Battling through the wintry conditions, cooler innovation Editor Hannah Oakman took a trip to Poland to visit OASIS Europe’s operations near Gliwice.
One of the best known global water cooler companies, OASIS now finds itself at the heart of Europe, having moved its entire manufacturing operations to Poland at the end of 2005. The move, OASIS say, has been perfect from a distribution point of view, helping to make processes cost effective across the board.
I had been warned that temperatures last year in Poland shrank to a toe numbing minus 34ºC during January, so began the trip with some trepidation. And sure enough, as the plane landed we encountered our first flakes, with the snow falling and settling for the rest of the trip. But unlike more temperate places such as the UK, where a few snow flurries can cause chaos on the roads and rails, Poland is much better equipped for the cold weather, and we were soon away to the nearby town of Gliwice, a lively industrial town in the South, with a population of around 200,000.
A founding member of the European Bottled Watercooler Association (EBWA), OASIS first arrived in Gliwice in January 2001, to set up shop in a new European economic investment zone on the outskirts of town, engineered by the Polish Government to bring business to the area. In fact, OASIS was the first multinational company to arrive on site, only to be faced with a muddy site and a few lonely, structural beams. But following several months of incredibly hard graft, the plant was up and running.
Around six years later, many others have joined suit in the area, including Japanese spark plug manufacturers, and a Lidl distribution centre, to take advantage of such a central European location.
The Polish plant, at 6,000 square metres, is a good deal smaller than OASIS’ Monterrey, Mexico manufacturing plant. But there is room for expansion and with current potential capacity of more than 1,000 units per day, the plant is now operating effectively and efficiently across the range of coolers, dehumidifiers and other products. The local workforce is highly educated and trained, many coming from an excellent technical training college in Gliwice. Plans are already underway to set up production lines for new models in 2007.
The decision to move all manufacturing to Poland in 2005 (prior to which some still took place at OASIS’ Ballina plant) was based on a real need to face reality and become more competitive, an issue which ALL water cooler manufacturers face at some point or another. OASIS, along with its new American owners Tri Palm International, realised it had to become more price competitive and more aggressive in the market place, in order to effectively compete with cheaper imports from other parts of the world.
A visit to the Gliwice operation reveals a hard working yet relaxed culture. The offices are brightly decorated and the staff wander by in jeans and casual clothes, but there is a definite busy buzz in the air. Summer 2006, as for many in the water cooler industry, proved a busy time for the Polish manufacturing base, who worked flat out to process orders coming in from all over Europe. As a reward for all the hard work, General Manager European Operations Jarek Kaczmarek took all the staff away for a weekend in the mountains for leadership and relaxation, so there is an emphasis on team bonding and reward as well as hard work.
A tour around the manufacturing plant floor shows a well-ordered operation, with a range of machines producing models on site. OASIS does use a variety of subcontractors to provide parts, sourcing as many components globally as possible. One exception is the main reservoir in contact with water, which is manufactured on site to ensure structural integrity and the strictest hygiene standards. There is also a backstage testing lab for samples and comparing components from subcontractors.
While the plant’s current production stands at around 10% point of use (POU) to 90% bottled water coolers, there are plans within the next two years to increase the proportion of POU water coolers to around 20%, in order to meet customer demand in the market place.
cooler innovation interview
Hannah Oakman spoke to European Regional Sales and Marketing Manager Willie McCaskill about the OASIS masterplan.
How is the OASIS brand now faring in the market place?
“We believe now we have cut some costs that we are able to transfer better prices onto the customer. We’ve not increased margins and become fat cats but we have made the decision that we will try and eliminate waste and have streamlined a lot of our operations.
“The launch of the Milano this year, starting at £54.99 in the UK, will probably be the best value European manufactured cooler in the market place. Our whole range has reduced in terms of price over the last few years, in order to compete with aggressive import pricing.
“If you look back a few years, I would say the entire industry was taking almost an irresponsible approach to costs, with some manufacturers offering one or two year’s credit to customers. But today, there is no doubt that everyone is requesting much more regular payment, which means we all operate within a much healthier system. From a distributor’s point of view he buys product when he can afford it and everyone is happier.”
You don’t believe you have lost anything by transferring all production out of Columbus, Ohio and Ballina, Ireland?
“Not at all. It’s something that we knew was going to have to happen, like all manufacturers. Let’s be honest, manufacturing in the western half of Europe is really under pressure, especially in the UK, Ireland, Germany, France and so on. The one exception is probably food manufacturing or other similar products with a short shelf life. But with commodity products, we will inevitably see more manufacturing moving to low cost production areas.
“We are also in an industry where, whether people like it or not, when the sun shines it is like flicking on the power switch – and no one can give us a 100% accurate weather forecast! So it’s cost effective to be in Poland where we can produce and supply products rapidly and to order throughout Europe.”
There is now a heavy emphasis on environmental issues within the water cooler industry. How important is this for OASIS?
”Environmental issues are extremely important to OASIS. Our innovations in this regard reflect a series of industry firsts. We were the first to switch to environmentally friendly refrigerants. We were the first to use polycarbonate plastic for cabinets. Polycarbonate has an extremely long life due to its composition and is easy to recycle over and over again. We also developed the leading cooler refrigeration system in Europe with the removable reservoir cooler. This water way platform makes cooler sanitisation simple and eliminates the need to continuously dispose of plastic bags on an ongoing basis. We now offer the removable reservoir system in a wide variety of cabinet styles and prices.”
“Environmental conformity is a big deal and recycling is certainly a key issue when we are developing machines. For example, we have already developed a product with R600 gas, which is the same gas you find in cigarette lighters. It’s much more environmentally friendly. As yet, there is no demand to use it but it will ultimately replace R134 in the compressor so we are already planning for this”.
“If we did not really consider environmental issues, then of course we could manufacture more cheaply. Legislation such as the Waste Electric and Electronic Equipment Directive and R600 all have big cost implications. But it is paramount we conform and most blue chip companies now have environmental procurement policies which effect their purchasing decisions when it comes to choosing a water cooler.”
Where do you see major growth areas for the European business?
“We are confident of continued growth across both our bottled water range and POU, especially with the 2007 launch of the Kalix.”
“Pressure coolers also remain a big growth area for us, particularly the wall mounted P8ACY model which offers disabled access and a modern design.”
“This cooler operates with light pressure applied to three push pads. Water flow continues as long as pressure on a pad is maintained. The cabinet has a smooth front underside without sharp corners or exposed fastenings and delivers 30 litres per hour of chilled drinking water. We are now starting to see strong growth in the UK for this model in schools, hospitals and other institutions.”
How do you prefer to work with distributors?
We work with a wide range of companies from large to small, and we look after them all to the same degree. We like to see most of our distributors at least twice a year and for our sales managers to be personally in touch. We are always available.”
“The water cooler market has become very mature in many regions now and we do service a lot of big contracts, which enables us to produce bespoke models for distributors if demanded.”
“In terms of how we like our products to be placed with distributors, I think the days of telling distributors which models we would prefer them to take are long gone!”
Are you looking at new sales initiatives with distributors?
“Yes – in conjunction with our distributors we are launching a staff promotion for 2007. The basic idea is we will offer vouchers for every Kalix sold by each member of the sales team, whether direct or indirect sales.”
“POU reselling is similar to retail – we are up against competition in the market place with various other suppliers and distributors offering a range of products. Therefore it is important for us to encourage the sales teams to use our models as the product of choice. If this is successful, it is something we will develop on an ongoing basis.” have already developed a product with R600 gas, which is the same gas you find in cigarette lighters. It’s much more environmentally friendly. As yet, there is no demand to use it but it will ultimately replace R134 in the compressor so we are already planning for this”.
OASIS today
Globally:
In Europe:
Key developments:
*Product launches 2007 *
The Milano – March
A new entry level product, available as bottled and POU model which will replace the Aquarius. It has a stainless steel fixed reservoir, polyethylene cabinet, with a large drip tray. It is set to be an aggressively priced product for all markets including Europe, Asia and Africa.
New stainless steel unit – March
A higher end, stainless steel model, available as bottled and POU. Oasis see strong growth in this market and is aiming for it to be the most competitively priced stainless steel product available.
The Kalix – April
OASIS believes the Kalix (right) is its most attractive POU to date. It features injection moulded panels and metal frame, push button dispensers with lighted buttons; a removable drip tray; enough room for coffee carafe and sports bottle under taps; and built in cup dispenser on top. A pressure vessel direct chill cooling system is used. The official launch at the April AVEX show in London, with giveaways to some of Oasis’ major customers. Future variations will include Hot and Cold, Reverse Osmosis (Eastern Europe, Asia), High Output, and Carbonated, which is in high demand in Germany, Austria, and Switzerland among other places.
New POU countertop model – September
Aimed at the residential market, as well as the commercial sector.
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