Zuidberg Supply Chain

The outbreak of COVID-19 and the war in Ukraine thereafter have also posed major challenges for Zuidberg. These events accelerated the establishment of the Supply Chain Department within the company. Liesbeth Sijpersma is the manager of that department, which has recently become operational. "Crises like these very clearly expose the challenges we have to deal with.”

“You can see business operations as a river full of stones”, says Liesbeth Sijpersma, Supply Chain Manager at Zuidberg. “Usually, you can just navigate around those stones without any difficulty. Sometimes, you have to make some adjustments, but you can make steady progress. However, in drastic situations, such as the coronavirus outbreak and certainly during the war in Ukraine, the water level is suddenly low and all the stones are exposed. Sailing around them is no longer an option; you must clear those obstacles to move forward.”

Panic on the steel market
Zuidberg has suddenly had to deal with one of those unavoidable obstacles: the material supply problem. Liesbeth: “We are a manufacturing company. We buy a lot of steel, and we depend on it. All the measures surrounding the coronavirus outbreak had significant consequences. Lockdowns meant that deliveries could not be made, companies were forced to close down, and iron ore extraction fell sharply, leading to a shortage of steel. The war in Ukraine came on top of this. There are several large steel factories in that country, including the one in Mariupol, which was destroyed in the first bombing. That caused worldwide panic in the steel market. Prices rose by hundreds of per cent.”

Stocking up on extra supplies
Zuidberg reacted decisively. Sijpersma: “We immediately freed up half a million euros to build up extra steel stock. This was possible because Zuidberg still functions as a family business despite its enormous growth. The decision to invest was made within five minutes, and barely a day later, it had already been arranged. The good relationship we have with our suppliers was also a contributing factor.”

Dual sourcing and local suppliers
To spread the delivery risk, Zuidberg has been working with multiple suppliers for some time. Sijpersma: “Due to the current situation, we are further expanding this dual sourcing. We are handling this very carefully. We have deliberately chosen suppliers from the immediate surroundings of our business location in Ens or from Western Europe. That makes communication more straightforward, and we can visit them quickly if the situation so requires. That has great added value.”

A good mutual relationship is essential, emphasises Sijpersma. “The suppliers are good to us, and we make sure we are good to them. For example, we always pay within thirty days. We also consciously outsource part of our production to our suppliers so that we can fall back on them if necessary. Because of this strong bond, they are willing to help us, even in difficult times, as is the case now.”

Increasing the pace of investment
With the expansion of the steel stock levels, Zuidberg also increased the pace of investment in its machinery. Sijpersma: “We already had an investment plan, but the current situation has brought everything forward. This is no time to take it easy. Everyone faces challenges in terms of deliveries, including us, but we want to remain one of the best. We all have to face situations beyond our control. The key is finding a good solution.”