Quality assurance
June 1st 2005

With some remarkably low prices being touted by budget import companies, heads will understandably turn at even the most wary firms. But you get what you pay for, says LINPAC Storage Systems sales & marketing director, Tim Judge. Brendan Coyne reports

The uncertainty of the steel market caused a lot of companies problems last year – many unable to guarantee prices from month to month. But according to LINPAC Storage Systems sales & marketing director Tim Judge, it actually brought the company closer to its customers.

“I don’t think we’ve seen that kind of volatility in living memory,” he says.“There were quite a number of instances where we had to go back and re-quote because the price hikes were happening so quickly.

But I think we managed it well in terms of our customers' - and our own bottom lines.” Judge says the key was simply to communicate the problem to the customer “extremely early and extremely loud” to ensure surprises were minimal. “And they were quite understanding because you can’t argue with the truth: it was absolutely the case across the board. But by sitting down with the customer and keeping them informed it actually brought us closer to the customer in some instances – because we were all in the same situation.” While nothing is set in stone, steel prices seem to have levelled out. But it’s still a tough commercial climate – and according to Judge the situation isn’t helped by the flood of cheap European imports hitting the market. Like many companies competing with Eastern Block imports, LINPAC is refusing to be drawn into a price war and Judge says the battle must be fought on a different plane: “We talk about the level of service and quality that we can offer; the fact that you can come to Milton Keynes and actually talk to the people who are going to handle your project; you can go into the factory and practically taste the kit you’re buying. I think this raises what we’re doing to a different level – and it’s something a lot of the import companies clearly can’t do. We don’t just take an order and disappear back to Serbia.” Although a minority will always go for lowest price, Judge thinks most progressive businesses won’t be willing to gamble on their future. “If you’re making a large capital purchase you want to be absolutely certain – because it could cost you your job and the company its financial credibility.” However, with some of the low prices being touted, Judge understands heads will turn even at some of the larger companies when bottom lines are under pressure. “But I think value for money is far more important. You don’t just go out and by the cheapest car – you buy the one that suits your needs. So why should that mindset change when it comes to industry? Admittedly if the market was to buy purely on price, we would really struggle. But it is very rare that someone’s buying criteria is so one dimensional.” Although some UK racking companies will suffer the effects of import-driven competition, Judge believes the financial stability afforded by the LINPAC Group protects it to a large degree – and enables product investment. For example, the “We’ve just invested almost £1 million in a new racking beam line: quite a significant amount when the world and his wife seems to be taking British manufacturing to China” company has just spent close to £1million on a new beam line to improve its pallet racking. “Quite a significant amount when the world and his wife seems to be taking British manufacturing to China,” he says.

“And I think it’s a measure of the commitment that LINPAC is making to the UK market.” In fact, the company actually aims to buck the trend, seeking to increase the amount of product it exports to Europe.

According to Judge, LINPAC’s next step will be to partner with a quality European firm to achieve this.

In the UK, alongside pallet racking, Judge says there’s high demand for its shelving systems. “Our roots are very firmly in pallet racking and we’re less well known for our shelving – but customers are realising what it can do for inventory levels and consolidating stock.” According to Judge, the benefit of being part of the group is that each business focuses on what it does best, collaboratively reducing supply chains. “For example: alongside storage we have LINPAC Materials Handling making containers; a company that can handle RFID and; a unit that undertakes asset management – and we think it’s a unique offering.” But that’s not to say the company is content its offering cannot be enhanced. So while according to Judge, LINPAC is happy to be a “Strong number two” that’s a good thing: “Because we’re not on everybody’s shopping list and have to try that bit harder, which in turn means we always having to improve our offering.” It also means there’s more business to be won over.

More articles from Linpac Storage Systems Limited: