The Global Supply Chain organization at Marel is responsible for manufacturing and procurement within the company. The function creates a solid foundation for increased efficiency, the sharing of best practices and optimization of the use of resources throughout the company.
The Simply, Smarter, Faster program had a significant impact on Marel’s global manufacturing footprint in 2015. The program instigated a radical optimization of Marel’s manufacturing facilities, which were reduced from 19 locations in 2014 to 11 by the end of 2015, including the MPS manufacturing locations.
Some of the changes were executed in order to support the optimization of Marel’s solution portfolio, while other manufacturing functions were transferred to existing facilities as part of the consolidation of the company’s manufacturing platform into a few multi-industry sites.
Innovation is and has always been the heart of the Marel organization. Marel’s primary goal is to deliver market-driven innovation that changes the way food is processed and helps businesses to create and maintain value in a sustainable way. Marel’s annual investment of approximately 7% of revenue in research and development is noticeably higher than the market average and has led to breakthrough innovations that have completely transformed the way food is processed.
As part of becoming Simpler, Smarter, Faster the innovation function has been working hard to define ways to improve how innovation is organized within Marel.
Projects and milestones the company achieved in 2015 include strengthening the innovation processes for new product development with the rollout of a global stage gate process, implementing a bidding process with the sales organization, and defining Marel’s future technical platform in close cooperation with the supply chain team.
The company has also completed successful innovation projects elsewhere in the organization focusing on better understanding the total cost of bringing value to Marel’s customers.
Many milestones have been reached during this journey that will make innovation stronger at Marel. Overall financial results have improved and investment in innovation is secured and seen as an important enabler for further growth.
Innovative technology and solutions were introduced in all industries during 2015 including the LegPositioner and the ACM-NT cut-up shackle in Marel Poultry, the MS1710 Salmon Skinner and the MS2730 filleting machine in Marel Fish and development of the DeboFlex pork deboning system in Marel Meat.
At the end of 2015, there were 3,873 full-time employees at Marel. There were approximately 3,600 employees with long-term contracts, compared with approximately 3,800 at the beginning of the year. After the acquisition of MPS in January 2016 employees of Marel are 4.600.
Three-quarters of employees is located in the Netherlands, Iceland, Denmark and the U.K. The majority of Marel’s employees are located in Europe.
To manage fluctuations in demand, Marel uses temporary manufacturing resources, of which there were 272 resources at year end, compared with 214 at the beginning of the year, reflecting the increased business activity.
We are living in rapidly changing times. Important decisions have to be made quickly and to make the right decisions, our customers need the right information at the right time.
Marel is providing world class processing solutions and Innova Food Processing Software brings it all together. The Innova team wants to help its customers to get the most out of their investment and their production. To make the right decisions, production managers need reliable data presented visually and that is where Innova plays an important role.
Traceability is at the forefront of food safety
Consumers are increasingly demanding traceability when it comes to food origins, and governments are responding by introducing new regulations. Innova Food Processing Software helps meet these challenges by ensuring full traceability throughout the process. Innova’s slogan is “Control, Monitor, and Improve.” Innova allows food producers to control their production, monitor how that production is going and make the right decisions to improve the process.
Food processors are demanding more from Marel; they want the company to be an innovative system provider. The company’s solutions, which combine hardware and software, are unique in the market and allows Marel to help its customers to reach the next level. A big part of this is to continue building a strong setup around Innova to support its customers better. Regional teams take the company closer to its customers, facilitating continuous improvement and faster response times.
Marel offers fantastic solutions and a large installed base. In the coming years, Marel will build a stronger focus on current customers and offer them additional Innova modules to help ensure they stay ahead in a competitive environment.
Innova Food Processing Software enable you to maximize yield and throughput, conform to quality standards and ensure food safety. Einhamar Seafood uses Innova to plan their production so yield is maximized while avoiding waste. Having a real-time overview of the production is crucial when dealing with a large number of customers with specialized orders. This real-time with Innova is a true testimony to what Innovation, Unity and Excellence means to Marel.
As part of the Simpler, Smarter, Faster program, Marel set a target of becoming best in class service organization for its customers, employees and shareholders by improving overall performance by being a globally-aligned organization through processes, service offerings, management practices and infrastructure. In 2015, the company achieved some major milestones on this journey.
With the program coming to an end, global services will now be focus on reaching its full potential. By fully aligning and refocusing the service organization and processes – from installation throughout all service activities and customer care initiatives – global services see added value by improving utilization of the global service network for our customers. Service models are also being developed further to meet the customers’ needs in the most efficient way and expanding the breadth of service offerings with clear focus on growing the service and maintenance contract portfolio. The goal is to serve customers better while continuously improving overall customer experience and business results.
In 2015, a new global service delivery model was designed and launched with the goal of meeting customer needs in a more efficient and simpler way by utilizing the company’s extensive service network more effectively. To reach full potential with this model, Marel has deployed a new field service management system called ServiceMax.
With ServiceMax, Marel has improved its visibility in the installed based and mobilized all its field service engineers, giving them more information about the jobs they are assigned to as well as capturing additional field information faster and more reliably. This is a big enabler for Marel’s service strategy, giving a complete transparency into the installed base and the workforce meeting objectives for the customers, especially the workforce in the field, who are delivering service to Marel’s customers every day.
Service and preventive maintenance contracts are Marel’s key service products.
In 2015, global services redefined service offerings to better meet the customer needs to reach maximum uptime and performance levels. More effort was put into service innovation to further develop the service and maintenance to ensure consistency across all industries, technology and regions. With a new modular model simpler contracting process and spare parts management is expected to meet the contractual commitments. It’s important to work closely with the customers and continuously improve their performances with active preventive maintenance programs. It mitigates surprises for both sides and maintenance costs are more predictable.
In 2015, Marel refocused and clarified reporting lines to better support the company’s service objectives. The regions have been strengthened, with a strong focus on the first level support and field service operations close to the customer. Regional Service Managers now oversee additional regional teams to enable further utilization of resources and know how, across borders and across industries. Marel’s industry and product teams in Europe are now more focused on enabling growth and efficiency in the company’s service organization, supporting its regional teams.
Marel has approximately 1000 service representatives in its service network and it’s important to leverage their extensive know how in an optimal way across the entire company. This is an ongoing process, and new tools and transparency are constantly giving new insights for further development. Unity is a value we embrace in service. To foster excellence for our customers, global services have established new roles to facilitate a more proactive approach and the customers are seeing the improvement.