know your supplier - rubber & tyre machinery world may 2016 special
TRANSCRIPT
In Conversation With
JACOB PELED, Exec. Chairman
PELMAR ENGINEERING LTD.
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8COVER 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.
53110 C’s Of SupplierEvaluation
INSIGHT
4017 Essential QuestionsTo Select Right Rebuilder
TIPS
May 2016
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, M&A 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
Know Your Supplier | MAY 2016
CHINA
INDIA
USA
UK GERMANY
SPAINITALY
TURKEYISRAEL
| PELMAR | AT A GLANCE
8
50 Estd. in 1966
YEARS INBUSINESS
9World-wide
OFFICES
150 Across OfcesGloballySTAFF
11At Non-Ofce Countries REPRESENTATIVES
100 Professional & QualiedEngineers Only at TopManagement LevelPERCENT
<3Average Equipment Delivery Lead TimeMONTHS95 Exports
PERCENT
52 Turnover inUSD (’15)
MILLION
6Of Total TurnoverInvested in R&DActivities%
1901 Oldest supply. Continues to successfully work in a conveyor belt plant in Taiwan.
ANSONIA 4-ROLL CALENDER
35 Repeat Buyers
PERCENT
10 And their subsidiariesare Pelmar Customers
TOP TIRE BRANDS
1000 Delivered toCustomerSatisfaction +PROJECTS
14 With Reputed Machinery Brands
PRINCIPAL PARTNERSHIPS
YEAR OF MFG
7 Of Expertise From Equipment Supply to Turnkey ExecutionAREAS
1000 Satised Customers
PLUS
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 OFEXPERTISE
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 of of 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
| 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 forthe 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.
Ima
ge
So
ur
ce
: Y
op
ric
ev
ille
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.
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| PELMAR |
Know Your Supplier | MAY 2016
Images: Reconditioned Iddon Make Mixing Mill (Top). and
Pre-Owned Roller Die Dump Extruder (Below)
12
| 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
| 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 BUSINESSAREAS
Image: Reconditioned 4-Roll Rodolfo Comerio
Calender Line by Pelmar Engineering14
| 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.
| 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.
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| 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
| PELMAR |
Know Your Supplier | MAY 2016
Do you invest in R&D? Today, where are
your R&D investments and efforts
directed?
Yes, we do. Approx. 6% of our budget. The
R&D 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
| 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
| 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
“Complete your Plantwith your desired technology to your complete satisfactionon-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 our Contact 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 ZakariaSales & 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
AU
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| PELMAR |
Know Your Supplier | MAY 2016
To continue to be a “one-stop VISION:
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
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
| 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
| 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
| INSIGHT |
C’s Of Supplier
Evaluation https://rubbermachineryworld.com/2016/02/17/10-cs-of-supplier-evaluation/
1OHave 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
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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.
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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.
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 |
KELACHANDRA MACHINES(MFRS. OF RUBBER INDUSTRIAL MACHINERY)
Chingavanam - 686 531, Kottayam, Kerala. India.
Phone Off: +91- 481-2430325. Fax: +91- 481-2430596
e-mail: [email protected]
AMCL MACHINERY LIMITEDSERVICE 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: www.amcl.in [email protected]
• 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
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
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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
Know Your Supplier | MAY 2016
Image: A Mixing
Set-up by Pelmar
Engineering
40
| TIPS |
Essential Questions
to Select the Right
https://rubbermachineryworld.com/2015/03/09/17-questions-
to-select-the-right-rebuilder-for-your-internal-mixer/
17Rebuilder for your Internal
Mixer
Know Your Supplier | MAY 2016
41
| TIPS |
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 |
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
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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.
Date
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TECHNOLOGY PARTNERS FOR CONVEYOR BELT MANUFACTURING IN INDIA