Transcript Document
The Chamco Partner in Partnership Eric Gibbons Mark Whiteman April 22, 23, 2002 7/18/2015 Chamco Industries 1 Agenda • Presentations Completed • Surveys Completed • Survey Difficulties • Opportunities • Obstacles 7/18/2015 Chamco Industries 2 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) 7/18/2015 Chamco Industries 3 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 7/18/2015 Chamco Industries 4 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. 7/18/2015 Chamco Industries 5 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. 7/18/2015 Chamco Industries 6 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. 7/18/2015 Chamco Industries 7 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 7/18/2015 Chamco Industries 8 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. 7/18/2015 Chamco Industries 9 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. 7/18/2015 Chamco Industries 10 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. 7/18/2015 Chamco Industries 11 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. 7/18/2015 Chamco Industries 12 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. 7/18/2015 Chamco Industries 13 • Agrium: – PIP Program presented as a Corporate Rotating Equipment Resource. – Next Action: Six month follow-up. – Agrium is attempting to get their “picture” together. 7/18/2015 Chamco Industries 14 • 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. 7/18/2015 Chamco Industries 15 7/18/2015 Chamco Industries 16