Copper: Luvata switches metals procurement strategy to one team
By Tom Stundza -- Purchasing, 11/15/2007
Global copper products manufacturer Luvata of Finland has consolidated metals procurement under a team led by Bob Kickham, senior vice president for procurement, who is based in London. His new purchasing organization will source high-quality cathode that will be processed by the company's four divisions—rolled products; coils for heating, ventilating and air conditioning products; special products; and ACR (air conditioning and refrigeration) tubes.
Formerly known as Outokumpu Copper Products and purchased in 2005 by Nordic Capital, the company used to source copper at each of the firm's 30 production plants—including Luvata Buffalo in upstate New York. Kickham says that buying system won't work in a changing global market.
"Understandably, customers' expectations are always increasing and Luvata needs to achieve greater efficiencies to meet and exceed these expectations," Kickham said in a company statement. "Our unique position as a global fabricator means that a single sourcing team can use the company's scale as a base to achieve this in a way that smaller players can not. We need the commitment of key suppliers and we will be working with them closer than ever."
Luvata management says in a statement that the procurement consolidation move is key to the future prosperity of both the organization and the wider supply chain. To ensure the future health of the copper industry in general and negate the threat of substitution, Luvata claims that a tighter supply chain and an even deeper, more strategic relationship with both its key customer base and suppliers are essential.
Kickham says he is keen to building strong supply base foundations. "Luvata has always been committed to partnering with its customers to help them increase their competitiveness," he says. "Consolidation of the sourcing team further helps achieve this through even stronger customer support. Partnering with suppliers means Luvata will be able to access supply of raw materials where and when the need is greatest so that it can supply its customers with the flexibility they require."
Kickham joined Luvata as CPO in 2005. Key members of his new consolidated procurement team are Rauli Stenfors, director of metals for Europe and Asia; Jeffery Burghardt, director of metals for North America and emerging markets, and Ian Scarlett, metals manager for Europe and Asia, with responsibility for trader relationships globally. Previously, Kickham was CPO at multinational beer, wine and spirits company Diageo.

















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