By Davies Hood, President of Induron Protective Coatings
I’ve always had a soft spot for the underdog. Maybe that’s part of the reason I’ve been such a strong believer in Guild CPO for so many years.
For those who aren’t familiar with Guild CPO, it is an international purchasing cooperative created to give independent coatings manufacturers greater purchasing power while allowing them to maintain their independence. Today, the organization includes more than 100 paint and coatings manufacturers across more than 25 countries.
Recently, European Coatings published an article featuring a conversation with three Guild CPO leaders: Armodios Yannidis, Chairman of Guild CPO’s EMEA organization and CEO of Vitex in Greece; Ramon Farres, Guild CPO’s EMEA Director; and Dan Kerr, the organization’s Executive Director. Their conversation was a great reminder of what makes Guild CPO different, and why I continue to believe so strongly in its mission.
The Guild’s tagline is simple: “Cooperation is a Powerful Tool.” I think that says a lot.
Independent Companies, Working Together
As independent coatings manufacturers, companies like Induron don’t have the purchasing volume or resources of the industry’s largest multinational companies.
But that doesn’t mean we have to operate alone.
Guild CPO gives owners, procurement professionals, technical leaders and other industry professionals a place to collaborate and share information. By working together, members can create some of the advantages of scale enjoyed by much larger competitors while still maintaining their individual identities, businesses and supplier relationships.
And that last part is important.
Guild CPO isn’t about telling members how to run their businesses. Participation in supplier programs is voluntary, and members maintain control over their individual relationships and technical decisions.
Instead, the organization creates opportunities for members to share knowledge, compare information, identify potential risks and work together when challenges arise.
That can be incredibly valuable in an industry where raw-material pricing, availability and supply-chain disruptions can change quickly.
Purchasing Power Is Only Part of the Story
When people hear “purchasing cooperative,” it’s easy to assume the primary benefit is simply getting a better price. Price certainly matters. But, in my experience, that’s only one piece of the value Guild CPO provides.
The organization also brings together information from its members and suppliers, helping companies better understand what is happening across the raw-material market. That collective visibility can help members identify potential supply issues and evaluate alternative sources before a problem becomes a crisis. And sometimes the most valuable resource is another member.
The European Coatings article describes examples of Guild members helping one another during shortages by shipping or reallocating raw materials, supporting one another through manufacturing challenges, and sharing technical information.
That kind of cooperation is difficult to put a dollar value on. It is also something that I think is particularly meaningful for family-owned and independent businesses.
A Network of People Who Understand the Business
One of my favorite things about Guild CPO is that the relationships extend well beyond purchasing. There are communities within the organization for purchasing professionals and technical leaders, as well as opportunities for CEOs and owners to connect. Members host facility tours, share experiences and build relationships with people who understand the unique challenges of running a coatings manufacturing business.
That matters.
Running a business can sometimes feel like a very individual endeavor. You make the decisions, solve the problems and deal with whatever challenge shows up next.
Being part of a network of people who have been through many of the same things gives you the opportunity to ask a question, hear another perspective or simply talk to someone who understands.
I think that is one of Guild CPO’s greatest strengths.
Looking Forward to Cleveland
This week, I’ll have the opportunity to experience that community again when I travel to Cleveland, Ohio, for Guild CPO’s Annual Conference. I’m proud to serve as a member of the organization’s Board of Directors, and I’m looking forward to spending time with fellow members from across the coatings industry.
For me, serving on the Board is about more than being involved with a purchasing organization. It’s an opportunity to contribute to an organization that believes independent companies can accomplish more when they work together.
I’m proud that Induron is part of that effort.
The coatings industry has never been short on challenges. Raw-material volatility, supply availability, changing regulations, logistics and countless other factors can make it difficult for independent manufacturers to compete and plan for the future.
But we don’t have to face those challenges in isolation. That’s what I appreciate most about Guild CPO.
We may be independent companies, but we don’t have to be independent of one another. And in an industry where cooperation can make a real difference, I’m proud to be part of a group that continues to prove that cooperation really is a powerful tool.