There is light at the end of the tunnel. The steadily improving corona statistics provide hope, and we are looking forward to better times. Some even say we are heading for exceptionally good times, economically speaking. Sunshine after rain! But before we can enjoy the sun's rays, we will need an umbrella from time to time. There are delivery problems with raw materials to contend with. And rising prices. Luckily, we saw the storm coming, and we have been able to avert the worst problems.
Eagerly looking forward to a rosy future
The corona monster that has held us back for the last 18 months is not dead yet, but the end is certainly in sight. We can all start to dream about a better future. We are itching to spend some of the money we've been forced to save. We even hear talk of a new 'roaring twenties' and a 'golden decade'. Sustainability objectives have been set down in the European Green Deal, and enshrined in law. The 'green economy' is becoming a reality. Looking at all this it seems that there are indeed some good years to come.
A bumpy road ahead
But this isn't going to happen without some effort. Sadly! There are sure to be obstacles along the way. For one thing there are the scarcities in the materials market. There are halts and breakdowns in the raw materials supply chains. And that leads, in turn, to steep price rises in various markets. Uncertainty about how all this will develop does nothing to simplify matters.
What will be needed is a significant shift in our thinking, moving from the 'just in time’ approach we have taken in past years to ‘just in case’. Saving up stock ‘for a rainy day’ as it were. Businesses that work in this way will be the ones who can continue to guarantee speedy deliveries. Even if the world seems to be falling apart.
EREA are ahead of the game where supply problems are concerned
We have been applying this preventative approach for years, and we will continue to build on those foundations. Our stocks of both end products and raw materials have been kept at a level that will ensure optimal delivery times for our customers. We are calling on suppliers all around the world for our crucial raw materials. This allows us to respond flexibly to demand, while local problems are less of an issue. So we are keeping a very close eye on delivery times.
Ramping up stocks during the crisis
At EREA we saw this storm coming reasonably early. So we continued with production, keeping product stocks up to level and even ramping things up a little. Our end customers have therefore experienced only slight delays if any in the delivery of their transformers. We are always happy to invest in customer satisfaction.
Good supplier relationships are now reaping rewards
And we have also been taking the necessary measures on the raw materials side. We have built up excellent relationships with our long-term suppliers, who were quick to alert us to the potential for shortages and longer delivery periods. Those relationships meant that they gave us precedence when we wanted to increase our own ordering levels. This early action meant we were able to cope well with any delays.
We also like to put our cards on the table with our own end customers. We have, of course, been obliged to pass on the spiralling price increases, but our regular clients have had 6 weeks’ notice of the price rises, which we have done only once in each quarter.
EREA as a source of inspiration
We want our approach to serve as inspiration for other businesses and organisations. Strategically maintained stocking levels guaranteeing speedy deliveries are, after all, crucial for a sustainably growing economy and industrial base.
And at EREA we have already been doing our part.
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