2011 was the best year so far for the sale of pumps to the Machining Industry. Sales increased by 35 per cent in comparison with 2010, and this trend will continue in 2012.
Normally, the individual sales companies around the world will service customers who need an SP, CR or ALPHA2 pump, for example. But this is not the case in Machining Industry.
- Less than 50 companies cover more than 80 per cent of the market, and we therefore need to influence large international producers of tools for the Machining Industry, says Ole Gerlich, Sales Development Director for Machining Industry, Group Sales & Service.
He is head of the global set-up with competence centres in Asia, the US and Europe. And the largest customers have now become global and therefore need to be serviced all over the world.
- Our competence centres allow us to always assist our customers locally, regionally and globally with technical and commercial expertise, and this is essential to them, he says.
And the top and bottom lines clearly show that this business model is working. Last year, sales increased by 35 per cent in comparison with the year before, and Ole Gerlich says that this trend will continue during the first six months of 2012.
Few major customers
A clear pattern emerges when looking at the way in which the turnover is distributed. The 12 major customers are behind more than 45 per cent of the turnover, and in Ole Gerlich’s mind, this is a good indication of the way in which the market works.
- There are relatively few large players, and it is becoming even more important to establish global relationships that reach beyond the individual company, he says.
- With a global set-up, we are able to ensure that a global customer will receive the same uniform service from Grundfos, no matter where he is or where he moves, and at the same time, we do not have to compete with each other internally. This is not a means to take away a local company’s obligations in relation to the customer, but to help form a central point for the benefit of the customers. This really makes us stand out from our competitors, he says, explaining that already, numerous examples show that this business model has improved customer loyalty significantly.
Supplier to the car industry
The main products sold include MTR, MTS and MTA pumps which are built into large machine tools. The machines process a variety of materials, for example engine blocks and engine components in the car industry. Pumps that can deliver the correct pressure are needed to lubricate and cool down the machining process, and this is where Grundfos enters the picture. The majority of the machines to which Grundfos delivers pumps are used in the car industry. And, according to Ole Gerlich, this is the reason why hard work is being done to become an approved supplier to the companies that specify the car factory itself, for example.
- Grundfos has a number of advantages versus the competition. For example, we can deliver all pumps that are used in the production process, including cooling, component handling, paint cubicles, air conditioning and, of course, handling of clean water and wastewater, he says. He goes on to explain that it is important to be able to meet all needs when constructing a car factory.