The use of aluminium has increased dramatically this year. Major construction is taking place all over Europe, and the production of electric cars, among other things, has also increased the demand for aluminium.<\/p>\n
\u201cAt M\u00e4kel\u00e4 Alu, this means that production is running at full capacity, and we have had to rethink our budget,\u201d says Production Director Tero Suomalainen<\/strong>.<\/p>\n \u201cThe increase in demand started at the end of last year and peaked in March. Since then, demand has increased by 15 to 20 per cent, and the outlook is similar for the coming months,\u201d says Sales Director Mika Korkea-aho<\/strong>.<\/p>\n The limited availability of raw materials and components has affected the entire global market. Nonetheless, M\u00e4kel\u00e4 Alu has been able to secure its customer deliveries, even though the procurement of paints has been exceptionally challenging.<\/p>\n \u201cThere have only been some minor delays, which can be counted in days,\u201d says Korkea-aho.<\/p>\n \u00a0<\/p>\n The limited availability of aluminium has been a common concern in Europe, but not for M\u00e4kel\u00e4 Alu.<\/p>\n \u201cOur raw material procurement is based on long-term agreements with three raw material suppliers. The agreements ensure that we always receive aluminium as planned,\u201d says Sourcing Manager Ari Kyt\u00f6l\u00e4<\/strong>.<\/p>\n Raw material could also be purchased through so-called spot trading.<\/p>\n \u201cIn some situations, spot trading may be a cheaper option than annual purchase agreements. But once the spot market is cleared, the availability of aluminium depends entirely on whether suppliers have any raw material left. This has caused major problems for many operators in the sector. This problem does not exist with an annual agreement. While it may tie up more capital, the benefits of long-term agreements and partnerships become clear in these types of situations,\u201d says Kyt\u00f6l\u00e4.<\/p>\n \u00a0<\/p>\n Most of M\u00e4kel\u00e4 Alu’s customer relationships are based on partnerships and long-term capacity reservation contracts.<\/p>\n Our capacity is planned using capacity reservation contracts. The remaining capacity is used for handling non-contractual orders.<\/p>\n \u201cIn the current market situation, it would be all the more important for customers to have a capacity reservation contract. It allows us to ensure fast deliveries. We have less capacity for handling non-contractual orders, which is why delivery times may be extended,\u201d says Terhi Rajala<\/strong>, who is responsible for M\u00e4kel\u00e4 Alu’s order-to-delivery processes.<\/p>\n \u00a0<\/strong><\/p>\n Mika Korkea-aho and Terhi Rajala encourage customers to negotiate a capacity reservation contract with M\u00e4kel\u00e4 Alu\u2019s sales team.<\/p>\n \u201cIf a customer experiences significant fluctuations in demand, it is important to think about the underlying reasons. Together with the customers, we have been able to find ways to level out demand, for example by changing ordering practices,\u201d says Rajala.<\/p>\n Demand is therefore one of the things that should be considered together with the sales team.<\/p>\n Customers should also make use of M\u00e4kel\u00e4 Alu\u2019s online ordering services. Using the AluInterface service or M\u00e4kel\u00e4 Alu\u2019s electronic order template<\/a> will speed up and simplify the processing of your order.<\/p>\n \u00a0<\/p>\n While M\u00e4kel\u00e4 Alu has been able to complete most of its deliveries on time, the company has faced some challenges due to the limited availability of paints.<\/p>\n \u201cThe phenomenon behind it has also taken paint suppliers by surprise: they have had difficulty obtaining their own raw materials, such as dyes and binders, which mainly come from Asia. There is currently huge demand for the raw materials for powder coatings and, at the same time, there has been a shortage of containers and container vessels in Asian imports. As a result, container shipping costs have increased tenfold in a year,\u201d says Ari Kyt\u00f6l\u00e4.\u00a0<\/p>\n \u201cAt the turn of the year, our biggest supplier announced that they would face availability problems in the spring. We were thankful that they informed us in good time, as it gave us time to prepare. We were able to agree on purchases with other paint suppliers.<\/p>\n At worst, all suppliers experienced difficulties with deliveries, but not usually at the same time.\u201d<\/p>\n \u00a0<\/p>\n The limited availability of paints has led to additional work and some minor delays in deliveries. We have also had to change suppliers in some orders. In some cases, we have had to discuss possible colour changes with customers.<\/p>\n A quick response and smooth cooperation between the purchasing department, the order and delivery department, and the production and sales units have played a key role in solving these problems.<\/p>\n Korkea-aho applauds the efforts of the purchasing department, which has handled paint changes smoothly. Rajala adds that the IT department has also been very helpful in developing tools for checking product availability for customer orders.<\/p>\n \u201cPaint changes have brought new challenges to order processing, and the purchasing and IT departments\u2019 support has been crucial in these situations,\u201d says Rajala.<\/p>\n \u00a0<\/p>\nM\u00e4kel\u00e4 Alu was not affected by aluminium shortages<\/strong><\/h3>\n
A capacity reservation contract helps secure deliveries<\/strong><\/h3>\n
Capacity reservation contracts are planned according to the customers\u2019 needs <\/strong><\/h3>\n
Availability problems took paint suppliers by surprise <\/strong><\/h3>\n
A quick response is vital<\/strong><\/h3>\n
Capacity reservation contract in a nutshell <\/strong><\/h3>\n
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