Inventory Technologies is a company which belongs to a new breed of system integrators, in fact the latter is a term which is abhorred by the Managing Director Ricky Huyser, who prefers to use the term 'solutions provider' to describe their fresh approach to industrial automation. Solutions provider is a much more befitting terminology for a company which provides a capability ranging from state-of-the-art hardware and software right through to training, system support and maintenance. The concept of providing a total enterprise solution has also been enhanced through the recent formation of an IT division which will handle higher level SAP and MES integration. While Inventory Technologies has partnership agreements with the suppliers of software and peripheral equipment (such as Microsoft, Hewlett Packard and Epson), its skills are otherwise totally in-house, minimising the well-known risks associated with using contract staff.
The company, which started operations just some 30 months ago, set somewhat of a precedent by specialising in only a single product supplier, namely Siemens. While this strict focus appeared bizarre to some of the erstwhile competitors of Inventory Technologies, it was a carefully planned strategy for Ricky Huyser. Siemens has close on a 50% market share of the automation business in South Africa, and for a company setting its goals on being 'best of the best', the lions share of half the market is the closest one could come to actual market domination. Of course with Inventory Technologies now handling the Siemens portfolio, the German parent can expect to secure a much larger share of the total local automation market.
The focus of Inventory Technologies on the Siemens product portfolio was also soundly based on the fact that the company wanted to be master of one range and not just familiar with many. With the rapid developments in automation technology it is difficult enough to keep pace with all the activities of Siemens, never mind those of other suppliers. This dedication was further implanted in the company through divisionalisation, separating plant instrumentation from software technologies and information technology from scada and PLCs. Each engineer has his own area of expertise and a team approach allows for the optimum solution to be developed to meet the needs of the customer.
In line with its strategy, Inventory Technologies realised at its start-up that it could not immediately provide 'best of breed' solutions for all sectors of the local industry. Initially it cut its teeth in the mining and food and beverage industries and gradually over time, working mainly through referrals rather than aggressive marketing, was encouraged to expand into the steel industry and then through Sappi, into the pulp and paper industry. With Sappi it is interesting to note that three concurrent projects at three different geographic locations were awarded at the same time, a sure indication of confidence. More recently the first major water projects have been completed, once again the company being specifically requested to respond to a tender. In its two and a half year existence Inventory Technologies has completed more than 100 projects (large and small), this averaging out at 40 per year.
While Siemens has had a well-established track record of providing state-of-the-art automation technology solutions, Inventory Technologies recognised that it had a less than acceptable local reputation in the area of maintenance and service. This was primarily a result of the not unusual policy of other integrators concentrating on selling and putting in new systems, leaving the more mundane task of maintenance to the plant engineers. To assist in restoring customer confidence in ongoing support and back-up, Inventory Technologies created a full service division which today has five dedicated engineers and maintains spares in-country to a value of some R3,5 million. While the initial objective was to provide back-up for their own installations, the service division has effectively created a solid business niche for itself and any Siemens installation will now be supported.
While service typically focuses on repair after breakdown, a catch-phrase of Inventory Technologies is 'Prevent it or solve it!' and high on the list of priorities for the service division of Inventory Technologies is assisting customers with preventative maintenance. Where factory engineers are competent to deal with breakdowns themselves, then rapid supply of critical spares is guaranteed ex Johannesburg. The support provided of course also includes effective advice on possible system upgrade paths.
In addition to the essential service function Inventory Technologies also provides full customer training. Here the emphasis is on the real needs of the customer and the objective is not to make their engineers experts in reprogramming a system but rather to make them better understand how to operate and understand their existing system. The regular courses run are usually industry specific so that for example food and beverage companies can learn from the experiences of other similar operations in this country. Although the courses are structured, the presentation is highly flexible and is geared to the specific issues raised by the attendees. The objective is to impart real practical experience rather than high levels of theoretical and often useless knowledge.
One of the latest major software releases from Siemens is their SIMATIC WinCC (Windows control centre) which provides complete operator control and process monitoring functionality on standard PCs operating under Windows NT. WinCC was one of the first process visualisation systems with 32 bit technology and a unique feature is its ability to pick up on trends and convert them into reality before others did. WinCC is an integrated part of the total SIMATIC automation solution. During the last year there were 53 WinCC installations in South Africa, with Inventory Technologies being responsible for 90% of these, indicating its local leadership in Siemens SIMATIC solutions. Inventory Solutions is also the third largest installer of WinCC outside Europe, a noteworthy achievement for a South African company.
The recognition that Siemens gives to its local associate is evidenced in several ways. The Year 2000 issue of the international WinCC brochure uses several illustrations from local installations, including those at Kynoch Fertiliser and Vaal Reefs. Kynoch has also been used by Siemens as an example of an industry solution in a recent issue of their publication, Process News. The local company is also regularly called upon to carry out 'Beta' model testing for the German parent and its in-house graphics department which produces more than 300 pages per month is rated by Siemens as one of the best in the world.
It is interesting to note that while other automation solution providers are decrying the lack of major projects and their need to move beyond our borders to sustain their profitability, Inventory Technologies is too busy locally to worry too much about overseas business. Justifiably Huyser claims that there is a big demand for automation and once you have proven that you have a record of doing it right (the first time!), you get the business. The company also has a policy of not springing surprises on its customers in an economy where capital funds are tight and right from the start the preferred option is to sit with the client and work out a five year plan of complementary expansion towards the desired ideal solution without the cost and time associated with retrograde steps. This plan of course is flexible and can be implemented in shorter or longer periods dependent on the availability of funding.
Although the company is not actively seeking overseas business, Inventory Technologies has through referrals and association with local customers been requested for help in foreign installations, often because local integrators in those countries were not capable of providing a solution. Countries where Inventory Technologies has been active include France, Canada, India and Finland while it has recently been involved in some installations in Namibia.
Starting with just three engineers, Inventory Technologies today has a staff complement of 52 people, 22 of these being qualified engineers. With the business growing the way it is and with more than R10 million of work in progress, Ricky Huyser would like to expand his staff complement but the standards set by the company are high and skilled manpower is not so readily available. For those that view automation as a challenging career, would like to work with a young dynamic team (the oldest engineer at present is only 30) and are prepared to start at the bottom and work their way up, this could be the right place to be.
The company premises in Johannesburg are currently undergoing a two-phase expansion programme that will see space increase by more than 280 m2. Considering the growth over the last two years, with last year returning a massive 80% increase in turnover, further expansion could soon be on the cards.
Inventory Technologies
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