One year after Fluiconnecto by Manuli’s entry into South Africa, Motion Control caught up with national sales manager Colin Hood to see how the company has developed.
MC: Fluiconnecto entered South Africa last year through the acquisition of Powerforce in Witbank and the establishment of a head office in Germiston. How has the company changed since then?
CH: Internationally Fluiconnecto has based its growth on a strong retail and service chain and we have been working to apply that model locally. Manuli found that having its own retail arm, Fluiconnecto, was a better business model than employing only a distributor-reseller distribution model and enabled improved focus on end-users.
Our staff complement has grown to over 50 employees. In October 2008 we opened the doors of our Durban branch and in January 2009 we set up shop in Richards Bay. Of course, we cannot be everywhere and so we have also established relationships with respected agents in other areas to ensure a strong country-wide distribution.
We have also invested in additional stock in parallel with our turnover growth.
MC: What influenced the Richards Bay move?
CH: Fluiconnecto has products that are highly regarded in mining and in marine applications, so Richards Bay was a natural fit for us.
MC: Do you have plans to further expand the branch infrastructure?
CH: Absolutely! We plan to have our own presence in all the major centres within the next four years.
MC: We saw that Fluiconnecto has commissioned several mobile service vehicles worldwide. Are there any plans to do this here in South Africa?
CH: We have adopted the term 'Service Point' in Fluiconnecto, emphasising the reason for our presence and the 24/7 nature of our availability. The group’s experience with mobile service points in other locations has been very positive and we are planning to introduce mobile service vehicles during 2009.
MC: One of the challenges of a larger service point network is the management of stock at different locations. How have you addressed that?
CH: We have a supply chain manager based in Gauteng who is responsible for stock levels at all service points throughout the country. The bulk of our holding is at our central warehouse, which is at our head office in Meadowdale, Germiston.
The supply chain manager is our point of contact with Fluiconnecto in Holland.
MC: Does that mean that you are only able to supply Manuli products?
CH: No. In fact exactly the opposite. Manuli has specific manufacturing expertise, but it cannot manufacture everything. Fluiconnecto aims for a ‘one stop shop’ philosophy, so we also source complementary third party products through Fluiconnecto Head Office. By purchasing these third party products through this route we are assured of the product quality because this is carefully monitored by Manuli’s QC infrastructure. And because Manuli is doing this on an international scale we also benefit from its purchasing power. We view the ability to source these accessories like PTFE hose, thermoplastic hose, steel tube and fittings as an important differentiator in our offering.
MC: SAFPA (The S A Fluid Power Association) places a lot of emphasis on training and education in the fluid power industry. Are you a member and what training initiatives are you involved in?
CH: Yes, Fluiconnecto is a SAFPA member and it promotes training within the industry. We provide training for technicians on the mines and also have a training centre in Meadowdale. We provide general training such as hose manufacture as well as product-specific training and sales training. The training portfolio falls under my jurisdiction and I have a full time training assistant who performs on-site training.
MC: How are you finding the local acceptance of Manuli products?
CH: Manuli has a strong reputation in mining, marine and general industry so we are fortunate in not having to introduce an unknown brand. The Equator range is well suited to high temperature applications like those experienced in underground mining and in tropical regions. The mining industry has also realised the benefits of using a hose with the correct abrasion resistance and flexibility for an application. For applications requiring flexibility and some degree of abrasion resistance the Rockmaster range is a popular choice with miners, while for those applications that require a higher degree of abrasion resistance the Shieldmaster hose has been welcomed.
MC: In 2005 Manuli bought Techmaflex, a manufacturer of hose assembly machinery. Are you doing any business in that area?
CH: Manuli bought Techmaflex because it was a good fit in terms of offering end-users reliable hose assembly equipment. Locally we are trying to standardise on a single type of assembly machine at each service point. This has benefits in terms of training and quality standards.
For our larger clients we have also established our own service points on client sites. We have assembly machines at these locations.
For more information contact Colin Hood, Fluiconnecto by Manuli, +27 (0)11 454 5155, [email protected], www.fluiconnecto.com
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