Business operations

Global Supply Chain

“Partnership with our suppliers is becoming increasingly important as they provide us with innovative solutions in our product offering as well as flexibility in our supply chain.

They are crucial in realizing Marel's long-term growth strategy. For the coming years we foresee even closer cooperation with our key suppliers.

Paul van Warmerdam, Head of Global Supply Chain

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Manufacturing

In 2013 Marel continued to make good progress with the implementation of the Marel Manufacturing System (MMS) across all our manufacturing sites. On all sites, we have completed projects and started new initiatives to support the continuous effort to refine both the effectiveness and efficiency of our processes.

These projects comprise all areas, such as people, processes, capital investments in production equipment, and development and optimization of production technology. “The cooperation in the global community continues to create energy and present new opportunities, and the success stories that have been reported from different corners of the world confirm our belief in one shared vision,” says Paul.

Marel's focus on cellular manufacturing has led to the successful implementation of a number of production cells within our manufacturing environment. These cells have resulted in a significant reduction of lead times and increases in productivity. “In 2014 we will continue our efforts and apply what we have learned,” says Paul. 

“In parallel we continued to further improve the triangle of innovation, procurement and manufacturing. This will remain an important focus area in the coming period, as this is essential to continuously reduce time to market of our innovations, and bringing cost-effective solutions to the market,” says Paul.

MAREL'S GROWTH DRIVERS

Megacities - World's Ten Largest Extended Cities in 2025

Urban AgglomerationCountryPopulation (millions)
Tokyo Japan 38.7
Delhi India 32.9
Shanghai China 28.4
Mumbai (Bombay) India 26.6
Ciudad de México (Mexico City) Mexico 24.6
New York-Newark United States 23.6
São Paulo Brazil 23.2
Dhaka Bangladesh 22.9
Beijing China 22.6
Karachi Pakistan 20.2

Source: United Nations

Procurement

In Marel's Global Procurement program, an aligned cost management approach has been introduced across the Marel procurement function to secure alignment and better control our costs and working capital. These initiatives lead to improved bottom-line results, and better control of working capital.

Marel has enabled close cooperation with selected suppliers and has developed processes and a toolkit to define the right strategy and supply base that fit its innovation and service strategy. This ensures that Marel benefits from suppliers' innovations for improved technologies.

In 2013 Marel started to see the benefits of its Supplier Relationship Management (SRM) process and toolkit. Within this process Marel continuously works towards strengthening its relationships with global and local suppliers, with the goal of creating value through long-term partnerships.

THE MAREL WAY OF LIFE

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The Marel Blues Project

Marel has its own Blues Band, the Marel Blues Project, which consists of Marel employees and special guests

Every year Marel's headquarters in Gardabaer are for one night transformed into a Blues Club when the band goes on stage and performs outstanding blues. In January 2014 the Blues night was held for the 7th time and the event was broadcast live to Marel employees around the world. The broadcast was sent out to more countries than the famous Eurovision Song contest.

Partnership

“Marel has valued its partnership with customers for a long time. Partnership with our suppliers is becoming increasingly important as they provide us with innovative solutions in our product offering as well as flexibility in our supply chain. They are crucial in realizing Marel's long-term growth strategy, and we foresee even closer cooperation with our key suppliers in the coming years,” says Paul.


Operational Excellence

Marel's strategic focal points – improved customer service, improved data integrity, and modularization of products – call for operational excellence practices to enhance performance and make it possible to realize strategic goals. In 2013, Marel continued promoting operational excellence in several parts of the organization, resulting in increased activity in the operating units. 

Mariette Ferrari, Corporate Director of Finance: “Continuous analysis of the total value stream and creating transparency in the cash conversion cycle, has led to identified improvement potential in many parts of the company. In 2013 the global initiative to implement a credit management and collection tool was finalized and resulted in a continuous lower level of Days Sales Outstanding, the main Key Performance Indicator measuring improvement of customer receivables. We are also proud of the new demonstration and training center Progress Point in Copenhagen, which will enable a streamlined demonstration process supporting the sales function, with controlled investment in working capital.”

The modularization program and working capital/business process improvement program progressed well in defining actions to make the cash conversion cycle shorter. It is commonly accepted that this helps the organization in many ways; such as by minimizing time-to-market in innovation, or shortening the processes of delivering products and services to customers.

“By promoting operational excellence we encourage our people to become problem solvers, so that as many employees as possible are improving processes as part of their daily work and are identifying further improvement potential while doing so. The result should be that Marel will do more with less; i.e. increase throughput with minimal capital investments, with resulting positive effects on our profit margins. We use operational excellence to free up time, energy, and space for our valuable employees to create breakthrough products, penetrate new markets, and fulfil the needs of our existing and future customers,” says Mariette.

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Corporate Director of Finance

Mariette Ferrari

“By promoting operational excellence we encourage our people to become problem solvers, so that as many employees as possible are improving processes as part of their daily work and are identifying further improvement potential while doing so.”