Sydney, NSW (PRWEB) August 1, 2008
Australia's Best Magazine interviews Aaron Raadschelders on Supply Chain Management. This in-depth feature appeared in Australia's Best Manufacturing, published by Bean Media Group in Sydney.
Following the purchase of the business by Delta Group Australia, the Australian Galvanizing Division added Delta's galvanizing plants in western Brisbane and in Melbourne to its operations. It also acquired Port Kembla Galvanizing, incorporating the Auszinc Alloys zinc residue treatment and zinc metals and chemicals business. From its earliest days, the company has been involved in manufacturing lintels for the Australian building industry, which continues under the INGAL Building Systems banner.
The subsequent addition of galvanizing businesses in Perth WA, Launceston TAS and Townsville NQ has given Industrial Galvanizers Australian Galvanizing Division the capability to galvanize 150,000 tonnes of fabricated steel annually in the 9 plants from which it operates.
"Total customer satisfaction and safety are two very important elements of Industrial Galvanizer's strategic objectives," says Raadschelders. "And how we manage our suppliers aids us in achieving our targets for these two important strategic objectives. Ignore your suppliers, and you won't get the best out of them."
Within galvanizing tank sizes and crane lifting capacities Industrial Galvanisers receives all manners of fabricated steel. "The Australian market is extremely dynamic, but we do enjoy various base load products from regular customers. We work very closely with our materials handling, processing consumables, safety, maintenance, and transport suppliers to ensure the finished product exceeds the customer's expectations," states Raadschelders. With an optimum lead time of two to three days, the business depends on their suppliers to provide resources at short notice, especially following unusual galvanizing requests.
"It is imperative that supplier feedback for materials, labour and transport is accurate and quick, given our market is mature and competitive," Raadschelders explains, which leads into the concept of primary, secondary and tertiary suppliers. "Our primary suppliers are quite aware we are in regular contact with our secondary and sometimes tertiary suppliers. This means that our suppliers are more likely to put their best price (and timeframe) forward so we're not wasting each others time. As a result, we reward our suppliers for their ability to deliver on time, and to a high standard of quality and safety."
Given their job-shop handling and relatively short first-in-first-out approach, Industrial Galvanisers are not left much time for preventative or breakdown maintenance on their plant and equipment, or their capital project work. "It's fair to say that we have put some of our suppliers to the test given our often hot and corrosive environment," admits Raadschelders. "More often than not, the benefits of our long term relationships with our various suppliers have meant we've got the job done, on time and within budget. Everyone deserves a Fairy Godmother, for a while at least," he adds.
The cost to the business for a lost customer, an injury, or a loss in production without a doubt affects the company's bottom line. Not only are they relying on the supplier to deliver the product/service on time and in the right quantity, but they expect them to supply - if necessary - the current Material Safety Data Sheet (MSDS), the test certificate, or the Job Safety/Environmental Analysis (JSEA) and so forth. "It is here the relationship takes on a more formal approach in that our suppliers need to be clear on our national or local standards for supply of product and services. We're not Mil-Spec, but we're not shooting from the hip either. I'd like to think we've struck a comfortable balance and we're not adding to the divorce rate between manufacturers and suppliers."
Following the continued investment from their parent company, Delta PLC the excitement continues as Industrial Galvanizers Australia goes from strength to strength. "Suppliers can see opportunities in materials handling and safety as sites are being redeveloped Australia wide. We often draw on a supplier's years of experience to assist in developing new processes and safety standards," conveys Raadschelders. "In some cases our top suppliers have been in business with our various production sites for decades. It's our supplier's ability to understand where we, as a galvanizing business, have come from, and where we are going, that will aid in shaping the future of Industrial Galvanizers Australia."