OPENNESS ABOUT YOUR MARGIN? YES OF COURSE!
Recently, TriStar Industries in Roosendaal and PPG Amsterdam have completed the first and most important phase of a special project. That is to say, the project itself was perhaps not all that spectacular, although interesting enough: the development of a new cleaning product for the bucket cleaner (kuipenreiniger), and the realization of a cost saving of 30% in relation to the current situation.
The special thing was in the approach of both parties: TriStar has developed a recipe for PPG, and presented an open cost price calculation. That may be called unique in this market.
Let’s go back to the beginning for a bit.
PPG develops, manufactures and markets paints and coatings worldwide in 70 countries, among brands known to all, such as Sigma Coatings for the professional and the Do It Yourself brands Histor and Rambo.
In Amsterdam, two different architectural coatings are being developed and produced: one based on the Alkyd solvent and one on water.
Production takes place largely in large stirring tanks, from 5000 to 10000 liters. But because smaller quantities are also produced, PPG also uses smaller containers, the so-called TCs (Transportable Containers).
The Technical Service of PPG Amsterdam is engaged in the maintenance, repair and cleaning of all machines and installations on the site. So also with the cleaning of the TCs. Joop van Golstein, who is in charge of this project on behalf of PPG, can tell about this during a guided tour.
“The contaminated TCs are cleaned in a large bucket cleaner. The TC is placed on a turntable, secured, and tipped forward in the machine, after which nozzles under high pressure spray a cleaning product into the TC, which circulates for 15 minutes. After the drying process, all coating from the TC disappears and you see blank steel again. Sparkling clean.
Of course we already had a cleaning agent for use in the bucket cleaner. We have already successfully purchased other TriStar products. So when we started designing a project to achieve at least 30% cost savings, TriStar came into the picture. Within PPG we set two hard targets: a product that cleans at least as well and is no more harmful to the environment than the current product, and 30% cost reduction”.
With this message, Paul van den Berg, director of TriStar Industries, started working.
“We have developed and tested a custom cleaning product, and thus amply fulfilled the requirements. So far it still sounds pretty standard, but our joint approach was absolutely lucrative, innovative and non-conventional, and added a dimension to the success of this project.
Naturally, such a (consultation) process of a number of months requires a relationship of trust between producer / supplier and customer, and of course a number of legal basic issues are dealt with, which have now been covered without much effort.”
Joop is enthusiastic about the final outcome of their efforts.
“The advantage for PPG is of course that we have been able to implement cost savings, that we have a product that works well, and that it has been calculated on the basis of an open cost price”.
Paul fully shares this opinion:
“For TriStar the advantage is that from the start we could be clear about our calculation and about the margin we wanted to realize. In addition, our challenge is that we stay sharp in our costs, quality and service. We like to take up that glove.
We are already busy looking at the extent to which the product can be regenerated. Tests have already shown that we can still assume a 50% return. In addition, of course, the total regeneration process (collection of contaminated detergent, distillation, disposal of stubborn waste and return of the regenerated product) must be cheaper than supplying new product. We are working hard on that. In addition, we want to further develop the product to make it even more effective, safer and more environmentally friendly.”
In short, there is still enough challenge. A very important learning point for both Joop and Paul is that this approach proves that you can achieve perfect results with openness and mutual trust. “Together you always go further”.