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Understanding a manufacturing customer's systems can increase distributors' business

Distributors and manufacturers that team up to develop a systems approach can best meet their customer needs

By Dan Donnelly -- Industrial Distribution, 5/1/2008

Taking a “systems approach” to your customers’ needs is something distributors can implement with their manufacturers—with mutually profitable results.

The metals industry, for example, has special rotating equipment needs that can offer your distributorship opportunities for increased business. The key is to take a systems approach—one that will strengthen your position as a strategic partner.

The systems approach stresses efficient use of plant machinery and assets. It calls for a deep understanding of application requirements and it underscores the total cost of ownership, rather than simply focusing on replacement parts and components. The strategy involves careful management of the supply pipeline and usually entails close collaboration among distributor, supplier and end user.

This approach is particularly well-suited for the metals industry, where a prolonged period of consolidation has drained many companies of knowledge, experience and the human resources necessary to manage certain business processes. As a result, steel, aluminum and other metals producers are increasingly relying on their supply chain partners for key services, such as inventory control, asset management and preventive and predictive maintenance.

Distributors serving the metals industry with rotating equipment technology can often team with their suppliers to provide expertise covering the entire application. This can lessen the risk of shutdowns.

Consider a hot-gas fan that is experiencing premature bearing failure in a steel mill application. Changing out the fan bearing solves the immediate problem and keeps the fan running. But it does not address the underlying cause. Bearing problems are likely to recur.

With a systems approach, the distributor and manufacturer focus on the complete fan application and process to identify the root cause of bearing problems. Once the cause is found, a solution can be implemented to correct the problem.

SKF, for example, recently partnered with our authorized distributors to improve bearing performance in a number of metals-industry fan applications. Bearing life in some production fans has increased from an average of about six months to more than three years.

In addition to application support, metals-industry customers can benefit from your assistance in managing the supply pipeline and anticipating future maintenance needs.

Consider product availability. The large bearings and other components used in metal-making equipment can have a long manufacturing lead time. This factor, along with the high costs of downtime, has made distributor stocking services increasingly important to metals producers.

Condition monitoring is an area where distributors can provide valuable information regarding machine health. With this data, you can forecast repair and maintenance needs far in advance. Your distributorship can then assemble kits containing all the necessary components for a complete repair, including motors, bearings, seals, belts and lubricants. The kits can be shipped to customers in time for planned shutdown periods. This practice reduces overstocking and eliminates the need to expedite single components on a rush basis.

You might also be able to support your customers with bearing reconditioning services available from your bearing supplier. A number of technically expert bearing producers offer such services. Under these programs, large bearings are often returned to like-new condition at a fraction of the cost of purchasing new bearings.


Author Information
Dan Donnelly is vice president of sales, SKF USA Inc., based in Kulpsville, Pa. He can be contacted at dan.j.donnelly@skf.com or (724) 891-1192.

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