Worldwide Stocks
Menno Groeneveld,
European Assortment Manager,
Van Leeuwen Stainless, Beesd, the Netherlands
Menno Groeneveld has worked for Van Leeuwen Stainless, the ‘stainless steel specialist’ within the Van Leeuwen Pipe and Tube Group, since 2007. He has developed a special antenna for the erratic stainless steel market. ‘In comparison to carbon steel pipes, our products are slow movers; the demand is relatively low and there are rapid price fluctuations. Van Leeuwen Stainless has the knowledge and experience required to make sure the right materials are ready for the customer at the right location, in the right quantity and at the right price.’
‘Nowadays customers want to receive their deliveries as fast and complete as possible, at the lowest possible costs,’ says Groeneveld. ‘Many of our customers have in fact stopped maintaining stocks of their own and expect us, as partner, to maintain sufficient stocks to be able to supply their needs. This trend is observed in all segments, in the mechanical engineering sector, the petrochemical industry, and in the oil and gas segment.
For us it is therefore key to forecast the supply and sales volumes as accurately as possible. We determine stock levels on the basis of
various parameters, such as customer demand, transportation times and the level of service the delivery is expected to meet. To determine the items to include in our product range, we conduct market research to identify the demand side, as well as the supply side. In principle, we assess customer-dedicated stocks or general stocks the same way. After all, demand always starts with one customer. For example, last year we received a demand for a specific flange product range from a customer in the oil and gas segment. Our market research showed that there were another ten customers or so with an interest in having these flanges delivered to them. As a consequence we were able to offer this customer group favorable pricing and purchase guarantees.
The erratic market conditions are putting the predictability of both the supply and sales volume of our items severely under pressure. This can sometimes make it difficult to continuously offer our customers the right service and availability of materials.Fortunately our team excels in this.
Van Leeuwen is working hard on the one-stock principle: making the diff erent stocks in our European branches available to customers through means of a single database and a single IT system. Stainless steel products generally involve smaller batches and relati vely low transportati on costs. In the future a webshop and an order tracking system could therefore be of major added value to our customers.’
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‘ Van Leeuwen flawlessly |
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Elodie Marion, |
‘The more you know about a customer, the better able you are to anticipate its demands and needs. This is why we combine a customer-oriented sales strategy with smart stock management. We are able to continuously adjust our product portfolio to the needs of our customers: at any given moment we have the right product at the right stock level.
In addition, we apply our knowledge about the quality, capacity and the operating radius of the mills in our network to provide advice to the sales teams of our customers. Advice that ultimately ends up with the end-customer. Due to the many years of experience within Van Leeuwen we have a perfect sense of the global market and we flawlessly anticipate fluctuations in demand and prices. As a result, we are able to offer our products at a good price, but even more important we can quickly respond to changes in demand.
The combination of global stocks with the specialized knowledge of our European network, ensures that we are able to respond to any request.’
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‘ We stay in constant contact with the mills, to acquire a good mutual understanding of market trends and price fluctuations.’ |
| Ivan Poh, Assistant Purchasing Manager, Singapore. |
‘A recent project that I am working on is the Block-A Gas Project, the construction of a natural gas processing plant by the energy firm MedcoEnergi in the Indonesian province Atjeh. Under contract to JGC Indonesia, Van Leeuwen supplies the materials for this project. The plant is expected to go into production in the first quarter of 2018. We supply from global Van Leeuwen stocks, as well as directly from the steel mills in the region. Our aim is to supply the materials at the right time, at the right price and with the right specifications. In addition to business contacts, I also invest in personal contact with the customer’s procurement officer. Often this provides me with new insight into the customer’s specific needs and how Van Leeuwen, together with its suppliers, can respond to this. For example, for this project we arranged for the mills to supply precisely the right numbers in each package, thus saving the customer significant repacking and transportation costs.
By listening attentively to customer needs and providing relevant answers, we continuously improve our service delivery. We also stay in constant contact with the mills, to acquire a good mutual understanding of market trends and price fluctuations. This provides us with the insight we need to prepare us for upcoming orders and to prevent a scarcity from occurring in our stocks that could disrupt our daily distribution.’