In March, 1917 a young inventor and entrepreneur Arthur Parker started a Parker Appliance Company to manufacture devices based on a new motion control technology. In 100 years the company grew into a global leader in motion control technologies.
In 2017 this significant milestone served as an occasion to reflect on the achievements and at the same time clearly defined the need for the future development plan.
The history of Parker company is the most fascinating story on its own about technologies transformation for over a 100-years period, both in industry, and in the way of business practices.
Distributor startups first appeared and further developed in the USA in the 50s of the last century. This has also opened the way to the concept of a distributor. Parker Hannifin special attitude to distributors as a key factor of business development distinguished the company from other manufacturers. This approach allowed for the diversification of products and elevated the company’s profile in a variety of markets. The company growing production in the 70s, opening subsidiaries in Brazil, Mexico, Japan and Singapore led to a growing number of Parker distributors.
Because the divisions were spread across the United States and linked to acquired companies, distributors became key business partners, offering products directly to customers.
Parker Hannifin’ evolution into a global corporation involves its network of distributors.
VSP was the first company in Russia to actively start operating in the CIS and the Baltic states market in the mid 90s as Parker Hannifin products distributor. As of 1996 VSP company has been an authorized Parker Hannifin distributor.
For over a 20-years period of cooperation with Parker Hannifin, our company in a natural way experienced changes taking place at Parker, in the corporate principles of business practices as well – from direct contacts with the management of the Division in the UK, to a number of agreements signed with European representatives in charge of the Russian and CIS markets, and later with a Moscow Parker representative office.
In the 90s many Western representatives were looking for the ways to get to the Russian market, later on giving serious consideration to building partnerships with Russian companies. And it is hardly possible to overestimate the role of personality with regards to this. Interest in cooperation, attention to problems, determination to get to the depth of contraversial specifics of a Russian market taking shape, were characteristic of Ron Arthur, a Vice-president of Parker Hannifin, who was a welcomed frequent visitor to the VSP office in Moscow at Komsomolsky Prospect.
In turn, VSP representatives also had opportunities to voice their point of view on building and developing business to the partner.
Parker Hannifin European Headquarters.
Meeting of VSP specialists with Parker Hannifin with Ron Arthur, Vice-president, 2009.
Another detail in the history of our relationship: VSP company, registered in 1996, had been working side by side with Parker Hannifin Representative Office at Komsomolsky Prospect in Moscow for a number of years. VSP as a distributor, operating next door to the official company representative at the time, Mikhail Baydin, — the situation turned to be fruitful enough: ranging from on-line business solutions to building strategic relationships with customers in the market; from solving technical questions to training VSP specialists.
Business meeting practice and discussions of concrete questions are still valid for today.
In 2009 Parker Hannifin introduced a new classification principle for distributors. The company worked out some criteria, based on which the relationship with distributors in Russia was revised.
VSP was assigned the status of a Certified Distributor (Process Control). This has allowed us to access a whole list of special programmes and opportunities, which we extended onto our customers.
Meeting with a Parker Hannifin representative at the VSP Moscow office, June 2017.
VSP at an annual Parker Hannifin distributor seminar in Moscow, 2014.
In 2015 a new platform for interaction was introduced. Parker suggested to establish a new basis for relationship with partners in the Russian market – Distributors’ Council. The interaction between a manufacturer and a distributor, additionally coordinated work in the end aiming at improvement of services on the market.
As of the 1st of July 2016 VSP has been operating in the status of a Premier Distributor as per Parker Hannifin rating.
Parker Hannifin Distributors Conference, Instrumentation Products Division,
Parker Hannifin corporate culture is reflected in the basic values: win spirit, engaged personnel, valued customers, and concerned leadership.
In our understanding marketing is part and parcel of other business processes. For this reason, exhibitions for us represent a form of communication with a customer.
For a decade, we have traditionally participated in one of the major industry events – Oil&Gas exhibitions in Moscow; some of them we carried out jointly with Parker Hannifin.
Working at OilGas-2014, we decided to focus at technologies of our partner-manufacturer.
Main lines of our market activities in terms of Parker were presented at the stand: IPD and Ermeto; hoses and tubes; sealing products. Customers were interested in solutions on a wide technological range of Hydraulics and Electromechanics as well.
And in 2015, Parker and VSP participating jointly at MIOGE-15 added more accents to our marketing practice. VSP presented some new information literature, including a special brochure on engineering solutions and Parker Hannifin technologies.
«It is the Parker culture and values, more than any strategy or measure that will determine our success in the future”,
Thomas L. Williams, CEO
The history of cooperation is most vividly reflected in the work with customers. Focusing on the main most demanded lines of business and products at every individual period of its activity, Parker Hannifin developed and strengthened its positions as the manufacturer, at the same time influencing the market.
In line with its understanding of the distributor’s mission to conduct ideas and promote advanced manufacturer’s solutions, VSP from the very start of activities was building up its customer data base, with most customers remaining active users of Parker products up till now.
Cooperation with KINEF may serve a perfect example of a long term relationship in the market, carried out for 15 years already. Many of the new Parker products and technologies were presented to the plant specialists, have passed trial operation and are actively applied at the plant.
Some of the solutions Parker Hannifin customised to fit special requirements. Exactly 10 years back, March 2007, under the frames of a trilateral working meeting – KINEF, Parker, VSP – a new improved Mono-Ball flanged pressure and temperature instrumentation manifold was presented. The solution allowed for efficient technical characteristics in line with a universal approach.
One of the recent projects, in which we participated in terms of Parker Hannifin instrumentation was the construction of a new LK-2B installation at KINEF. VSP specialists provided a comprehensive technical support for Lengiproneftekhim engineers at the stage of the project generation. A VSP representative was tendering at Surgutneftegas, and in the result of the procedure Parker Hannifin solution was chosen by the customer as the best offer not only by technical criteria, but based on the price level as compared with competing bids as well.
Regular VSP and Parker Hannifin business contacts with KINEF specialists and management help to better understand
market requirements, and in its turn enhance efficiency of the operation.
KINEF, Parker Hannifin and VSP meeting at Kirishi
on cooperation matters, 2016.
One of the important lines of VSP operations is development of relationship with Lukoil Group enterprises aiming at reaching higher level of customer satisfaction. Steps and measures initiated as early as 2010 covered technical seminars on Parker Hannifin products, special customer technical support terms, special commercial terms and warranty support etc.
Our persistent work in this direction turned to be really fruitful. Multiple projects on supply of Parker Hannifin products for Lukoil enterprises carried out by VSP for several years direct to the customer site or via integrators included: instrumentation products, manifolds, fittings, valves, tubings and other products.
Applications cover both oil production companies working under stringent conditions — ice-resistant stationary platform LSP-2; off-loading Varandey terminal;
OOO Verkhnechonskneftegas; Korchaginskaya oil drilling installation,as well as oil refineries: LUKOIL-Nijegorodnefteorsynthez; LUKOIL-Nijnevoljskneft; LUKOIL-Permnefteorgsynthez and others.
05.2016. A business trip to Perm. Process installation survey.
At the end of May, for two days, a team of Parker Hannifin and VSP employees had been working in Perm. The main aim of the trip was to meet with LUKOIL-Permnefteorgsynthez specialists. A survey of one of the installations at the plant took one working day. Some preliminary suggestions to further optimize a number of engineering units were generated; a presentation of Parker Hannifin specialised solutions carried out — with the final goal to provide for a long-term and uninterupted operation of production units.
Choosing instrumentation products and implementation of projects in oil&gas sector could be a challenge, due to various stringent rules, limitations and operational conditions.
A unified equipment fleet helps to avoid the risk of using products by different manufacturers at one site/installation: different technical specifications, materials, various flow rates ratings, which can affect operational characteristics, though products could be of the same industrial standard.
Working with Parker Hannifin means that system components are tested to comply with a necessary standard, and there are documents available to support this. In the sector of industry specifically concerned with safety and reliability, working with the manufacturer of an extensive range of products provides for several advantages underpinned by test data.
Parker Hannifin News.
Barnstaple, Devon, 7. March 2018.
Parker Hannifin Corporation, has signed a new Enterprise Framework Agreement (EFA) with Shell for the provision of instrumentation valves, manifolds, process-to-instrument valves, fittings, tubing, protective enclosures and related products. As per the EFA spanning 4 years, Parker’s Instrumentation Group will supply a broad range of process instrumentation products to Shell and its affiliates worldwide.
"We are proud to see our clients place their confidence in our products and services. We believe that such cooperative relationships between major players in their respective spheres will help establish new standards for performance, safety and cost reduction.», Nicolas Villemain, Division Market Development Manager of Parker Hannifin Instrumentation Products Division, Europe.
One of the factors for such a decision is Parker’s long experience in designing and manufacturing instrumentation using corrosion resistant alloys that optimize protection in upstream and downstream environments.
High quality and the level of applied technologies to manufacture Parker Hannifin product range is the manifestation of many years of developments and field tests carried out in various sectors of machine building.
Parker Hannifin solutions are integrated into systems of a high speed «Sapsan» train. Quality and reliability of Ermeto products provide for application in the most critical tasks covering the ones directly connected with transport safety.
At the end of April 2015 VSP signed a Frame Agreement with Siemens AG for supply of Ermeto products by Parker Hannifin allowing for technical maintenance of transport in Russia.
Parker technologies and systems are widely used in a variety of industry sectors and applications. About 500 000
Parker customers use products practically in every critical segment of manufacturing, transportation or processing industries. Diversified markets include OEM-manufacturers as well.
Based on a wide Parker Hannifin product range, we are capable of working on a cross-section of various industries and technologies, including such strategically important ones as health and safety, occupational safety, disaster medicine.
For some years VSP specialists have been cooperating with one of the leading Russian development companies in the field of emergency rescue equipment, fire fighting and special equipment, a long term VSP customer — the «PTS» company.
The criteria of quality and reliability for PTS products – compressed air breathing apparatus, self-contained breathing apparatus with compressed oxygen, simulators for fire fighters and rescuers, and other solutions – leave no place for additional comments. People are in direct contact with PTS products — and all the components call for the highest level of performance. This is exactly why Parker Hannifin solutions are in demand with PTS tasks, including quick couplings, sealings, pressure regulators, hoses.
In September 2017 VSP and Parker Hannifin employees held a number of joint meetings with the «PTS» company and project design organisations.
More and more the world is turning towards renewable energy resources, and electrical grids face most important task of providing uninterruptible electrical power supply.
Parker Hannifin avails of considerable experience in accumulating and energy storage — from inverters to complete systems of storage batteries.
As of today implemented Parker Hannifin solutions worldwide provide for over 150 megawatt of accumulated energy.
The VSP Company has an offer for the Energy market. Our specialists are working along different applications. For example, one of the interesting subjects — further plans for application of Parker Hannifin solutions in RusHydro refurbishment projects under the frames of a wide scale upgrade of energy sites all over Russia.
Under the framework of a refurbishment of the Miatlinskaya hydro electric station (RusHydro) in Dagestan, our company fulfilled an order for supply of a considerable scope of Parker Hannifin products for a German machine building group Voith, acting as an engineering expert and procurement company for the project.
Electrical generation business line is gaining more importance for our team, and we are looking forward to new interesting tasks in the power industry.
Parker Hannifin is permanently considering and evaluating feasibility of investments into new products, availing of an extensive network of proprietary laboratories and test centres around the world.
The product range and a variety of technologies used, provide for Parker Hannifin leading position in the market place.
Any product contains an intellectual value, either a patent or a know-how, a manufacturing process or material science —all making the product valuable for the user.
Just in 2017, total investments into development of new products and improvement of the manufactured ones amounted to $336,7 M.
Sometimes a detailed technical specification of a product is not enough. There are applications which require testing of a product in the field, in real operational conditions to be able to evaluate its competitive characteristics.
Recently VSP has launched a Test & Buy Programme, and we are now «testing it in the field». We agreed to supply a Parker Hannifin drive to one of our customers for operational testing. We would expect the customer to gain practical evidence of the technological level of Parker Hannifin solutions for automation.
«The Company’s business operates in highly competitive markets and industries. …These competitors and the degree of competition vary widely by product lines, end markets, geographic scope and/or geographic locations. Although each of the Company’s segments has numerous competitors, given the Company’s market and product breadth, no single competitor competes with the Company with respect to all products manufactured and sold by the Company», from Parker Hannifin Annual Report 2017.