Supplier Side Talk: Sandvik Coromant

The software generates optimized CNC code for smooth implementation of the PrimeTurning method and CoroTurn Prime tools in turning applications.

Sandvik Coromant, which is headquartered in Sandviken, Sweden, has representation and support in more than 150 countries and has nearly 8,000 employees. A new North American headquarters opened last year in Mebane, N.C.; locally, the company’s Canadian headquarters is located in Mississauga, Ont.

Recently, Editor Joe Thompson spoke with General Manager for Canada Magalie Jackson and President, Americas Sean Holt about the company’s direction and how recent times have changed its customers’ buying habits and expectations. Here is part of that conversation.

Thompson: In today’s crowded marketplace, how important is it to have differentiators in the products you sell and in the services you provide?

Holt: I think it's getting harder and harder to differentiate your company just by products. To be honest, whether it's a complete tooling system or whether it's a turning insert or a milling insert, I think that the competitive gap among tooling producers is getting smaller.

However, having said that, we do re-invest twice the industry average back into R&D. So, by far we are industry leaders when it comes to investment in R&D. That’s a differentiator.

When it comes to insert technology, there's only a handful of players in the world that are really able to do true grade and coating technology development, so that's a big differentiator. We have new steel turning grades out right now [grades GC4425 and GC4415] that are twice as productive as old grades, so I think that's a real good way to differentiate.

I also think the other best way to separate yourself, especially when you have a really wide product portfolio [Editor’s note: Sandvik Coromant has 54,000 products in its lineup], is outside of the actual product offering and going down a service/support route.

We want to support the pre-machining, machining, and post-machining processes. When I say pre-machining, it can be anything from operation planning, programming to program verification, and we've made some acquisitions recently in these areas.

Jackson: Adding to what Sean mentioned about assisting the customer, if you look at the online training that we offer, it shows us that our customers do appreciate how we assist them in other ways than just being a tooling supplier.

During COVID-19 we helped customers upskill their workforce so they could hold on to the good people they have and re-train people by offering online training. We didn’t want to talk to them about productivity if their machines were sitting idle, so we tried to help them in other areas.

Sean Holt, President, Americas

Now it's all about making the best purchasing choices again to be more productive and make yourself more competitive in the market. Supporting customers in a total value chain is a great way to differentiate that is not just product by product.

Thompson: Costs are rising, and margins are shrinking because of that. How important is it for Sandvik Coromant to know its customers really well, and how does that relationship between supplier and customer lead to new product development?

Jackson: With our experience in the industry, we are really able to guide customers because we have such long histories with some of them.

Holt: By knowing our customers, we can help them manage their tooling inventory, identify critical items, and provide a consumption analysis. All of this enables them to focus on making parts.

Jackson: I think it's extremely important that manufacturers today don’t have to worry about the logistics aspect of their business and focus on making parts.

Thompson: So, does customer feedback lead directly to tool development?

Holt: One thing we’ve learned from our customers over the years is they want predictability from their tooling. We don’t just look at tool wear, I’ll say that. Everyone wants to be able to run faster, but what’s also important is predictability.

Manufacturers may have one person running five machines. And that means tool wear has to be very predictable while also being productive. We’ve learned that directly from our interactions in the field.

Thompson: In this time of almost-recession, how does brand loyalty help Sandvik Coromant, and do you think brand loyalty still exists when manufacturers are struggling financially?

Holt: I think the loyalty is still there regardless. I think it definitely is. There is a trust you create when you're a strong brand. We also never really took our foot off the gas during COVID. We opened a new headquarters and customer service centre [in Mebane, N.C.] and we really invested in people as well.

Magalie Jackson, Cluster Manager for Canada

Jackson: Once you are a recognized brand and a trusted brand, it definitely helps drive sales. It's like a differentiator, getting back to the to the first question. It's almost like your brand alone can help.

Thompson: Even with a well-recognized brand, there are buyers that are going to make their buying decision based on price alone. How do you attract them?

Holt: Our customers are our biggest brand ambassadors. if you have a customer who proactively promotes the Sandvik Coromant brand; that peer-to-peer marketing is powerful.

The last point on the brand is our people. Our employees really are our brand, and they are the ones who are meeting customers every day. They're the ones who are interacting with customers, so there's a big responsibility there. They are also proud to work for Sandvik Coromant, and they all represent the brand in a very positive and supportive way.

Jackson: Brand loyalty to Sandvik Coromant is based on quality. When you have the right quality product and quality people, you create value.

Holt: Buyers making decision solely on price … I think they're just trying to convince themselves it’s the same product.

Thompson: Sandvik is well-known for its growth by acquisition. What does this business strategy mean for your customers?

Holt: If you look at some of our recent acquisitions, we've made acquisitions in solid round tools, which is our core business, and that will continue. But I think if you look at some of the other ones like CG Tech [acquired in 2020], this adds verification software into our mix, and that fits together very well.

And, while there's still independence at these companies, they really support our entire value chain and drive our core business.

We also think that we can learn a lot from these companies. We can learn more about the entire manufacturing process to make our tools run better. A big part of it is gaining the in-house capability to be able to really look deep into making better tools.

Sandvik Coromant has upgraded its range of turning inserts for machining ISO P steels with two new carbide grades, GC4415 and GC4425, designed for external and internal machining of low-alloyed and unalloyed steels.

It also helps lead to things like Prime Turning, which is more of a complete package as a machining method, tool package, and software.

Jackson: When you now have different companies under the same umbrella, you can break down the silos to create new synergy and new communication between them. This can lead to great breakthroughs at the customer level.

It means it’s no longer about just selling a product but improving a process from end to end.

Thompson: Is our Canadian market unique?

Holt: The Canadian market is different. I think from a customer's perspective and from our perspective, it’s a real technology-driven market.

I would say that, thankfully, we probably have some of the best Sandvik product experts in the world residing in Canada. And I get a similar feeling when I visit our customers here. Most of them are very much technically minded. They are very much into productivity and understand the machining process really, really well.

I think it's important that these companies continue to invest in the best technology and the best people because Canada has a relatively small, diverse manufacturing industry. I mean, it’s small when you look at some other markets like the U.S., but it’s such a big geographic area that it’s a challenge.

One of Magalie’s biggest challenges in the next couple of years is to make sure we reach customers wherever they are, whether it’s directly or through our strong channel partners.

One thing that we notice when focusing on Canada is that the manufacturers here tend to be very advanced when it comes to forecasting. It's a good way to work, because they are making sure that they're going to get the right tool at the right time. They also are working closely with our applications team to bring more knowledge to bear, and they can focus on making parts.

Jackson: For me, the focus is to help build the awareness about Canada.

Right now we are working with multiple different generations that are owning and managing shops in Canada. There is a generation that still wants face-to-face interactions, so we go see them in their shops. Then there is a generation that is very comfortable online and they want to go to our website for information.

As a supplier, it’s on us to deliver a solution for each customer type and fit into their way of working.

Sandvik Coromant, www.sandvik.coromant.com