Cost

Interviewer: Good afternoon, Paul. We hear a lot about the importance of cost control in the industry. Can you tell us how APG Europe approaches this?

Paul Muller: Good afternoon. Certainly, cost control is a crucial aspect for us. We aim to keep business costs as low as possible through efficient organization and execution of our processes. Our approach includes a one-stop-shopping philosophy, where we cover all operational aspects to ensure the highest quality at a low Total Cost of Ownership. This means we not only look at purchasing costs but also at usage and consumption costs.

Interviewer: How does APG integrate the AQSCI model into its cost strategy?

Paul Muller: The AQSCI model is broad and encompasses various aspects. We focus on optimizing our availability, local warehousing, and an extensive stock. This means we use delivery schedules, call-off contracts, and JIT deliveries, overseeing the entire supply chain.

Interviewer: And regarding operational costs, how does APG manage those?

Paul Muller: Availability is essential in our industry. We maintain stock that is available within 24 hours for our customers. Aligning production needs with suppliers is a complex task and requires meticulous planning. We do this by matching our customer planning with our production capacity, all while keeping operational costs low thanks to our SAP ERP and shared services with Indutrade Benelux.

Interviewer: Does APG also consider the lower total cost of ownership?

Paul Muller: Absolutely. By optimizing our operational costs, we create room for cost savings, which directly benefits our customers. This includes minimizing downtime in production lines and ensuring the availability of the right packaging at the right time. Additionally, our service includes a one-time ordering process and customer-specific warehouse management, allowing us to respond even more efficiently to the individual needs of our customers.

Interviewer: And what about technological integrations like EDI and E-commerce?

Paul Muller: We fully embrace the possibilities of EDI and E-commerce. These technologies provide transparency and efficiency in the ordering and delivery process for us and our customers.

Interviewer: What about change of control costs?

Paul Muller: We implement standardized product management and harmonization in our processes. This means that all changes are introduced in a controlled and coordinated manner to ensure efficiency and cost control.

Interviewer: It seems that APG has mastered these optimization points.

Paul Muller: That's correct, we are continuously improving and innovating. We operate according to Industrial Guidance, GMP systematic approach, and Standard Operating Procedures.

Interviewer: Can you tell us more about your approach to price commitment?

Paul Muller: At APG, we follow an Annual pricing policy, where we use forecast and index pricing. We offer both static and dynamic rebates, and of course, we account for unforeseen circumstances such as Force Majeure.

Interviewer: And finally, does APG engage in strategic pricing?

Paul Muller: Absolutely. We use a transparent activity-based costing model and cross-border enterprise pricing to achieve the best price and conditions for both us and our customers. Our purchasing department is highly effective in capitalizing on these opportunities.

Interviewer: Thank you very much, Paul, for your insights into APG Europe's cost strategies.

Paul Muller: You're welcome. It was a pleasure to share our approach.