From the looks of it, you seem to have an interesting strategy for holding and transferring inventory? Can you share some of your inventory related strategies with us?
Thanks for asking this question. Actually, we are proud of having such kind of an interesting strategy for holding and transferring inventory.
Kordsa Global has 9 production facilities spreading to 5 continents and 9 different countries. In order to execute supply chain management in this giant global footprint, we have flexible and agile Global Sales and Operations Planning process, supporting KG company vision and business strategies. And also this process is fed by our values like customer focused, global collaboration, result driven and continuous improvement. As Kordsa Global, we are focused to provide superior services to our customers. With this approach, we are positioning ourselves in global world near our customers. This gives us a power to be back up for them, with the advantage of having transfer options from inventory and production of different Kordsa Global facilities.
At the moment we have a wide range of active product portfolio for more than 150 customers worldwide. In order to increase our responsiveness to our customers, we are using product base inventory management approach. We are applying customer and product segmentation to understand customer behaviors, trends and by using optimization tools we are capable to determine optimum and dynamic inventory levels for each product and keep right amount of inventories for each customer and increase our service level.
At the end, our ultimate aim is to create value in short and long term for our customers.
For global suppliers, there is one risk factor that can simply not be ignored. That is currency risk factor! Fluctuating currencies across countries impact the profit margins. What do you suppose in this regards? How can such challenges be overcome?
Kordsa, as a global company operating in emerging markets, faces the challenge of currency risk. However, since the sales and raw material purchases are denominated in hard currencies like USD and EUR, the exposure to the emerging market currencies are not very high. Kordsa Global implemented FX risk management and has a policy in place to measure and hedge FX exposures in order to manage operating profit margin fluctuations due to FX.
How important is sustainability in modern times? Do you think that sustainable actions have become as important as the production process itself in modern times?
Sustainability has become one of the driving forces of global business strategy. Nearly all industrial companies are forced to take actions on sustainability otherwise their future presence is questioned. Today actions are also diversified in different subjects; you need sustainable production, sustainable sales, sustainable products and innovations.
Consumer awareness drives sustainability in modern times. Do you agree? Please explain your answer.
I agree fully. As mentioned in above paragraph, today companies are forced by their 'mature’ customers for sustainable actions. I used the word 'mature’ here just to differentiate customers with more awareness. Today again we notice that this awareness is growing and tomorrow this will be a major factor on competitiveness.
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