As a leading and stock-keeping specialist in pipes and pipe and tube applications, we constantly invest in the optimal design of our warehouses and distribution processes. Supply reliability is a key concept in this respect. Our improvement strategy rests on five pillars: efficiency, footprint, transport, service, and integration & cooperation. In 2018, we once again made significant improvements.
Last year we increased efficiency by automating and digitalizing processes and by introducing new machines and robots. We devoted a great deal of attention to the implementation of a new SAP S/4 HANA based IT platform that we are rolling out to all branches. Thanks to this IT platform we can work more efficiently, for example through the more advanced use of barcode scanners. We are now able to digitally communicate with large customers and process orders. Through a number of webshops we offer customers the digital convenience they expect of a business partner in the supply chain.
Modifications in our warehouses in Zwijndrecht (the Netherlands), Belgium, the Czech Republic and Australia are making it possible to more effectively store our stocks. We do this by adjusting routings and by acquiring automated, modular warehouse management systems. In addition, we have refreshed a number of transport contracts. By making new arrangements with our carriers we are even better able to respond to the customer demand for shorter material delivery times. Generally within 24 hours, enabling us to continue to differentiate ourselves in the future and generate customer loyalty.
Because the demand for custom work is increasing, we are constantly expanding our services. We do this for treatments such as cutting, as well as for marking and packaging materials, and conducting inspections or tests. In all of these ways, we offer our customers added value. The integration & cooperation pillar influences all of the other four components of our improvement strategy. For example, we are working together with our customers on joint electronic data interchange (EDI) web portals, as a result of which our processes increasingly better match the processes of our customers.
Another important step in the improvement process is the development of a standard method that enables us to precisely measure the supply reliability of our European branches. This is a critical factor in securing our operational excellence – and consequently our supply reliability – in the future. Eric Veraart, Corporate Supply Chain Manager & QSE: ‘Van Leeuwen endeavors to have our internal processes be as consistent as possible with market developments and the wishes of our customers. This not only requires innovations, it also requires additional strength. This is why we significantly strengthened and expanded our Logistics, Supply Chain and Quality, Safety & Environment team last year. With two new project managers, we are giving improvements in the area of transportation, automation and digitalization a boost.’