Success with Service PLUS

Identifying solutions

The key issues to be solved were supplier management and logistics costs, which were shown to be negatively affecting KPIs. Firstly, Sandvik felt that it needed to consolidate its suppliers, and secondly that purchasing parts from outside of the US was driving up logistics costs.

“Trelleborg Sealing Solutions has experience with these kinds of issues. We pride ourselves on being a one-stop-shop, providing as many components as possible from a single source and have helped many companies to expand their operations to other countries with Trelleborg’s Service PLUS logistical backing. This project fitted perfectly with our global-local philosophy,” says Susan Korb, Sales Engineer for Trelleborg Sealing Solutions.

Trelleborg’s sales engineers worked with internal customer service advocates and its special handling department to devise solutions that would add value to their customers’ operations and meet their objectives.

“When we started looking into it, we saw that we could improve Sandvik’s processes beyond what they were asking for,” says Susan. “We created a set of metrics to measure outcomes, identified any possible roadblocks and we proactively communicated with the customer to help smooth the transition.”

Solving the issues

Taking Trelleborg’s ideas on board enabled Sandvik’s seal suppliers to be cut to three from nearly ten; a large reduction in dealing with different companies and simplifying business significantly. Logistics experts identified the ideal location for stocking as Trelleborg’s central Fort Wayne facility, reducing supply chain costs. This met the main objectives, but Trelleborg Sealing Solutions didn’t stop there. “Having helped others with this kind of challenging project enabled us to understand Sandvik’s processes better and to propose other related services that would further ease their business and add value at every step,” says Susan. Specifically, Trelleborg’s dedicated Service PLUS experts provided kitting, individually bagged parts and customerbranded packaging to ensure that the correct products were well protected and would require fewer operations by Sandvik.

The next steps

To further improve the operation, Trelleborg Sealing Solutions also proposed related services. “To provide more visibility of the supply chain, Trelleborg suggested the use of its shipping portal, giving real-time reporting on shipment locations and lead times,” says the Project Manager at Sandvik. “We also offered the services of our technical teams to Sandvik’s field teams, which they are using to address issues as they arise,” says Susan. The next step is to implement an EDI order management system, to further streamline operations.

The new Service PLUS processes have helped Sandvik to achieve its aims in the US. “We’ve supported Sandvik in reaching their KPIs; we’ve reduced its number of suppliers, improved its logistics and helped increase its market share. It’s benefitted both it and its customers through increased vendor loyalty and decreased price sensitivity for the enduser,” finishes Susan. “We look forward to working with Sandvik again.”

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