"There are no textbook cases to help us make our decisions" - Denis Rousseau (Eurosit)

Every month, OVRSEA meets its shipper customers to discuss the latest freight and logistics news and future challenges. This week, we meet Denis Rousseau.

Every month, OVRSEA meets with its shipper clients to discuss the latest freight and logistics news and the challenges ahead. Denis Rousseau, head of purchasing at Eurosit, talks about how the extreme level of uncertainty disrupts his day-to-day management of logistics and transport.

Hello Denis, could you introduce yourself?

After a career in the automobile sector, notably at Valéo, I have been the purchasing manager for Eurosit for the last 4 years. Based in Nevers, Eurosit is a French manufacturer of office chairs which is part of the Sokoa group, based in Hendaye, which has a total of 600 employees. The group is the French leader in the sector. At Eurosit, we work in B2B with many large accounts, such as SNCF, EDF, developers, major banks, SAFRAN, insurance companies and Renault, but also state agencies.

What are the company's characteristics in terms of transport and logistics?

Our production site is located in Nevers and we import our components mainly from Europe, and to a lesser extent from China. Our main modes of transport from Asia are sea and rail, although the latter is no longer on the agenda because of the war in Ukraine. But until now, we have been able to benefit from the advantages of rail, in particular thanks to the reactivity and expertise of OVRSEA.

How did you cope with the health crisis from 2020?

We reacted at the end of 2019 by quickly building up 6 months of stock, compared with 3 months previously, which enabled us to maintain production and get through the Covid crisis, the blockage of the Suez Canal and other port closures or congestion over the past two years. In view of the current disruption, shortages of components and the high level of geopolitical instability, we have just taken the decision to increase our stock to 8 months.

Do you plan to further relocate the production of your components?

It is clear that we want to reduce our dependence on Asia as much as possible. For the few simple technical parts that are co-produced with our local partners, it is fairly easy to repatriate production to Europe, and that is what we are doing. On the other hand, for certain components, where we have to admit that certain technologies are almost exclusively Asian, whether for financial reasons or because of production capacity, it will be difficult to do without Chinese production in the short and medium term.

The overall level of uncertainty remains extremely high. How do you anticipate the near and distant future?

It has become very difficult to make plans for the months ahead. In 2020 and 2021, we managed one-off crises on very specific components, but with the crisis in Ukraine and the Covid in China, there is no longer any visibility. I receive letters every day about potential or major risks of shortages, and this tends to increase. We are preparing for the worst, hoping that it never happens. In this respect, we have recently taken a major decision: to put our components in stock for a strategic range of seats, in order to concentrate on this range and continue to satisfy our customers, even if it means leaving other less important ranges in the background. In my entire career I have never experienced such a situation. We have to review our strategies and decisions continuously from top to bottom, according to the latest information of the day.

What does an information source such as The Merchant mean to you?

As soon as I receive it, I rush to read it. Continuous information has become essential to adjust one's strategy. We now act on a daily basis, in direct contact with our suppliers and partners such as OVRSEA. What we are experiencing is unprecedented and there is no textbook case at the moment to help us make our decisions. Everything relies on instinct and professionalism, pure crisis management. Of course, when we come out of a year 2021 without any break in production and with a margin, in spite of the 10 or 12 crises we have gone through, it's great, and the whole team is proud. Despite the difficulties, all this remains highly instructive and allows us to move forward as professionals. We will be stronger in our future strategies.