Outlook on Suppliers
The revival of the steel market and the global increase in economic growth are resulting in the increased demand for our products. Following a period of contraction, our suppliers are switching gears. That is why we are working with them on proactive solutions designed to avoid extended delivery times and shortages in the stocks of materials for our customers. Our many stock locations enable us to respond fast and flexibly to customer demand. In addition, we are increasingly sharing ideas with our customers as early as in the design phase.
Simona Prášilíková,
Purchasing Manager, Van Leeuwen Czech Republic
‘The growing demand for our pipes requires smart interaction with suppliers,’ says Simona Prášilíková, Purchasing Manager at Van Leeuwen Czech Republic. ‘Together with our Purchasing Department I closely monitor the market and our customers’ wishes on a daily basis. The close cooperation with suppliers, with whom we share this knowledge, enables us to consequently close the best deals and avoid a scarcity of materials.‘
‘The crisis years are clearly past. However, the positive market developments also create new challenges. Due to the crisis of prior years, many mills have reduced their production capacity and personnel complement. Now that the demand for steel products is once again growing fast, they are not always able to cope with this demand. That results in longer delivery times. At times there is even a lack of materials, which in turn drives prices upwards. It is a complex situation that affects the entire sector and that is expected to continue for a while. At Van Leeuwen we try to tackle these challenges to the best of our abilities.
We closely monitor developments at the mills with which we cooperate. Where possible, we establish contact with new suppliers, although this is not as simple as it sounds, because the European steel and pipe market is consolidating, and the number of remaining suppliers is steadily decreasing due to acquisitions. Mills are of course also looking for opportunities to further increase their capacity. For example, they are starting to produce larger batches, because this is more efficient. However, mills are becoming less flexible as a result. As a distributor this provides us with new opportunities. Due to our many locations with warehouse space, we can store and rapidly turn over the required volumes globally.
I expect that the global economy will continue to grow and therefore the demand for steel as well. At the same time, the supply and demand market mechanism is being threatened by protectionism. Countries are keeping their borders closed and are protecting their markets, including the United States. In Europe, anti-dumping measures are keeping Chinese manufacturers at bay. This fortunately ensures that European suppliers are once again prepared to invest. In short, I am positive about developments in our business, but an appropriate measure of caution is also in order.‘
Sef Rais,
Purchasing Manager,
Van Leeuwen Belgium;
‘Despite the shortage of steel on the European market, we continue to deliver the right orders to the customer on time.’
‘As Purchasing Manager at Van Leeuwen Belgium, I am responsible for the purchase and management of stock – including specific materials for customer contracts. What stands out for me? Due to the crisis, customers have become much more demanding. Effective cooperation with suppliers is of vital importance for us to be able to meet their wishes. Together we are able to serve customers with specific needs as effectively as possible. And this is what we do. Increasingly more partnerships are being created in which we are involved early in the design phase, for example for the construction of machines. By contributing the best possible ideas, and sharing our knowledge, expertise and experience – with suppliers, as well as customers – we are able to differentiate ourselves from competitors. It is evident that this added value is appreciated. We will therefore continue to differentiate ourselves on this basis over the coming years as well.
In addition, Van Leeuwen, just like our suppliers, is able to meet key environmental requirements. There is increased demand for this. In addition, one of our objectives is to offer new solutions on the basis of digitization. We create smart processes that enable us to align the product portfolio and the supply of materials very precisely with the forecasts we receive from our customers. This way we demonstrate our strength and added value as a distribution partner in the
chain of purchasing to end-user.’
Chris Spittle,
Purchasing Manager,
Van Leeuwen Verenigd Koninkrijk
‘Despite the shortage of steel on the European market, we continue to deliver the right orders to the customer on time.’
‘Van Leeuwen is rolling out a new IT platform – SAP S/4 HANA – to all branches. We are already benefiting from this: the system was first implemented at Van Leeuwen United Kingdom. We observe that our purchasing processes are running faster and more efficiently. Excellent progress, in other words. The prospects for new orders in the United Kingdom in 2018 are good. Hot rolled tubes, along with chrome bars and hydraulic tubes, are and for the time being remain the best-selling and therefore the most purchased products.
Despite the shortage of steel on the European market, we are still succeeding in delivering the right orders to the customer on time. Especially due to our short lines of communication with suppliers and the effective backup of materials at the Dutch branches Van Leeuwen Zwijndrecht and Van Leeuwen Precision, among others.’
In the United Kingdom itself, we try to distribute our stocks as smartly as possible across our three warehouses. This is working out very well at the present time. The fact that we are confident in the market and in our suppliers is also evident from our new ‘Express Service - Hydraulic Response’ from the Brierley Hill warehouse, that guarantees delivery within 24 hours.’