actuation supplying actuators – a complex sale

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actuator contract is the end user.With a plant to build, targets to meet and a need to be satisfied on points of performance and maintenance, this influencer’s needs include technical product information, data outlining cost of ownership and clari- fication regarding ease of maintenance. Second, the actuator supplier needs to identify and address the requirements of any consultants involved in the purchasing process.Working outside of the client or- ganisation, consultants are generally em- ployed to design the plant and are looking for products that are fit-for-purpose that meet the client’s specification. The third party in the equation for the ac- tuator supplier are contractors whose pri- mary role is building the plant.Value for money and an ability to meet delivery re- quirements are frequently the main con- cerns for contracted organisations. And that directories of valve users such as water treatment works and power plants would be all that is needed to target po- tential customers. Unfortunately this is not the case. Essentially there are four par- ties within the valve user organisation that may be involved in the actuator buying de- cision and, more often than not, all groups need to be provided with the salient facts to satisfy their purchasing requirements. The first of the four parties involved in the “Unlike a retail product targeted at the consumer market, it is impossible to cre- ate demand for actuation technology. If there is a valve application requiring the front end intelligence that actuators pro- vide there will be a role for the products but, if there are no valves on site, actua- tion solutions will have no part to play. It may be considered that this highly specific market would make the supplier’s job eas- ier – you could be forgiven for thinking www.valve-world.net DECEMBER 2006 Valve World 33 Supplying actuators – a complex sale ACTUATION Supplying actuators – a complex sale Ian Sully, AUMA UK Managing Director In this article for Valve World, Ian Sully, UK Managing Director for AUMA, which forms part of the global AUMA organisation, explains that anyone working in the actuation market needs to be fully attuned to the fact that this is a complex technical sale. The supplier needs to cover all bases at every stage, including the process of specifying products and tendering for the contract. 00_auma 24-11-2006 15:11 Pagina 33

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actuator contract is the end user.With aplant to build, targets to meet and a needto be satisfied on points of performanceand maintenance, this influencer’s needsinclude technical product information,data outlining cost of ownership and clari-fication regarding ease of maintenance.Second, the actuator supplier needs toidentify and address the requirements ofany consultants involved in the purchasingprocess.Working outside of the client or-ganisation, consultants are generally em-ployed to design the plant and are lookingfor products that are fit-for-purpose thatmeet the client’s specification.

The third party in the equation for the ac-tuator supplier are contractors whose pri-mary role is building the plant.Value formoney and an ability to meet delivery re-quirements are frequently the main con-cerns for contracted organisations.And

that directories of valve users such aswater treatment works and power plantswould be all that is needed to target po-tential customers. Unfortunately this isnot the case. Essentially there are four par-ties within the valve user organisation thatmay be involved in the actuator buying de-cision and, more often than not, all groupsneed to be provided with the salient factsto satisfy their purchasing requirements.

The first of the four parties involved in the

“Unlike a retail product targeted at theconsumer market, it is impossible to cre-ate demand for actuation technology. Ifthere is a valve application requiring thefront end intelligence that actuators pro-vide there will be a role for the productsbut, if there are no valves on site, actua-tion solutions will have no part to play. Itmay be considered that this highly specificmarket would make the supplier’s job eas-ier – you could be forgiven for thinking

www.valve-world.net DECEMBER 2006 Valve��World 33

Supplying actuators – a complex sale

ACTUATION

Supplying actuators – a complex sale

Ian Sully, AUMA UK Managing Director

In this article for Valve World, Ian Sully, UK Managing Directorfor AUMA, which forms part of the global AUMA organisation,explains that anyone working in the actuation market needs tobe fully attuned to the fact that this is a complex technical sale.The supplier needs to cover all bases at every stage, includingthe process of specifying products and tendering for thecontract.

00_auma 24-11-2006 15:11 Pagina 33

last, but by no means least, there is thevalve supplier or vendor who again looksfor value for money and speed of delivery.In addition, this contact in the network ofparties playing a part in the purchasingprocess will address practical aspects ofthe technology. Factors taken into consid-eration include ease of mounting, productcompatibility with other systems and per-formance criteria met when testing theactuator with the valve.

As mentioned in the introduction to thisreport, the actuator sale is complicated.The supplier has to be mindful of theneeds of all interested parties and allplates need to be kept spinning through-out the process. Naturally cost is a key in-fluencing factor in the buying decisionand, increasingly, eyes turn to the bottomline when making the final choice of sup-plier. However, it is important to highlightthat the ultimate decision to purchaseshould not be made on the order pricealone. Maintenance requirements need tobe accounted for along with supplier’sflexibility, an ability to respond to shortterm delivery requirements, reliabilityand support.A key question to be posedto the actuator supplier is the true natureof the service provided – the companymay claim to be a global organisation ableto offer local service but do they reallyhave a technical representative perma-nently based in your region?

Another important point to address iswhat the actuator manufacturer means byfit-and-forget.A product that needs to beremoved from site for an upgrade doesnot accurately meet this brief. It is alsoimportant to establish that the suppliercompany offers the full portfolio of actua-tion solutions from both a mechanical andelectronic perspective as this will ensurethat both immediate and future needs ofthe site will be met. However, under-standing the supplier should go a numberof stages further than reviewing the prod-uct portfolio. It is essential to understandthe services, facilities and philosophy ofthe company as this provides the founda-tion for a long-term partnership relation-ship. For example, what investment andfacilities are devoted to R&D and can thecompany support new generation digitalcontrol technology.

Additionally, against the backdrop of theconsiderations required of the actuatorsupplier, we need to overlay the specificsof the tendering process.Traditionally, thekey selection criteria were technicalmerit, cost-effectiveness and the ability todeliver on time.While these factors arestill central to the buying process, therehas been a move over the last ten years toframework contracts where the tenderingprocess is conducted in advance of anysupply orders being placed.

In general, the tender process for frame-work agreements can last up to sixmonths. During this period, the supplierneeds to prove to the purchaser that prod-ucts of an appropriate quality can be sup-plied at the right price.Additionally, thecustomer’s technical requirements need tobe met and the supplier has to demon-

strate that his company has the capacity toundertake the purchaser’s contract. Meet-ing framework agreement criteria is acomplex and lengthy procedure but therewards are high as the successful compa-ny is given a guarantee that their productswill be supplied over a pre-determinedtime period, generally three to five years.

Selling actuators cannot be compared to aretail sale – this is not a lifestyle purchase,we can’t persuade users of a need. Howev-er, once contracts are secured and rela-tionships are established, rewarding part-nership relationships evolve where thetwo organisations work alongside eachother to meet the long term goal of im-proved plant or works performance.

No-one will ever impulse buy an actuatorbut, if there are ticks in the product,price, performance and shared philosophyboxes, then the actuator supplier and pur-chasing company are likely to forge linksthat last for many years.”

www.valve-world.net34 Valve��World DECEMBER 2006

ACTUATION

Auma rig operation

Supplying actuators worldwide

ABOUT THE AUTHOR

Ian Sully has headed AUMA’s UK operation since1995. As AUMA UK Managing Director he is re-sponsible for the company’s administration, sup-port and supply departments. Ian Sully takes anactive role in the sales process and has been instru-mental in securing a number of prestigious frame-work agreements. AUMA UK works as part of aninternational network of AUMA companies pro-viding global support for the company’s range ofmodular electric actuators.

00_auma 24-11-2006 15:11 Pagina 34