Floor level
Hamish McKee describes to Ruari McCallion the ways that Norcros South Africa and its companies are raising standards in ceramic tiles and flooring.
Norcros South Africa has been operational in South Africa for many years. Tile manufacturer JTSA (Johnson Tile South Africa) was originally established in the 1950s. Tile adhesive manufacturer TAL appeared in 1968 as a joint venture; Norcros bought out its partner in 1996 and eight years later acquired Tile Africa Ltd (Taf), its main distributor.  
Norcros now employs just over 1,000 people in the country. Just over half its staff work for TAF, which operates a network of 36 showrooms in South Africa and one in Namibia. Five franchisee organisations operate in South Africa and a further franchise company is established in Mozambique. The stores are focused on ceramic floor tiles, which represent 60 per cent of sales; ancillary products, including adhesives, tools, sanitary ware and bathroom accessories, make up the remainder.
ÔÇ£Norcros is an integrated organisation, but the three companies operate as separate business units,ÔÇØ says Hamish McKee, the companyÔÇÖs sales and marketing executive. ÔÇ£In terms of supply chain issues, we consolidate the three divisions into one, which enables us to achieve better costs in materials, freight and stockholding. The stock issue is particularly important. Lead time for Tile Africa is three months from order to Durban delivery for all imported products. When the order is placed, we make certain sales ratio assumptions. If we can gain an extra month within the cycle, planning becomes more efficient. We can eliminate double handling and redistribution costs if we send supplies from the warehouse to precisely where theyÔÇÖre needed, rather than where we think they may be wanted and then have to rebalance.ÔÇØ
NorcrosÔÇÖs main market is in South Africa, but it also exports to Namibia, Zimbabwe, Botswana, Mozambique and Australia. Johnson Tile (which was formerly known as Pilkington) sells its products to merchants, who retail to builders, both large and small.
ÔÇ£Johnson manufactures both ceramic and porcelain tiles and is the largest manufacturer of tile adhesive in the country,ÔÇØ says McKee. The companyÔÇÖs production capabilities have been built both through organic investment and by acquisition. The strategy has helped Norcros to become one of the leading businesses in its sector in the whole of Southern Africa. Its approach to current economic and market challenges is to focus on controlling costs, strengthening customer focus and developing new products.
ÔÇ£On the tile maintenance side, we are launching an aerosol-based water-repellent grout sealant,ÔÇØ McKee says. ÔÇ£A number of people have paint-on products, but we are strongly behind the aerosol. One of its characteristics is that it helps to retain the colour of the tiles, which tends to change as they are washed.ÔÇØ
The second string to the companyÔÇÖs bow is a newly developed porcelain grout. ÔÇ£This product has a very fine grain to it,ÔÇØ McKee explains. ÔÇ£ItÔÇÖs less viscous, which allows it to be pushed right down to the base, through narrow joints that are typical with porcelain.ÔÇØ
The aerosol product is new to Africa, and the fine-joint grout is a world first, McKee believes. That being the case, the potential for export should be significant. Not entirely, is the answer. ÔÇ£Exporting from South Africa is problematic; freight rates kill it. The potential is probably in licensing.ÔÇØ
Controlling costs is a major priority, and it is being achieved both through technology and improving business practices. Tile manufacture is heavily dependent on energy, and as there is only one gas supplier in South Africa, there is no opportunity to gain cost advantage from competitors. So Norcros looks closely at improving the way it uses the energy available.
ÔÇ£We seek to improve the efficiency of the kiln through increasing quantities,ÔÇØ McKee explains. But how does the company achieve that without compromising qualityÔÇöa feature that is vital for a mid- to high-end producer.
ÔÇ£We can manipulate the firing cycles for tile, and adjust the gas curve to maintain quality,ÔÇØ he continues. ÔÇ£We use higher temperatures to get the same finish in a shorter time.ÔÇØ But higher temperatures require more gas, sometimes disproportionately so. ÔÇ£The key to getting the mix ratio correct is technology. ItÔÇÖs a continuous process, and we look at it daily. ItÔÇÖs a balancing act.ÔÇØ ItÔÇÖs also about where the company positions itself. JohnsonÔÇÖs Tile is the only local manufacturer of porcelain products, and it is quality-led. Response to customer requirements is vital in that market segment.
ÔÇ£We undertake bi-annual market surveys in order to understand customer perspectives of Tile Africa and their attitudes to the brand,ÔÇØ says McKee. ÔÇ£One of the biggest issues mentioned has been customer service, throughout the whole industry. The perceived problem has been a lack of service, and so, three and a half years ago, we introduced a sales floor managers programmeÔÇösomeone to meet and greet at the front door, to ask how they can help and point customers in the right direction.ÔÇØ It has had an impact, judging from the letters of commendation and compliments the company has received. ÔÇ£We have also introduced a hotline for architects and specifiers. We undertake specifications on the line and send an e-mail or fax to follow up. If the specifications we give are followed, then we guarantee the tiles completely. WeÔÇÖve been generating vast amounts of specifications a month with the hotline.ÔÇØ Tile Africa is also working to raise skill levels through a Designate scheme, which identifies promising individuals and trains them intensively for around a year to grow them into management positions in the future. ┬á
Future plans include more ÔÇ£rectificationÔÇØÔÇöfinishing tiles to standard specifications, which will make the fittersÔÇÖ jobs easier. And a new addition to its range is a self-levelling screed, which is ready to accept vinyl and again makes the floor fittersÔÇÖ jobs easier and raises the quality. This product range was launched into a conversion market, and steady progress is being made into the specifications market. Epoxy toppings have also been developed to create a ÔÇ£smooth, polishedÔÇØ finish as a final floor offering, a fashion that is fast taking off in the market. In a competitive business, the companies that make up Norcros are setting the pace.
