Selecting an Adhesive Converter That Sticks
by Tony Liuzzo
November 1, 2007
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| Photo courtesy of M&C Specialties Co. |
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Not all adhesive converters
are created equal. If they were, it would be easy to choose one. The fact is,
each converter of pressure-sensitive adhesive (PSA) and non-PSA components
offers distinct advantages; some have more expertise in tape slitting, while
others are more proficient in complex die cutting. They may specialize in
certain industries, or supply to dozens of end-use markets. Others are adept at
providing specific products but don’t truly provide “solutions.”
So how do you choose? While each company is different, there are certain
baseline criteria that should always be examined. A converter that is able to
favorably meet these parameters may not be the optimal final choice, but
certainly should be included on your “short list.”
Following are five criteria to consider in selecting a converter. Note that
price is not one of the five. This is not to suggest that price should not be
considered; rather, it is not included as a cautionary measure, lest the reader
be seduced by a low-price option. Low price is a fleeting advantage; if price
were truly a valid differentiator, all a converter would need to do is make its
prices one cent lower than its competitors, and that company would become the
industry leader. It’s not about price — it’s about the value that a converter
can provide. High value and good service are worth paying extra for; low value
and poor service are not.
1. Think Globally
An adhesive converter that
can service its customers globally is a critical consideration. Why? Because a
global company can shepherd its customers from product concept through design,
production and shipping. Often, a company designs a product in one part of the
world and manufactures it in another. The adhesive converter must have the
knowledge and the expertise to acquire the materials from one country and get
them to another quickly and economically. The best converters are “thinking
globally to provide solutions locally.”
As more companies take their manufacturing offshore or begin to incorporate
more multi-site locations, there is a corresponding need for adhesive
converters that can provide both a local sales and manufacturing presence and a
global reach. By integrating all of a company’s locations, the successful
converter can consolidate its customers’ supply chain and help them gain speed
to market.
It should be noted that many customer companies and the converter’s
raw-material suppliers might be global companies themselves. Consequently,
adhesive converters should be global as well, in order to fit comfortably into
the supply chain and act as an effective “link” between the global entities at
each end of the supply chain.
In reality, however, few adhesive converters have the capabilities to adopt a
global approach. A U.S.-based converter, for instance, may not have the
worldwide reach to service the shifting customer base to Asia,
where an increasing volume of automotive components is being manufactured.
Global converters can be found, but the search for them may require some
effort. Our global model at M&C Specialties is one that works quite
effectively: we employ approximately 1,000 people worldwide and serve a variety
of end-user markets from our factories in North America, the European Union,
and Asia.
2. Support of the Whole Process
One of the general business
trends we are seeing is “margin compression” throughout the supply chain. As
profit margins get sliced to the bone, every supplier company must do more than
simply provide a quality product or service. Suppliers should be able to help
customers squeeze every cent of cost efficiency out of their entire supply
chain; adhesive converters should be no exception.
To accomplish this objective, converters must be capable of understanding and
working with all aspects of their customers’ operations — what M&C
Specialties refers to in its own operation as “Total Process Analysis.” They need
to be able to study the product they’re being asked to make and analyze the
flow of that product throughout customers’ total design, manufacturing, and
delivery procedure, not just their own role in the process. In doing so, the
product might turn out to be more expensive to actually manufacture. However,
the total operating cost may be driven down significantly as a result of the
converter’s efforts.
Ultimately, the best converters are attempting to optimize customers’
processes. It’s not just a matter of converting a product: it’s essential to
look downstream at the entire operation and eliminate costs in nine or 10
different areas that other companies wouldn’t even think about.
A corollary to supporting the whole process is being a single-source supplier.
The convenience of being able to use one company for all forms of adhesive
converting is obvious. What’s more, even if you find various companies that can
each fulfill one of your converting requirements, there is still the issue of
certification. Some companies may have the proper certifications necessary;
other may not. Finding one company that has all of the necessary certifications
is far easier.
3. Quality Standards
Providing the right materials
for customers’ applications isn’t enough; they must also be provided at the
quality standards and certification levels customers require. Every industry
has various standards and guidelines that must be observed. Adhesive converters
should be familiar with these standards and prepared to meet them at every step
of the manufacturing and delivery process.
The superior adhesive converter must also be sensitive to the internal quality
needs of the company for whom the product is being created. Many companies have
adopted various quality programs, such as Six Sigma or TQM. Understanding the
unique aspects of whatever quality program the customer is currently embracing
— and being able to work within that framework — should be a non-negotiable
qualification.
Being a single-source supplier is critical. Finding multiple converters that
can all meet the quality standards your company has established can be time
consuming, if not impossible. Plus, by using just one converter, you are
assured that quality procedures are being followed in a consistent fashion the
same way every time.
4. Quality Suppliers
Just as the adhesive
converter strives to be an integral part of a strong supplier network for its
customers, the converter needs a similarly strong network. Converters with
strong supplier networks have access to quality raw materials, as well as their
suppliers’ own technologically advanced processes. But they also have access to
their suppliers’ technical teams, business savvy and even brainstorming
capabilities.
Most adhesive converters can find suppliers capable of providing them with
materials of at least reasonable quality. The converters that deserve serious
consideration, however, are the ones whose suppliers are willing to spend extra
time helping the converters solve their customers’ problems — even problems that
don’t involve the supplier.
When looking for an adhesives converter for your application, ask the converter
what suppliers they use. Then do a little research: find out their
technological capabilities, see how financially stable they are and check out
their client list.
5. The Spirit of Innovation
While this is perhaps the
most obvious criterion, it is by no means the least important. Adhesive
converters are no different than other companies. Some use the latest
technology, the latest equipment, state-of-the-art materials and the most
up-to-date processes. Whether a customer needs tape slitting, die-cutting,
printing or anything in between, some converters have made the commitment —
financial and otherwise — to being on the cutting edge of their industry.
Of course, some have not. Many converters fall somewhere in the middle. They
may be outstanding from a process and materials perspective but they may be
using equipment that is 30 years old. What does that mean to the customer? It
means that your product may be taking longer to produce than necessary. Or it
may not be up to the quality standards you expect. Or it could be costing a
little more to manufacture than it should.
The fact is, a company can be the best adhesive converter in the world from a
logistical perspective, but without good equipment it’s a second-tier player at
best. Ask how old the converter’s equipment is. Find out how often they upgrade
their equipment. See if they’ve introduced new technology to the industry. The
answers will help narrow down your choices.
Also, don’t overlook the “people” angle. Make sure the company you choose has
talented people who are experts in their field — not just in top management,
but at all levels. Try to determine employee turnover; people who have been
employed at one company for a long time tend to be more proficient at their
jobs, which will ultimately be reflected in the work they perform for your
company.
Summary
These
guidelines are not intended to be the last word in selecting an adhesive
converter. Your company may well have its own guidelines that might not be
particularly meaningful to other companies but that are critical to your
decision. But these five are an excellent starting point, intended to weed out
the pretenders from the contenders. After all, when it comes to adhesive
converters, you’ll want one that will stick around for years to come.
For more information on M&C Specialties Co., visit www.mcspecialties.com.
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