Will its proposed communication approaches align with your preferred methods? And who will be your contact person at this firm? It’s also important to find out how the supplier will handle communications in the event of a crisis. For example consider how you will manage problem resolution and Know Your Supplier | MAY 2016 | INSIGHT |
  26. 26. KELACHANDRA MACHINES (MFRS. OF RUBBER INDUSTRIAL MACHINERY) Chingavanam - 686 531, Kottayam, Kerala. India. Phone Off: +91- 481-2430325. Fax: +91- 481-2430596 e-mail:
  27. 27. AMCL MACHINERY LIMITED SERVICE TO THE NATION FOR FOUR DECADES For all your enquiries please contact: AMCL MACHINERY LIMITED Works: Plot No.A1/1, MIDC, Butirobi-441122, Nagpur Mumbai office: 202, Ackruti Centre Point, MIDC Central Road, Andheri (East), Mumbai-400 093. Contact person: Mr. S.H. Mehta Mobile No. +91-9004697430. Email: Website: • Rubber Mixer – 76 liter and 270 liter. • Mixing Mills – 16, 22, 26 and special sizes • Hot feed extruders – 6 and 8 • Rubber Calenders – 2/3 rolls. • Bias Tyre Building machine – RB1/RB3 • Automatic LCV Tyre Building Machine – RB1619 • Automatic Truck Tyre Building Machine-RB2022 • Mechanical Tyre Curing Presses – Scooter to Truck size • Bladder Curing Presses • Tube Splicers Product Range
  28. 28. issue escalation. How quickly will it notify you if there’s a supply disruption? How will that communication take place? And will you be able to reach senior people, if you need to? Summarizing, the Carter 10 C’s of Supplier Evaluation model is an internationally recognized approach, taught in procurement studies, and acknowledged as an all-inclusive means of making sure that a thorough method is adopted to evaluate suppliers in a fair manner for all potential entrants. How do you evaluate and select your suppliers? Know Your Supplier | MAY 2016 | INSIGHT | RMW This section is bought to you in association with our brand display partners - INDUSTRY - TECHNOLOGY - INNOVATION - EQUIPMENT GET MORE INSIGHTS FROM RUBBER TYRE LEADERS ON Only On Know A LEADERIn 10 Questions Rubber Tyre MM RUBBER Rubber Machinery World MM TYRE Tyre Machinery World C’s Of Supplier Evaluation10 Choose Wisely.Operate Smartly Ray Carter’s 1. Competency. 2. Capacity. 3. Commitment. 4. Control. 5. Cash. 6. Cost. 7. Consistency. 8. Culture. 9. Clean. 10. Communication. 39
  29. 29. Know Your Supplier | MAY 2016 Image: A Mixing Set-up by Pelmar Engineering 40 | TIPS |
  30. 30. Essential Questions to Select the Right to-select-the-right-rebuilder-for-your-internal-mixer/ 17Rebuilder for your Internal Mixer Know Your Supplier | MAY 2016 41 | TIPS |
  31. 31. Know Your Supplier | MAY 2016 Rebuilding an internal mixer can be less expensive than purchasing a new machinery. Your production downtime can also be reduced by proper planning because of faster turnaround times on rebuilds. Depending on the condition of the internal mixer; they could be rebuilt, re- manufactured or upgraded. Rebuilding a mixer requires expertise in mechanical aspects and knowledge of its functioning. Rebuilders’ knowledge of hydraulic, lubrication, pneumatic, electrical, control, and cooling systems are equally important if you plan to upgrade. The rebuilding process will require your mixer (and its components) to be disassembled, cleaned, inspected, and repaired (or replaced as is required). Hence, an expert rebuilder follows these steps: ▪ Disassembly, cleaning, and inspection. ▪ Estimation on the scope of rebuild and guidance to upgrade the mixer components (in case of old designs and brands) to improve performance. ▪ Rebuilding or re-manufacturing mixer components to original dimensions, clearances and tolerances. ▪ Ordering of the required electrical, control, hydraulic, lubrication, pneumatic, and cooling system parts. ▪ Reassembly of the mixer and painting. ▪ Documentation and manuals for installation, spares, maintenance (and operations in case of upgrading the mixer) ▪ Inspection, testing and mechanical re-certification. ▪ Installation and Startup support at site. ▪ After-market service and spares support. There are a significant number of details within each of the steps outlined above, that needs extensive expertise. Hence, I suggest that you ask yourself the following 17 questions (that needs a “yes” answer) to decide on your choice of a mixer rebuilder. (Reputed companies recognize the importance of these questions and will provide you full details. Most would even display documentary evidence during your discussions) 1. Is the company well-established in the industry? 2. Does the company have drawings to rebuild and re-manufacture your mixer to specifications? 3. Does the company have design capabilities to upgrade, modify or custom-design your mixer components to new/improved specifications? 4. Can the company service your mixer? 5. Does the company have competent personnel for field service? 6. Can the company provide installation support? 7. Does the company have the required engineering infrastructure to re- manufacture your mixer components? What are its manufacturing capabilities? Rebuilding a mixer requires expertise in mechanical aspects and knowledge of its functioning. 42 | TIPS |
  32. 32. Know Your Supplier | MAY 2016 8. Can the company extend service and spares support throughout the life of your mixer? 9. Does the company have the required testing (like pressure, steam, hydrostatic, ultrasonic, etc) facilities for your mixer and its components? 10. Does the company supply installation and parts manuals? 11. Can the company ensure final mixer dimensions match the existing dimensions available at your site? 12. Does the company provide you verification of inspection reports, test certifications of critical components? 13. Are they confident of their internal quality processes and systems? 14. Do they agree for a third-party inspector for final inspection and validation? 15. How does the company go about determining the scope of rebuild? 16. Does the company display transparency when sharing – which components are rebuilt? Which are re-manufactured? Which are upgraded designs?, etc. 17. Does the company have the expertise or resourcefulness to guide you on electrical, control, hydraulic, lubrication, pneumatic, and cooling systems? | TIPS | Plan a visit to research and evaluate your prospective companies well. Because a mixer rebuild can cost your pocket at least 50% or more of a new machinery price depending on its condition. Select the right rebuilder to restore your internal mixer to its original capacity, maintain them well. RMW A mixer rebuild can cost your pocket at least 50% or more of a new machinery price depending on its condition. Image: Pelmar Reconditioned F270 Mixer 44
  33. 33. Disclaimer:Thisimagefromwebisonlyfor representativepurposeandnotoftheadvertiser. BUSINESS OPPORTUNITY A US $20 million company in India proposes to set up a modern rubber conveyor belt (Synthetic fabric and Steel cord reinforced rubber conveyor belts) manufacturing plant in India for Mining and Industrial sectors. This company is desirous to enter into a strategic agreement with a renowned brand (technology partnership/equity stake). Genuinely interested companies from Japan, Korea, Australia, USA, UK, France, Canada, Germany, Chile, Brazil, South Africa, Poland etc may email in confidence to for further communication. Dated:06April2016|RubberTyreMachineryWorld TECHNOLOGY PARTNERS FOR CONVEYOR BELT MANUFACTURING IN INDIA