Penrice Soda Holdings is Australia“s sole manufacture of two of the country“s vital raw ingredients used in a range of industry applications: soda ash and sodium bicarbonate. In addition to supplyin…
Penrice Soda Holdings is Australia“s sole manufacture of two of the country“s vital raw ingredients used in a range of industry applications: soda ash and sodium bicarbonate. In addition to supplying soda ash and sodium bicarbonate, the company, in operation since the late 1930s, provides products used in a range of industries including glass, metals, cement and lime, mining, building and construction, environmental control, and water purification. Penrice also supplied 74% of the soda ash and 88% of sodium bicarbonate used by Australian industry in 2004, and must ensure that production remains both quickly and efficiently. Penrice procurement manager Paul Saliba explains how important it is to work with the best possible suppliers: Being a 24/7 operation here, security of suppliers is crucial, he says. We therefore look for a number of elements when sourcing suppliers to the company. Saliba identified the following: o company risk and exposure: including a supplier“s ability to supply according to company demands, reliability and quality of service, along with price competitiveness but without compromising quality; o track record: performance history for existing suppliers and performance in similar industries for new suppliers; o value-added services: the ability of suppliers to be proactive and show initiative to continuously work with the company on reviewing their goods and services, so as to offer cost reductions for both the supplier and Penrice as a client; o quality – a crucial feature: quality must not jeopardized by reduced prices, as poor quality affects everything downstream, right to the customer, and could involve significantly higher costs to the business if and when customers start to complain; o supplier location: this involves aspects such as the lead-time of product deliveries, along with the ability of the supplier to be reactive to any changes in the company“s needs; o environmental awareness: Penrice aims to support suppliers that have Environmental Management Systems certification, in response to the current focus on environmental performance and the increasing pressure of environmental regulations; o after-market support: ability and willingness of the supplier to support Penrice after goods and/or services have been provided, including elements such as technical support and product warranty; o customer support and communication: Penrice thoroughly considers the supplier“s ability to provide service and support. Thanks to these assessments, Penrice can be sure of having strong suppliers. In addition to all of these elements, we must have suppliers who are proactive and show initiative so that win-win outcomes can be determined for both companies, says Saliba.