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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Entrevista a Francisco Manuel Arce, director de Logística Integral de Ercros

“The possibility to achieve the permission of loads of 44 tonnes would favour the competitiveness of our companies”

Interview to Francisco Manuel Arce, director of Integral Logistics of Ercros

Foundation ICIL10/02/2014

Francisco Manuel Arce, is Technical Engineer Chemist, with a long professional path in the field of the logistics, linked mainly to the company qua now is Ercros. His professional development has allowed him visit diverse positions, like this from 1987 until 1991, went technician of the Department of Production in the factory of Flix of Ercros, for later, of 1991 until 2005, happen to boss of Logistics of the factory of Flix and coordinator of Logistics of Ercros. From 2005 to the actuality is director of Integral Logistics of Ercros, with responsibilities in the negotiation and purchase of raw materials and containers, transports and logistical services, as well as of the Centre of Attention to the Customer.

Interested permanently by the learning, Francisco Manuel Arce has participated in diverse skilled courses of logistics, obtaining the qualification of adviser of hygiene in road and railway industry, achieving for his company the recognition like reference in the application of the program Responsible Care in Spain, of corporate social responsibility by part of the chemical industry.

His interests have carried them to be member of distinct commissions of Feique, Fedequim, Eurochlor, being one of the most stood out members of the sectorial Committee of chemical industry of the ICIL, institution to which belongs from does years, participating like speaker in days and round tables.

Could resumirnos what is Ercros? Which are his main figures, his last milestones...?

Ercros Founds in 1989 by the fusion of S.A. Cros and Explosive River Tinto, S.A. In 2005 produces the purchase of Aragoneses, Industries and Energies, and in 2006 of Forestry Derivatives Group.

In 2012, the staff of Ercos was integrated by 1.618 people and the turnover reached the 678 million euros. The portafolio of the company comprises more than 100 products that manufacture in 14 productive centres situated in Spain. The export supposes 49% of the sales.

Which paper strategic plays the logistics in Ercros? How they realizar this activity in the company?

In Ercros, the logistics depends on the Steering of Integral Logistics, that is the manager of the execution and coordination of this activity in all the company, and of the Departments of Logistics of each productive centre.

The aim of the Steering of Integral Logistics is to achieve the total satisfaction of the customer, in plough to the cual has integrated in his breast all the chain of supply: from the purchase of raw materials and containers, going through the transport and the storage and finishing by the final relation with the customer.

Is responsibility of the Steering of Integral Logistics, between other matters, the negotiation of the transports of commodities, so much by terrestrial road (road and railway industry) as maritime (containers and ships to granel), as well as the contracting of warehouses and port terminals. The cost is a basic factor in the process of selection of the companies of transport and storage but also is fundamental the criterion of sustainability. In this sense is indispensable requirement the availability of certifications of quality, hygiene (SQAS) and of environingingment.

The relation with the customers carries out from the Centre of Attention to the Customer, that is the manager to collect and transact the requests, and attend the applications of technical assistance or claims of the customers.

Finally, the Departments of Logistics of the factories are the attendants to manage the day in day out, what comports to assign and communicate to the companies of transport the services that have to realizar and ensure the reception of the procurements of the factories.

“The increase of the activity, does not go through to be protectionist, but efficient and competitive”

The development and the implantation of an integral logistics have to suppose some important challenges of management for the organisation, is not like this?

The main challenge that has surpassed the Steering of Integral Logistics of Ercros was as a result of the acquisitions of Aragoneses, Industries and Energies and of Forestry Derivatives, in 2005 and 2006 respectively, that did precise to unify the different organisations and methods of work of the two industrial groups purchased with the ones of Ercros. The implication of all the organisation to achieve it was absolute and this allowed in a brief term have of an alone integrated system.

In the actuality, the difficulty arises by the strong volatility of the demand, so much in volume as in destination, what forces to be very agile in the logistical organisation and of production and to have of the suitable means to attend, usually with little timeframe, to the distinct markets and serving the volumes required that in our case are very important.

The permanent challenge that poses in the current situation, is to achieve the maximum efficiency, deleting errors and improving the costs, without sacrificing the quality and the hygiene of the distribution. To this respecto, in collaboration with the distinct associations of the sector, are very interested in the increase of the maximum weight authorised until the 44 tonnes. There are a lot of restrictions and limitations in this activity that repercuten of negative way in the costs, and a lot of costs that is not possible to control by part of the company (diesel for example). The possibility to achieve the permission of loads of 44 tonnes would favour the competitiveness of our companies, so much in the inner market as in our exports. In these moments, in France (and in other countries) already are accepted for the national transport, by what ours exports to this country, are in clear disadvantage with the local producers. Undoubtedly we comprise and we assume that it has to realizar of an orderly way and coordinated with the sector of transport, and under the premise that it was an appearance that redunde in the profit of both parts. What is clear, is that the increase of the activity, does not go through to be protectionist, but efficient and competitive.

Finally, is fundamental to adapt to the legislative changes and to the numerous existent rule in the transport and external trade. To this respecto indicate the obtaining by part of Ercros of the statute of Economic Operator Authorised in 2011, being one of the first chemical companies Spaniards in obtaining it.

Could indicate us some current logistical projects or of immediate future?

Of here to final of year, the main project, from the point of view of the cost, is the launching and adjudication of the tend of transport by sea of containers. Ercros Moves some 7.500 containers every year, between import and export. Already it does several years that take the decision to manage directly this activity and the economic result and of service has been very positive.

Of face to the next year, have like aim the calculation of the footprint of carbon generated by our distribution, to improve our environingingmental efficiency. East a project that wanted to tackle from does a time but went postponing by the intrinsic difficulties that comports and the complication added that supposes the disparity of ratios available of broadcasts.

The development of a more efficient transport medioambientalmente is an aim from does several years of Ercros. In the last exercise, 8% of our commodities have been transported by ffcc or intermodal, 25% by transport by sea, that are values that are very above the average of the sector.

Also want to follow improving the hygiene in the distribution of our products, something that is of vital importance given the cataloging of many of them like dangerous. To minimise the risks associated to the transport, have carried out an important effort thanks to the cual only have suffered five incidents along the three last years in which they have movilizado almost 8 million tonnes of products. In any of them have produced personal injuries or important environingingmental damages.

Find the human resources that need in logistics when they look for them?

The politics of Ercros in matter of contracting recommends, whenever it was possible, cover with personnel of the own staff the vacant places, by means of the promotion of the people. In punctual moments, in that it has done necessary attend to the market, have done the processes of pertinent selection without that we have had problem to find the suitable people.

How it sees the immediate future of the professional exercise in the logistics? Which challenges will have to face the logistical professionals?

The professional of the logistical has to be a flexible person, that can adapt with ease to the situations cambiantes of the market, and that have the quality to foresee the movements that can produce to be in the best disposal to anticipate . These characteristics still go to be more important in the immediate future. To be very ready is fundamental the learning, the experience and the knowledge of all the actors that take part in this sector.

Also is important to have a good knowledge and manufacturing in front of the legislative changes that are producing in the transport and in the trade in Europe, with the implantation of new requirements like the new review of the Law of Ordination of the Terrestrial Transport, the euroviñeta, the maximum weights authorised, the European regulation Reach, etc.

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