14th February 2020

Flexibility and geographical location bring cost savings for buyers of cold-rolled profiles

gruvindustri mining industry kaivosteollisuus

Procons began its cooperation with Sandvik’s Tampere unit in 2016 and delivers special roll-formed profiles to them. The order list includes, for example, runners and wear strips in various lengths and models.


Whenever Procons starts a new subcontracting job with Sandvik’s Tampere unit, the same protocol is observed. The buyer and subcontractor meet to go through the quality criteria and the operations models set for subcontractors to ensure that quality assurance is performed correctly. After that the subcontractor delivers the prototypes to Sandvik. Sandvik requires mutual transparency, also on pricing, from the subcontracting relationship. One key factor for transparency is the fact that the proportion of materials and work is itemised in the prices.


“We use subcontractors from Finland and abroad. When choosing them, our most important criteria are quality, delivery reliability and cost. Procons has met these criteria.  An additional advantage is their flexibility, which brings us cost-benefits,” says Category Manager at Sandvik’s Tampere factory, Teemu Mäkeläinen, who oversees steel purchases for surface drill rigs.


Cost-benefits from flexibility


Procons’ flexibility brings many kinds of benefits for the buyer. Cost savings come from deliveries that are not tied to predetermined quantities. Even with regular orders, it has been possible to make changes to delivery schedules and quantities when needed. In addition to Tampere, Procons delivers products directly to Eindhoven, Sandvik’s central warehouse for spare parts in Europe. The consequent reduced need for storage is a direct cost saving that also makes the buyer’s operations easier.


“We don’t need an enormous stock when the deliveries can be made this flexibly. We know Procons has items for our current products in store, and we can order them even at short notice. Procons has provided us with excellent service in all situations,” Mäkeläinen says.


Procons’ geographical location reduces transport costs


Being Finnish is not a defining factor in the choice of a subcontracting partner, even if the global competition between subcontractors is tough. Mäkeläinen values the whole service system where the different elements combine to create an effective package.


“When the required criteria are met and the two companies’ working cultures are aligned, the cooperation benefits them both. We are extremely happy with Procons’ operations and will broaden our cooperation with them this winter. We have exchanged our European supplier for Procons and will start this collaboration in February.”


 (Photo: Ranger DX900i surface top hammer drill / Sandvik)

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