The supply chain manager at robos-labels talking about the current situation
Few months prior to the beginning of corona crisis the company management paid special attention to the supply chain management. In the meantime nothing is the way it used to be, when the long-term proven supplier relationships were enough to secure the purchasing of raw materials. Purchasing units must go completely new ways to secure the competitiveness of their companies.
Corona has relentlessly revealed the weak points in the supply chains. How well positioned was robos-labels for this challenge?
Hüging: By the courtesy of our long-term partnerships with our main suppliers and our subsidiary Folit we were continuously well supplied with raw materials at the beginning of corona crisis. For the most important materials and production means we ourselves additionally maintain a comprehensive safety stock.
There were individual materials which were not available. Whole in one though, we made it well though the first time. We had the luck that our biggest customer is a system-relevant manufacturer of laboratory products, whose needs significantly increased due to corona. Due to the system relevancy of our customer the material availability for us was ensured. The delivery of products as well was not a problem because our partners UPS and Dachser have worked very reliable.
From which countries and regions does robos-labels obtain its raw materials?
Hüging: The production sites of our biggest supplier are all in Europe. Partially they obtain the parts of their products from Far East, so that in the beginning of the year there also were delivery problems. Moreover, we have two suppliers with production sites in Great Britain. The inks we use will be manufactured in Baden-Wuerttemberg and we order our tools directly from the manufacturer in Northern Germany. The roll cores come from Bavaria.
What were and are the consequences for robos-labels and its customers?
Hüging: There were and still are considerably longer delivery times. Materials, which previously were available within one or two weeks, have now a delivery time of 6 to 8 weeks, in individual cases up to 6 months.
What measures took robos-labels in response?
Hüging: For us this means that we must plan even more detailed and forward-looking and are dependent on the forecasts of our customers. According to those we try to make the material available timely to the desired delivery time. We ask our customers to order early and to plan the delivery time of minimum 8 weeks. We are now about to extend our ERP system and with the help of digitalization to plan our acquisition even better.
Did you have to break new grounds to secure the supply of your customers?
Hüging: Yes, we had a concrete case where the safety material was suddenly not available at all. We have found an alternative material which we offered to all customers. A major part has accepted that and the labels could be delivered on time.
The customers who did not agree with the switch have received partial deliveries with the former material from the stock remainders. This way all customers could be satisfied within the frame of possibilities.
Another point is that in the meantime in the initial phase of customer projects we offer at least two materials with identical technical data from different manufacturers to be able to minimize the risk of possible delivery difficulties from the beginning.
What advantages does the membership in the EKDD purchasing cooperative?
Hüging: The EKDD helps us to warrant a long-term pricing stability. Additionally, as a member one is considered not a small printing company, but an important puzzle part of a big community, which represents a totally different market power to suppliers by the pooling of purchasing requirements. Moreover, we can profit from the knowledge of the group when for example an exchange about alternative materials takes place, and we help each other if materials are urgently needed somewhere and we possibly have unused remainders in stock.
The price negotiations take place between EKDD and the suppliers, this way we can focus on other things. Moreover, the purchasing cooperative has a higher purchasing volume than robos-labels and hence can negotiate prices and services in a completely different way.
What is the current situation on the raw materials markets in regard to the robos-labels products?
Hüging: The situation is steadily tensed like already at the end of 2021 and we cannot foresee the end of this development at this time. Long-term planning is still difficult, which affects especially (negatively) the pricing of current and new projects.
This means specifically that the costs for raw materials, energy, as well as for transportation continue to increase, and the worldwide delivery chains are still very fragile, which means that limited and longer delivery times must be expected. The agreements of price stability from the side of suppliers are currently possible for maximum 4-6 weeks.
You have the subsidiary Folit in house, which distributes the labelling materials and offers them cut to size. Is this an advantage during this purchasing crisis?
Hüging: This is absolutely an advantage. Here we have very short paths and in case of uncertainty a call is enough if the material is in stock and two hours later it is already at our printing machine. Folit is one of the biggest 3M distributors in Germany and has many materials available in stock, which we get supplied from Folit as needed cut to size individually and within shortest time.
What experiences have made you fit for this challenge?
Hüging: I originally come from the forwarding industry and there you learn to perform best under time pressure and tough working conditions. In forwarding often unpredictable things happen and you have to react fast. That made me fit to accept the challenges at robos-labels and to look for new solutions.
Do you have a life motto:
Hüging: Everything will be fine.
Thank you for the interview!
About:
Viktoria Hüging is 38 years old and has completed dual studies in business administration at the BA Mannheim focusing on forwarding, transport and logistics. For 2.5 years she works at robos-labels. Along with work she manages her family with 2 children of school age and is politically active.
