If the supply chain is properly supported and managed, positive changes in environmental legislation create excellent opportunities for PIR insulation, says Mark Tudor, Commercial Director, EcoTherm® Insulation (UK).
Tighter regulations on energy efficiency in buildings mean increased sales opportunities for insulation products – especially those with good green credentials. Rigid polyisocyanurate (PIR) insulation boards are among the best options on the market, and as a leading manufacturer of PIR boards, EcoTherm® is focusing on improvements that will allow builders’ merchants to share profitably in this growing market.
We have identified six key areas in our business that affect the supply chain through merchants, and we have launched a range of initiatives that have both secured quick fixes and laid the foundations for ongoing betterment. In production, for example, we have a process of continuous improvement, while new partnerships in logistics will hopefully ensure that on time, in full deliveries improve beyond EcoTherm®’s current market leading 99.4%.
Our sales support and technical teams are aiming for commercial excellence and quick responses, while our sales office is focused on providing first class service. And on the marketing front we are pursuing an aggressive new product development programme.
Investment in production
In anticipation of increased demand for insulation, EcoTherm® completed a multi-million pound investment in new machinery for the production of a range of PIR insulation boards. The new facilities came on stream last year and our customers are now seeing the benefits of enhanced quality assurance, greater product consistency, and increased production capacity - now up to 1.5 million square metres of board a year. So while many manufacturers have cut back in the credit crunch, EcoTherm® is continuing to invest in order to maintain the highest levels of service to merchants as demand for PIR insulation board continues to grow.
Logistics partnerships
Our new supply chain partnerships have been put in place to improve deliveries to customers. Our partnership with DHL has seen significant investment leading to a new core fleet of 11 vehicles – raising the bar on delivery performance to new highs.
Sales support
Although price and performance are obviously key priorities when merchants are choosing insulation products, the service and support that a manufacturer can provide are equally critical. We have invested in sales support, taking steps to cement relationships with customers by helping them to develop new business opportunities and create further demand from contractors. And we’ve appointed a new National Sales Manager to drive the process.
Technical initiatives
From talking to our merchant customers we know how important a responsive technical helpline can be in securing an order. Providing product information that’s concise and easy to understand can give branch staff the confidence to sell more effectively and possibly achieve valuable add-on sales. We offer knowledgeable and quick responses to queries or concerns. We can also give on site help or support, and offer CPD seminars and training.
Back office improvements
Our back office processes have been streamlined to facilitate innovation and to ensure that order processing is a seamless operation. Careful customer segmentation enables us to understand what each of our merchants want, so that we can deliver it to them. We are also increasingly proactive in our approach to customer service, using tele-servicing to stay closely in touch.
Marketing new products
Our range will be strengthened further with innovative products which will be launched soon. We place great importance on new product development, which we see as innovating for the future – today! Thermal standards have risen dramatically since PIR was first used as an insulation material and the product has accommodated these changes with minimal effect on application techniques. Recently we launched a rigid thermal insulation board for use with underfloor heating systems. Enhancements are also being made to satisfy increasingly stringent sustainability standards. For example, we have just made our Eco-Deck insulated decking board for flat roofs even more eco-friendly by switching from a plywood facing to highly sustainable Oriented Strand Board (OSB).
EcoTherm® has also invested in a customer relationship management programme which helps us to understand customers better, so that we can align our offering with customers’ expectations. We have also instituted formal business review meetings where performance and opportunities are assessed and identified.
The marketing role will also highlight the importance of effective insulation in the continuing drive towards zero carbon buildings. Keeping the heat in is more environmentally friendly - and cheaper - than burning fossil fuels to maintain comfortable temperatures. Good insulation also increases the attractiveness of systems such as underfloor heating, which are less energy-hungry than radiators, for example, in maintaining a warm interior environment. This is why PIR board is an increasingly popular insulation option for both new and refurbishment projects, offering the highest insulation values from the minimum thickness of material. And PIR is a green material in its own right. No ozone depleting chemicals are produced in the manufacturing process and the energy consumed during manufacture is repaid after only eight months of energy saving in service. Significantly, the manufacture of our PIR boards involves no CFCs or HCFCs so they have zero ozone depletion potential (ODP).
At EcoTherm® we have a very clear view of how to drive our business – it involves investing in ourselves, our products and our service at levels which ensure our merchant partners are in turn fully able to fill a valuable and profitable role in the supply chain