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'Simplicity leads to power' at INEOS.
In this newsletter VSL's Leo van Overeem talks about the new challenge of VSL SiloLogistics at INEOS in Lillo. But now the client's perspective. How does Supply Chain Manager Philippe Neirynck of INEOS feel about the change of LSP on the INEOS-premises at Scheldelaan in the Antwerp port area?
'In order to understand the choice for VSL SiloLogistics, it is necessary to understand the self-willed company INEOS and its self-willed owner Jim Ratcliffe a little. We are a no-nonsense company applying simple principles, particularly focused on cost control and profitability. We have very quickly grown into one of the mayor chemistry chains of the world. And yet, a small head office in some converted cowsheds in the English countryside suffices. Every business unit operates as an independent company and unnecessary expenses are kept to a strict minimum everywhere. It is in the interest of all, because employees are either co-owner of the company or have in any event the possibility of becoming a co-owner. Eventually, we all benefit if things go well and we all share the pain in situations of adversity. Our culture ensures that everything is negotiable, small and large measures.'
The arrival of VSL SiloLogistics as the successor to our previous LSP is an example of a large measure. Philippe Neirynck: 'Our marriage to our previous LSP has existed ever since the start in Lillo in 1992. At the time, it was a logical choice. Full outsourcing of all physical logistics operations fitted into our strategy and our previous LSP was the specialist in the neighbourhood. And they have always done a good job, reason for which we did not see much point in looking any further. But the economic crisis opened our eyes. First of all, we wanted an answer to the question as to whether it might be interesting to investigate the present LSP Market further. That appeared to be the case, so we issued an invitation to tender. Obviously, we invited our previous LSP, but VSL SiloLogistics too.'
'I think it was typical of INEOS to eventually opt for the smaller VSL. It was the more thrilling, more risky choice of the entrepreneur. It would have been much easier just to continue with the old familiar partner. But there was so much difference in what was offered, even if the cost of change to be taken into account were to be included. Not only the costing details, but also the professionalism, the flexible possibilities, the drive of the people. it made us curious about everything this partnership could contribute. Our marriage to our previous LSP was solid, but the big difference between it and a real marriage is that we have to earn our living with our work. So, put emotions to one side and look only at what suits us best.'
The ink from the five-year contract between INEOS and VSL has barely dried, but the first formal evaluation has already taken place at the beginning of November, slightly more than a month after the start. 'We consider the VSL people as colleagues. Physically, we are in one place and we obviously work together all the time. Nevertheless, additional coordination with regard to progress is vital, especially in the initial phase, in which so many things change for people with different backgrounds. Mutual queries or problems regarding subjects like safety, attitude to service and the output of work must be dealt with at once, so that we can continue rapidly but, above all, better. That is the approach we go for at INEOS!'
December 2009