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 IESA and Rhodia find the right chemistry
 Rhodia
is a world leader in the speciality chemicals marketplace with global
sales exceeding $6.5 billion. The company has eleven manufacturing
sites in the UK, including a facility in Widnes, Cheshire that produces
food-grade phosphates for application in the bakery, meat and dairy
markets.
Reviewing its maintenance, repair and overhaul operations (MRO)
at Widnes, Rhodia identified the need to reduce working capital
as well as to obtain better information on spares and maintenance
costs and more detailed reports on stock movement. The company was
not looking to save money, but to improve the operational aspects
of stores management and financial reporting through a project that
would prove at least 'cost neutral'.
Working with Integrated Engineering Stores Associates (IESA), Rhodia
has been able to achieve all of these objectives.
Immediately following its appointment, IESA took full responsibility
for engineering stores management at Rhodia’s Widnes site
where significant opportunities were identified to reduce stock
surpluses and generate savings in procurement 'through stock'. IESA
also worked successfully within the terms of existing group purchase
agreements to increase Rhodia's compliance levels and thereby achieve
maximum discounts and rebates.
Working with Rhodia, IESA has proved that it is able to provide
unique solutions when opportunities arise. An example of this can
be found in the sourcing of specialist products used by Rhodia in
the container transport of hygroscopic materials to extract and
expel moisture from the atmosphere.
Here, Rhodia spends tens of thousands of pounds every year on a
product that is available in the UK from only one authorised distributor.
Opportunities to reduce costs appeared none existent, however, IESA
provided an innovative solution in approaching the manufacturer
and establishing itself as the second UK distributor for the product.
It was then able to pass significant cost savings to Rhodia by eliminating
the distributor’s sales margin.
IESA is helping Rhodia to achieve all of its objectives at Widnes.
Not only is IESA making working capital work harder, but the costs
savings achieved through reductions in stock wastage and the more
efficient supply of materials and tools into the maintenance process
have paid for IESA’s services.
For Rhodia, this is the first project of its kind and senior managers
are keeping a close eye on the developments with the possibility
of adopting a similar approach at other manufacturing centres in
the UK and across Europe.
Chris Hobbs, Rhodia’s Industrial Supplies Purchasing Manager
responsible for initiating the Widnes project, is understandably
pleased with IESA’s contribution. He said: “Dealing
with IESA has been extremely refreshing. As a company they have
proved easy to deal with, keen to please and very accommodating
throughout. Most importantly, they have brought new thinking to
the way in which we approach stores management and procurement.”
IESA Chief Executive, Ben Caldwell said: “This project represents
a significant step forwards in the development of IESA. Rhodia could
see that IESA would attack the total cost of supply rather than
just unit costs. As an organisation, Rhodia embraces innovation
and is continually looking forwards - a culture in which IESA thrives.“
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