Shell Chemicals recently held a 'Customer Gathering' in Istanbul for Middle East customers engaged in the manufacture of polyurethane foam, for which the main raw material is polyol. The purpose of the gathering was for Shell chemicals companies to be able to pass on to their customers the latest global news and trends in the polyol business and to listen to customers' needs and demands. Also present were Shell technical support staff from Singapore and Belgium to provide one-to-one support and give advice on new technology. 'Shell in the Middle East' joined the Shell team in Istanbul and met with several customers to find out just how useful this sort of 'gathering' really is...
"This is the second Middle East Polyol Customer Gathering which Shell Chemicals has organised," says Ghassan Ashqar, Commercial Operations Manager for Shell Chemicals in the Middle East, Iran and Pakistan.
"The main reason we hold these gatherings is to show our appreciation to our customers and distributors in the region with whom we have built mutually sustainable business relationships, and it gives us all the opportunity to get to know each other better out of an office environment.
"This type of gathering also emphasises Shell Chemicals' commitment to the region and provides an opportunity for our customers to interact with each other and meet members of Shell Chemicals' technical and business teams.
"We hold these events in a relaxed atmosphere where important business issues can be explained by Shell staff in the form of presentations and open discussions. Customers are provided with opportunities to meet face-to-face with team members to voice concerns and ask questions of Shell technical staff team members who are on hand.
"Over the last few years the growth in the Shell Chemicals' polyol and solvents business in the region has been good, with an increase in sales of more than five times that of the late 1990s. We are now the leader in these markets, but this has not come easily. Considerable investment has been made, in terms of time and effort, to build strong relationships with end-users, customers and distributors, and in terms of staff, bulk storage and blending facilities.
"We offer a strong customer value proposition which includes: a strong commitment to the Middle East and Pakistan region; a robust supply chain with an effective logistics network; consistently high product quality; a focused technical service; and a sincere commitment to HSE [Health, Safety and Environment] and sustainable development issues.
"Our commitment to the provision of technical support for our customers in the region is backed by our two laboratories, in Singapore and Belgium.
"Our supply chain is the most robust in the region, where we have access to bulk storage facilities covering the whole of the Middle East and Pakistan region. Shell Chemicals also has two polyol blending units, one in Jebel Ali in the UAE and the other in Aqaba.
"Products are sourced from Singapore and Holland, which enables us always to have stocks in the region at our various bulk storage locations.
"Further investment in e-business tools, such as the 'Customer Lounge', which is an online web portal where customers can place and track orders, has helped make the process more efficient as well as strengthening customer loyalty. We conduct quarterly customer satisfaction surveys and any issues are resolved with the customers promptly.
"I would like to thank all my staff who are key to the success of our business. In the end it is all about keeping the customer satisfied," he concludes.
"The value of this type of event is that it is purely customer-focused. It allows both Shell, as the supplier, and the customer, as the buyer, to meet and learn more about each others' businesses, the problems they face and how to solve them. In this way we can forge partnerships for the future," says Olivier Thorel, Shell Chemicals Global Business Manager, Polyurethanes.
"As the majority of customers here today are not in direct competition with each other, this meeting allows them to forge cross-border partnerships to grow their businesses. Another advantage for the delegates is that they can meet other manufacturers who may have faced the same problems which they are facing today, so they may be able to go away with solutions to their problems.
"At this gathering we also have Shell technical staff from Belgium and Singapore. These people have been working with some of our customers for many years now and are on hand to provide technical support. This support does not stop once the meeting is over as Shell provides technical support and advice on a regular basis and is always there for our customers. With its global reach Shell has access to a wide range of technical information and solutions which can help our customers here today.
"One of the main issues in the polyurethane foam industry in the last year has been the fluctuation in the price of the key raw material, polyol. During 2004 we saw the price rise from US $1,000 to almost US $2,000 as a result of an increase in the costs of raw materials, tighter supply due to growth in demand and limited new investment in polyol production plants globally.
"In the past suppliers have also been losing money on their sales of polyol which, in any business, is unacceptable. I see the current trend as a readjustment in the market for a fair price for polyol and I am sure that our customers also see this as a reality.
"The way forward is to stabilise pricing and provide more visibility for customers to allow better forward planning.
"Shell is committed to the Middle East and to the polyol business and we have invested heavily in technology and in the provision of technical support for customers. This is a key differentiator between Shell and its competitors.
"Shell has a substantial investment in the region in terms of logistics, HSE and local sales teams to service this market in a sustainable manner.
"The development of long-term relationships is a key element of these gatherings and they show Shell's commitment to help customers grow their businesses and to generate added value for their businesses.
"I look forward to meeting more customers and to solving more of their problems at the next customer gathering," concludes Olivier.
Pranaya Pradhan is Shell Chemicals Laboratory Manager in Singapore. As a member of the Technical Team his job is to provide technical support to Shell's polyol customers in the Middle East and Asia Pacific.
"My presence at this 'Customer Gathering' is to meet the customers and have one-to-one meetings with them so they can put a face to my name and so I can assist them with any technical issues they might have," says Pranaya.
"All of the customers at this gathering use Shell polyols to manufacture polyurethane foam with which to make beds and other items of furniture.
"By sharing the knowledge and experience which Shell has gained from supplying its products to customers all over the world in this industry, we can advise them on ways to improve both their production processes and the quality and cost of their finished products.
"This includes such things as developing improved formulations which can deliver cost savings or high quality end products with better comfort and durability. We can also bring them up to speed with technical trends in the polyurethane foam business.
"It is always good to get together with customers and listen to what they have to say and to explain what services Shell has to offer from the technical perspective which can really help them," concludes Pranaya.
Rabie Sbei, Purchasing and Development Manager at the Abdul Karim Sbei Company, says, "This was a very useful gathering which provided us all with a lot of interesting and valuable technical information.
"The forecasting of material availability and prices, as well as global trends for the levels of production, was very helpful. It was interesting to hear about the direction in which the global players in the chemicals industry are moving and about the new polyol plants being developed.
"We have been buying Shell products for over 20 years and know the team well, but it is always good to meet the team members in a beautiful and relaxed setting. This has been a well-organised gathering with just the right balance between business and social meetings."
Sheikh Abdul Khaleq Saeed, owner of Jeddah Foam says, "This was a good meeting at which Shell customers could get together informally. Having all the major regional polyurethane foam manufacturers in one place has been an excellent opportunity for us to get to know each other better and to do some business.
"The technical and business presentations have been of a high quality and most informative. I have learned a lot which I did not know before which will benefit our business in the future. Indeed, today I have heard about a method which can help us reduce the costs of producing polyurethane foam whilst improving its density.
"We have been buying products and receiving technical support from Shell for many years. However, it is always good to meet the team and get updates on the industry."
Mazen Dakkak, Executive Partner and joint owner of Syria Foam Industries in Syria, says, "This event was up to expectations, was very well organised and most informative.
"I was particularly interested in the presentation by Olivier Thorel which focused on the supply, demand and pricing factors surrounding polyol over the last few years and the long-term trends for the future.
"This sort of industry information is very important for us as it enables manufacturers to plan business growth and to be prepared for the price fluctuations of the market place, whilst giving us the bigger global picture.
"The social side of these events is also essential as it enables supplier and buyer to get to know each other."
Ramadan Shehata, owner of Foam Industries Company in Cairo, says, "This sort of gathering gives both Shell and its customers the chance to discuss issues of importance to both parties.
"Shell staff have also brought us up to date on some of the issues in both the industry, such as the global supply problems, and within Shell, such as the supply of polyol HR which I will now order.
"For me, the update on the Shell Chemicals web portal, or 'Customer Lounge', which we use to place and monitor the progress of our orders, was important as I find this to be a very useful tool in my business with Shell.
"The opportunity to meet the whole Shell Chemicals team has also been good, and the chance to meet other Shell customers and discuss common issues in the business."
Rami Kawar, General Manager of Jordan-based Arab Foam, a member of the Nuqul Group, says, "The whole event was very well-organised. The technical discussions were of a high standard and the information we have gathered will enable us make good savings.
"The presentations were informative and well illustrated. Meeting the other delegates has been a big plus for us. We have had discussions with other Shell customers from Syria, Lebanon, the UAE and Saudi Arabia about future cooperation regarding the supply of raw materials and spring mattresses.
"Meeting the Shell team and getting to know them better has also been good for us, and the Technical Support team has given us some very good advice."
Ali Ahmad, General Manager of Three Stars Foam in Sharjah, UAE, says, "I have gained new knowledge and been able to network with many of the major players in the polyurethane foam business in the region.
"Meeting all members of the Shell team at one time was informative and now I have got to know them all better I feel we will be able to interact more in the future.
"I had a good face-to-face meeting with Pranaya, from the Technical Support team, and I will be able to take the lessons learned from that meeting back to my company and use the new production methods he has suggested to reduce costs.
"I was also introduced to some new formulations which will enable us to produce a better quality foam with a higher density. "So, all in all, it was an excellent event, most worthwhile," he concludes.
© Shell in the Middle East 2005
