OI - Warm relationship with supplier

The O-I glass factory in Leerdam produces 3.5 million beer bottles every day. The challenge of keeping production running 24/7 is tackled together with trusted supplier itsme. They ensure that technicians never run out of stock during maintenance and that critical components like cables and sensors are heat-resistant. This makes life much more relaxed for supervisor Patrick Maduro and his team in the electrical engineering department.

The glass factory is part of the American multinational O-I. In Leerdam, mainly brown and green beer bottles are produced—3.5 million every day—using three furnaces and seven production lines. In the “hot end,” the bottles are formed at temperatures over 1,000°C. They are then inspected in the “cold end,” where they are heated again in annealing ovens to prevent them from cooling too quickly and cracking. In short, the electrical engineering department faces more than enough challenges to keep production running smoothly.

Foundation

Patrick Maduro leads the electrical engineering team of over thirty employees. He has been working in Leerdam for twelve years and has only known O-I to work with itsme. “They are our regular supplier for electrical and mechanical components, provide technical advice, deliver training, and create lighting plans.” VMI (vendor managed inventory) is a key foundation of the warm relationship between the two parties. For the past eight years, itsme has managed a VMI 2BIN system for the grab stock of electrical components at O-I. Last year, a VMI for mechanical components was added.

The VMI brings ease of use, Maduro explains. “Everything is managed by itsme. We no longer need to request quotes or place orders for VMI items. Their employee comes by every week to scan the bins and restock them. We don’t have to worry anymore and can focus on our own work. The biggest benefit is that we always have everything in stock—we almost never run out. Our employees even ask if more items can be added to the VMI. I then check if it’s a critical component and used frequently. If so, I usually add it.”

“The biggest benefit is that we always have everything in stock—we almost never run out.”

itsme evaluates the VMI every six months, says Ralph van Aartsen, senior consultant Connected Business. “If items are used frequently and there’s a risk of stockouts, the inventory level needs to be increased. If items are rarely used and linger too long, they are removed. That prevents unnecessary space usage and capital loss. We also look at regular purchase orders. If certain items appear frequently, we may advise including them in the VMI. We stay on top of things at O-I and stay in regular contact.”

The VMI worked so well that O-I decided last year to introduce it for mechanical components too. “That went well, but it took a lot of work,” Maduro reports. “We went through lots of Excel sheets and did many calculations. Once our head of procurement gave the green light, itsme quickly supplied the racks and bins. We then filled the system with our existing stock of relevant items. We now have over 1,800 mechanical items in the VMI, alongside more than 1,000 electrical components. Every week, we add more.” And they’re far from done. “My department has ten storerooms, and four of them now have a VMI—for cables, PLCs, Festo and SKF products, and many other items. I want to add more categories in the future.”

PLC Training and Lighting Plan

itsme’s services go beyond VMI, Maduro continues. “If we have a problem with a specific component, we ask itsme if they can supply a better alternative. They also give us advice on a wide range of topics. Someone from itsme regularly visits to talk with our technical team and answer questions. For example, about PLCs—if Siemens, our preferred brand, introduces a new type, they’ll tell us whether it’s suitable for us. Our staff also attend PLC training courses with them.”

“itsme gives us advice on a wide range of topics.”

itsme Lighting Technology also regularly visits Leerdam, Maduro says. “We switched mostly to LED lighting ten years ago. Recently, we had itsme create a new lighting plan. This time it wasn’t so much about saving energy, but about lighting quality. You want proper lighting in production, and that’s different from office settings. In the ‘hot end,’ for example, lamps must be highly heat-resistant.” Other items like cables and sensors also need to withstand high temperatures in that zone. Van Aartsen: “itsme has product specialists who can advise O-I well. And if we don’t know something ourselves, we involve the product manufacturers.”

Relief

In short, itsme delivers the full package, but for Maduro the VMI stands out most. “It really relieves us, especially with the integration with the warehouse system, so our staff can see on their phones where everything is located. Life for me and my team has become a lot more relaxed.”

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