Supply Chain Survey: End Users Require Strong Technical Knowledge, Personal Attention and Short Delivery Times

With numerous mergers and acquisitions occurring during the past three years, the editors and Editorial Advisory Board members wondered what affect they were having on the pump supply chain. In April 2013, Pumps & Systems launched a 20-question survey to ask pump suppliers and pump users their thoughts on the state of the pump supply chain. The survey received a positive response rate. About 26 percent of the respondents operate outside the U.S., and of all respondents, 42 percent were end users.

A little more than 60 percent of the survey respondents indicated that the suppliers from which they purchase their pumps have become larger. Of this 60 percent, about 34 percent indicated that this growth had not affected the suppliers’ sales and service performance, about 26 percent stated that the change was positive, and about 40 percent indicated that performance had been negatively affected. Some general trends emerged among the open-ended comments on the survey. Some of the end users needs include:

  • Continued technical expertise of and technical support from the supplier—the distributor or original equipment manufacturer (OEM)
  • Personal interaction between the purchaser/end user and the supplier’s representatives
  • Shorter delivery time requirements for pumps and aftermarket parts

Technical Expertise & Personal Interaction

When asked, “What is the most important consideration when purchasing rotating equipment?” most respondents ranked the knowledge and expertise of the supplier as the primary consideration. Second to that was on-time performance.

End users also want personal contact with the sales/technical staff who represent the supplier. Some respondents indicated that, with the merger activity, this personal interaction has suffered. They stated that they hope the personal touch and technical expertise remain in the pump market. One respondent stated, “With the Internet and large distribution chains entering the pump business, the dynamic has changed and this still needs to play out. The results are varied now.”

The Future

When asked about pump sourcing, 44.5 percent of respondents have direct relationships with OEMs, and 40 percent work with local distributors. Only 15.5 percent have relationships with large or multi-branch distributors.

What are some of the obstacles that suppliers should try to overcome in the future according to respondents of the survey? Below are some obstacles from open-ended comments:

  • Factory lead times
  • Incorporating new changes on old, existing equipment
  • Information availability regarding the different brands and manufacturers
  • Lack of direct pump manufacturer sales
  • Trending toward a single supplier with many good brands under one umbrella

Some comments regarding what the industry should do moving forward are:

  • Conduct more research and improvement.
  • Focus outwardly on user needs and industry decision makers and develop relationships.
  • Concentrate on maintenance and predictive maintenance sensors.
  • Remain flexible in manufacturing and maintain knowledgeable personnel.
  • Continue to focus on lowering the total cost of ownership and heavily promoting that to end users. Many end users focus on initial price, and the industry must continue to educate and promote total cost of ownership as the way to analyze and select the right pump.
  • Continue to provide a service as well as a product.
  • Stock parts in regional areas and continue to support local distributors.