Transcript Document

The Chamco
Partner in Partnership
Eric Gibbons
Mark Whiteman
April 22, 23, 2002
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Agenda
• Presentations Completed
• Surveys Completed
• Survey Difficulties
• Opportunities
• Obstacles
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Presentations Completed
Norske Canada: Elk Falls
Norske Canada: Crofton
Harmac Pulp: Nanaimo (Pope & Talbot Group)
Canfor: Intercon
Northwood
P.G. Pulp
QRP: Quesnel (high resistance to change)
Celgar Pulp: Castlegar
Agrium: Edmonton
Pope & Talbot: McKenzie
Caribou Pulp (not prepared to change)
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Surveys Completed
Companies Surveyed:
Status:
Norske Canada: Elk Falls
Cross-over schedule complete
Crofton
Cross-over schedule complete
Harmac Pulp: Nanaimo
Client provided selective info only
QRP:
Cross-over schedule complete
Quesnel
Canfor: Intercon
Northwood
Huge Inventory Schedules
P.G. Pulp
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Survey Difficulties
• Availability of information, ex. mill has delayed
progress.
• Very significant time is required to complete a
cross-over schedule
• As a rule, only 60% of inventory line items are
transferable and can be priced.
• Estimates used for 40% of value to move the
exercise on.
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Opportunities
• Norske Canada is strategically evaluating
Pump Purchases as an identified avenue to save
costs.
• Canfor also prefers strategic sourcing & was
best able to identify the commercial & logistical
directions required.
• Unhappiness with Austin Denholme as a
distributor.
• Some mills have been adversely affected by
pirate parts.
• Solve some “Wicked Problems” to gain
credibility.
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Obstacles
• Mills are self-sufficient in pirating turning
assemblies.
• Peerless has no market share.
• Peerless/Chamco need to establish credibility
with respect to:
• Being an OEM Supplier
• Supplier of interchangeable parts
• This is a long term sales process.
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More Obstacles
• The Sales Process needs to create confidence &
reliability over multiple departments & centres
of influence such as:
– Engineering (Paper Machine 1, 2, 3)
– Maintenance (Paper Machine 1, 2, 3)
– Production (Paper Machine 1, 2, 3)
– Purchasing (Central)
• Existing parent company supplier contracts:
– Weyerhaeuser
– International Paper
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More Obstacles
• B.C. economy is very poor and up-front pump
prices are at cost.
• Rate of purchases of casings is low.
• Some mills feel that a 10-20% cost saving is too
little gain to risk production stoppages.
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Solutions
• Solve Wicked Problems sometimes
unassociated with Process Pumps to gain
acceptability ie. Pre-ANSI Pumps.
• Offer designed programs to replace Pre-ANSI
Pumps & defunct pump manufacturers, ie.
Allis Chalmers.
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More Solutions
• Joint visits (Peerless/Partner) to key plant
personnel.
• Hold Pump Schools with a Process Pump bias.
Two pioneering schools now being set up for
June.
• Consider the employment of a Process Pump
Consultant (part-time) to balance process
knowledge.
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Key Results
• Two Quotes Issued:
– Celgar - required Titanium
– Harmac - not a Peerless size
• Chamco has spent huge amounts of time
administratively & sales wise and is known as a
competitor.
• Chamco is participating in the PG show and
will focus on Process Pumps.
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Key Actions Over the
Next Quarter
• DMI:
– Edmonton - Bob Kautz
– satisfied with service levels.
– Issue: Move from 317 to CD4
– DMI happy with 317
– Will consider CD4
– Required: In-depth technical
justification to switch to CD4.
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• Agrium:
– PIP Program presented as a Corporate
Rotating Equipment Resource.
– Next Action: Six month follow-up.
– Agrium is attempting to get their
“picture” together.
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• Raylo Chemicals:
– 3x 8196 pumps bought as a result of
PIP presentation (January 2002).
– Were unhappy with deliveries.
• Dow Chemicals:
– Direct buyer of Goulds.
– Chamco unable to compete.
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