Mutual understanding with the purchasers of tomorrow

At machined component developer and manufacturer RIVAL, we are experiencing new aspects in the collaboration with the purchasers of tomorrow.

It happens when we achieve mutual understanding and interest in entering into closer collaboration, so that both parties can get a good deal from the collaboration, and the customer can also see the benefit in relation to their finished components.
Together with the customers, we have managed to raise the dialogue to a more strategic level, where we look at the overall budget in the production of the customer’s components. The purchasers of tomorrow know that when they have to find savings at their suppliers, there are many other options available to them than just requiring a lower per unit price. They are already experiencing significant savings by entering into an agreement with RIVAL.

This is because at RIVAL we have for many years worked in a goal-oriented way to become the total supplier for our customers, and enter into long-term agreements for the serial production of the customer’s critical and expensive components. We have been very successful in this regard, because our setup, machines and employees are highly suited to solving such tasks, and we can provide the customer with a valuable and overall economically beneficial solution.

At RIVAL, we will rarely be competitive if it is just about producing one single component, and we shall ‘just’ execute the task. Our employees, processes and machines demonstrate their full potential when the task requires something more, and we can collaborate with the customer on challenging, developing and fine-tuning the machining. In this way, we are a developing partner rather than an operating partner.

Many customers see the same benefits and thus want to enter into a closer collaboration with us, both in relation to purchasing and to more technical production aspects. We achieve this mutual and fully utilised collaboration between the customer and RIVAL, when the customers also have a complete overview and have valid forecasts of their future requirements, which they choose to share with us and enter into a long-term framework agreement. In this way, we can often reduce the customer’s component prices by up to 20%, which is significantly more than the five-percent requirement that the customer often starts with.

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Are you also one of those purchasers who must save 5% a year?

In many companies, there is a requirement that savings and optimisations must be achieved annually. This often means that the purchasing department has to lay down requirements for savings with their subcontractors. But savings can be achieved in many ways, and at RIVAL there is a clear approach to this.

“In many ways it’s about not thinking completely conventionally in relation to purchasing and savings,” says RIVAL’s Henrik Holvad. “Our experience over several years is that the customers who are in control of their business and who look at the total costs, also end up getting the best prices – and in that way, it can become a good business both for the customer and the supplier.”

Valid forecasts
The potential for good prices often starts with the customer having valid forecasts for the future production of their components. “It will seldom become a good business for the customer if they start by ordering 200 components, and then repeat the process several times, perhaps over a year,” says Henrik Holvad. “It’s all about knowing beforehand, for example, that 1000 components a year will be used and then entering into a framework agreement to manufacture them with us. It gives us completely different options for manufacturing, when we have plenty of time and can put components in storage, so we can deliver when the customer requires them and at the same time, offer a better price.”

Optimisation of product and production
RIVAL often enters into an optimising process on the actual machining, when it applies to the customer’s components, which can also have a significant impact on the final price. “When our customers enter into a long-term agreement with us, it also makes good sense, and it’s very profitable if we look at how we can optimise the machining process and perhaps optimise the customer’s specifications relating to machining, tolerances and materials,” says Henrik Holvad.

“It happens often in a collaboration where the customer can see the benefits in investing in a start-up project in order to subsequently get more attractive prices on the finished products.”

Significant savings
“Today, many of our customers can for instance see the benefits in entering into framework agreements, where in addition to getting the full RIVAL package with among other things, documentation, measurement reports, quality, reliability of delivery and professionalism, they also achieve overall financial savings up to 20%. But it requires that our partners in “purchasing” at the customer’s location are ready to look beyond the conventional purchasing strategy, where it’s about the price and the product.

You have to see things in a bigger perspective, and the total overall savings must be factored in. This is where the customers can achieve the required savings without having to compromise in areas like quality and reliability of delivery, which are often crucial for the people who will finally use the components.”

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Loyal customers primarily see RIVAL as a developing partner

RIVAL carried out a customer satisfaction survey in the autumn of 2016. The results are clear. Tomorrow’s customers, who want to utilise RIVAL’s developing competencies, experience a good balance between service and price.

“I those cases where we work closely together with the customer on the development and optimisation of the components, the customers are very loyal and satisfied with the collaboration, quality and price. And especially the customer’s technical decision makers value the collaboration,” says Henrik Holvad.

This is in harmony with RIVAL’s strategic focus, and thus a great indication that the company is doing the right thing in the process, which is developing from being an operating supplier to being a partner and total supplier.

Delivery performance must improve
The survey also shows that the customers have noticed that RIVAL’s ability to deliver has fallen from a level that was just above 98%, to a level that is just below 98%. “This is obviously unsatisfactory, and we have a clear objective, which is 98%,” says Henrik Holvad. “We’re working to optimise several areas in the production and planning, which will certainly get us back to the higher level.”

Sharper profile
The survey also shows that several, more periphery customers do not have sufficient knowledge of the competencies and services that RIVAL can offer. “Therefore, from now on we will have an even sharper profile, both in our sales work and in communication. We will have a clear profile in the market at all of the relevant companies,” says Henrik Holvad.

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RIVAL takes its social responsibility seriously

At RIVAL, social responsibility is not empty words but an area that has a significant impact on our daily work. This is why we actively take on responsibility, both in relation to recruiting people into the industry, training new apprentices, refugees in the local community and by providing a new option for flexible jobs.

Tomorrow’s pool of workers
We are very aware of the challenge that our industry faces, with over 300,000 machine operators leaving the industry within the next 10 years and just 100,000 machine operators joining the industry in the same period. This means we need to actively increase the pool of workers. This happens when we collaborate with local schools to stir young people’s interest in engineering, and when we take responsibility for training new apprentices. Often, we have four apprentices employed, which is a significant number in relation to our size. We know how important it is for the individual apprentice and for development in our industry when young people get off to a good start with a good education in an area they are interested in.

“Industritekniker – Talentsporet “(Industrial Technician – Talent Track) – what is it?

“Industritekniker – Talentsporet “(Industrial Technician – Talent Track) is a complete industrial technician course at a higher technical level. The course is academically and technically demanding, and is aimed at ambitious students.

The length of the course and number of semesters is the same as the standard industrial technician course, but the level is higher, and the allocation of subjects is different.

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LORC Nacelle Testing

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Items used to test wind turbines require spikes of excellence

For a number of years, RIVAL has been a regular supplier to the demanding wind and oil and gas industries and has excellent ongoing collaboration with the engineering firm R&D.

Right now, RIVAL is busy processing some large steel plates to be used in the foundation for a nacelle test bench at the LORC Nacelle Testing project at Lindoe Offshore Renewables Centre. The test centre is being constructed at the former shipyard, now Lindoe Industripark. Here, some of the world’s most advanced facilities will be available for testing wind turbine nacelles of up to 10 MW. The test centre is expected to be ready in 2014.

Valuable supplier
RIVAL is part of the project as a sub-supplier to the engineering firm R&D. R&D is producing the nacelle test bench in collaboration with the GE consortium partner in the LORC project. “I need a business partner who can take full responsibility for the items to be produced,” says Senior Project Manager Kent Frank Pedersen from R&D. “In this regard, I have found a good match in RIVAL, who not only has solid skills in the processing of items for e.g. the offshore industry but also assumes full
project responsibility for aspects such as welding, annealing and surface treatment carried out by their sub-suppliers.”

Mutual benefit
R&D is a project management and consulting engineering firm specialising in mechanical and software solutions for the industry. R&D offers everything from the development of production of test equipment and system commissioning to employee training and straight-forward advice and consultancy services. In the case of R&D and RIVAL, this collaboration benefits both parties. R&D typically uses RIVAL as a sub-supplier in connection with offshore industry jobs, and RIVAL uses R&D’s engineering skills in connection with specialised tasks requiring development of specific machinery, software or other types of equipment. RIVAL has thus recently chosen to involve R&D in a job for the wind turbine industry, where there was a special need for R&D’s engineering skills as an excellent adjunct to RIVAL’s own skills.

Lives up to expectations
Kent Frank Pedersen has now collaborated with RIVAL for just over four years, and he is very satisfied with the collaboration.
“RIVAL lives up to all the expectations I had from the beginning,” says Kent. “The company has a good reputation for solid processing skills, especially for large items. In addition, they take full project responsibility for the individual items, which fits in really well with the kind of jobs we have.”

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Svendborg Brakes

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Framework agreement with Svendborg Brakes on advanced serial production

RIVAL has for several years had long-term framework agreements worth millions with Svendborg Brakes. It takes control of documentation and quality, which RIVAL can honor.

Supply Chain Supervisor John Helskov Hansen from Svendborg Brakes has known RIVAL for many years, and the company was one of the first that appeared on the retina when Svendborg Brakes had to find a new partner for long-term agreements on the production of particular Brake houses and brake calipers.

Control of the quality
Svendborg Brakes manufactures brake systems for wind, offshore, crane and mining industry. “For us it is crucial that there is control of the quality of the items we receive from our suppliers, since it also has great significance for our customers,” said John Helskov Hansen. “Here we have really good experience with RIVAL. Over the past few years we have been produced many topics with them, there has actually been something to postpone the quality. It is also our experience that the overall economy is sensible. The price will always be up for discussion, but we have a feeling that we get a really good value for money. ”

Cost Optimal production
Svendborg Brakes has concluded several framework agreements with RIVAL on the production of brake houses and brake calipers. “Prior to the agreements we have made several test series and has focused on documentation, certificates and measurement reports,” says sales manager Christian Aarup from RIVAL. “It is important for both the customer and us that all the preconditions are in place before we start the large serial productions. It provides the most secure quality and cost optimal production for the benefit of both parties.”

Development of new surface
As a part of the collaboration, RIVAL has also been a sparring partner for Svendborg Brakes concerning the choice of a new surface for a stamp. “It is a great advantage for us that RIVAL also have the skills to be part of such a development,” says John Helskov Hansen. “In this way we can collect both development and production in one place, which facilitates the whole process for us.”

The RIVAL package
“In a task like this, we also focus on offering the customer the relevant parts of The RIVAL package,” says Christian Aarup. “We have in this case been very aware of that we add the customer the greatest value by thinking development, documentation, quality, delivery performance and price together into a package that exactly fits Svendborg Brakes.”

Continued cooperation
The incoming framework agreements between Svendborg Brakes and RIVAL runs according to plan. “When the agreements expire, we take them always under review, as our needs may have changed, and for example, be produced completely different topics,” says John Helskov Hansen. “However, I am convinced that we will continue to enter into agreements with RIVAL. We are very satisfied with their skills and the quality they provide. It is also a big plus that we know each other well and can always talk to us rightly about things. ”

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