The complete package
“To explain the success of Air Products’ Packaged Gas business, one has to look back” explains the General Manager: Packaged Gas, Josua le Roux. He explains that the first delivery of cylinders was made from Kempton Park as long ago as 1969. At that stage, Air Products had been established to supply gas to the former Iscor at Vanderbijlpark.
Over the years, the Packaged Gas business has grown and now is available in all the major urban centres in South Africa. Josua joined Air Products on November 1, 1997 as a Speciality Gas Sales Engineer. Since then, he has worked in various areas of Air Products, and was appointed GM of Packaged Gas in January 2005.
At that stage, Packaged Gas was making a relatively minor contribution to Air Products overall revenue. However, under his leadership, the business now accounts for a significant amount of revenue and profit.
“In the past decade, the turnover of Packaged Gas has increased significantly,” he explains.
The question is what are the factors that have prompted this strong growth?
In February 2002, Air Products in the US completed its divesture of its Packaged Gas Business in the Northern United States of America. This was a significant occurrence which could have affected South Africa as well.
“However, it didn’t,” explains Josua. At the time, some ten years ago, the then GM of Packaged Gas, Mike Hellyar, re-focused the Packaged Gas business, and developed a number of sound strategic initiatives. Building on these, in the past three years, the business has experienced double-digit growth year-on-year.
The drivers for this growth are underpinned by having a clear vision and focus, explains Josua.
“You have to know where you want to be and how you are going to get there,” he explains.
While Air Products is not the largest player in South Africa’s gas industry, the company wants to be the leader in certain selected markets. This has given the company a ‘niche’ approach in, for example, the welding sector and the food and beverage market. Technologies such as Air Products exceptionally efficient Small Liquid Delivery (SLD) system and its ability to provide extra safety and convenience in the form of Minitanks and Maxitanks have attracted a growing number of customers.
A further part of Packaged Gas success is in its uncompromising approach to safety, an aspect which provides customers confidence when dealing with Air Products. Reinforcing this drive, the combination of an unflagging commitment to quality, and a dedication to customers and their best interests, has seen Packaged Gas going to successively higher levels of success.
There is also an understanding in Air Products that what served an industry well in the past, may not be an adequate solution today.
“Our personalised service is underpinned with a constant search for innovation to assist our customers,” explains Josua.
This means that Air Products is constantly in touch with the markets it serves. The company is close enough to its market to understand its requirements. At the same time, this allows the business to build close relationships with its customers.
“Our success is built on the long-lasting relationships that our sales people have developed, and continue to develop, with their customers,” he continues.
To add impetus to this thinking, the company has added additional resources into its Customer Service area. This is a combination of people and technology. The people are focused on the Packaged Gas Distributors, as well as direct customers. Known as Customer Service Specialists, they are mandated to assist customers in the most appropriate way possible.
Air Products has also optimized its ordering systems so that the process of procuring gas is a smooth and error-free process. Daily supply chain meetings evaluate the product and customers priorities and this information is then in turn shared in open feedback to customers.
Air Products Packaged Gas business is committed to ensuring the right products is available at the right time. This has taken considerable internal planning and the use of the company’s understanding of the market coupled with its strategy to ensure that the products are available through out the supply chain.
“Our business is specialised, from production, to cylinders and even the trucks that are used in making deliveries, these are not off-the-shelf solutions,” adds Josua.
In addition, Packaged Gas has launched a number of new products, such as its Freshline™ range of Modified Atmospheric Packaging (MAP) gases. Within the food and beverage industry, items such as the Beverage Dispensing Systems (BDS) have shown exceptional growth
The key industry sectors where Packaged Gas has seen good growth, are in its industrial part of the business. The market for cutting and welding is one of the sectors that have grown rapidly. The drive for automation in markets such as the laser cutting industry has been served by Air Products innovations such as its TelAlert™ on-site monitoring systems.
Air Products does much more than simply deliver gas. The company is very knowledgeable about the application of its gases. Whether it is welding, laser cutting or the preservation of foodstuffs, the Packaged Gas has individuals who are experts in their fields and are delighted to share this expertise to solve customer problems. If the solution is not available in South Africa, the local operation can call on the expertise of Air Products worldwide.
A contributing factor to the success of Packaged Gas is its Distributor network. These strategically-placed outlets are carefully selected by Air Products and have to adhere to a strict code of safety and quality standards as well as business ethics.
“Our distributors are the final link in the chain that brings our premium product to our customers,” says Josua.
It is the quality in each link of this chain that enables Packaged Gas to provide a product that adds real value to our customers’ businesses,” he concludes.
Published on October 31, 2008 in Product News |