Must try harder
4 Sep 2002
A new study from market consultants Frost and Sullivan says that Polyamide suppliers need to improve delivery and logistics performance.
On price, service and product related issues, suppliers are working in-line with customer expectations but, for delivery issues, suppliers are not performing adequately.
As one customer said: 'The minute they (chemical companies) have a decent order volume they treat their clients like dogs'.
'Anticipated growth in polyamide use in the automotive market is no more than 3%,' says Dr Brian Balmer, Frost and Sullivan analyst who authored the new study - European Polyamide Market: Analysis of Automotive Component Manufacturers.
'To drive higher growth, suppliers must find ways to increase market share. One successful route would be to win over new customers by responding effectively to their needs,' he continues.
Delivery reliability was the most important purchasing need identified by end-users across all categories. One end-user interviewed said: 'delivery lead time is becoming more important. It will be a strong criteria for eliminating suppliers.'
Another end-user commented: 'delivery delays often occur' and he added that regular delays would make the company 'change supplier, because there are 'enough to choose from'.' This is despite the importance of OEM approvals in this industry.
