UMC Poland secures exports during the pandemic with KUKE GAP EX
“The impact of the pandemic is visible in all areas of our operations. However, quick decisions have had a positive impact on the situation in our company,” says Witalis Korecki, General Manager at UMC Poland, which used the KUKE GAP EX insurance.
UMC Poland is an example of a company which successfully operates in a very difficult and competitive market of consumer electronics. What are your main operating areas?
Our key operating areas is the production and sale of Sharp, Blaupunkt and private label TV sets for large retail chains. We also distribute small household products, audio equipment, and provide after-sales service for such products. With our qualified staff, we have successfully conducted operations involving repair and service of television sets and repair of LCD panels which are unique operations on a European scale and, among others, this area of operations makes us stand out among the competition.
You have also been successful in your export operations...
Export accounts for 90% of our business. With our newly built logistics centre with an area of 20,000 sq. m. we can effectively export our products to every corner of Europe, with our main markets being the United Kingdom and Germany. The effective and efficient distribution is supported by a well developed structure of sales representatives, contracts with over a dozen transport companies and high business flexibility, which responds to the dynamically changing market needs. Our operations focus on maintaining high satisfaction of our business partners through punctual fulfilment of orders and an individual approach at every stage of the order.
Recently, one more unexpected factor, the pandemic, has been added to the traditional market challenges related to the need to constantly develop and improve our products. How has it affected your business?
The impact of the pandemic can be seen in virtually all areas of our business. Because of close co-operation with Asian countries, we felt the first effects of the pandemic much earlier than in Europe. Despite such an unusual situation, we quickly managed to secure all key operations, which has positively translated to the current situation in our company.
What steps have you taken in response to the pandemic?
Bearing in mind the safety of our employees, we have taken a number of preventive measures. We have created a crisis management committee which regularly monitors the epidemic situation and implements ministerial recommendations. One of the key challenges has been maintaining a high level of supply chain efficiency. Starting from import, effective distribution, to final delivery of goods to the client. Obviously, there were more challenges. However, after several months of the pandemic, we can say that we have successfully managed to continue to strengthen our company on the European market.
The pandemic has also considerably deepened risks related to exports. Do you use any additional support opportunities in this area?
The greater risk related to the exports has significantly affected the credit limits granted by insurers. The limit for most clients has been reduced or even cancelled. Having checked the options available on the market, we decided to work with KUKE and use the GAP EX insurance offered in response to the pandemic. Because of this co-operation, we have been able to reduce the effects of the coronavirus in the area of insurance of receivables. Preferential conditions guaranteed by KUKE are also important, as those conditions allowed us to remain profitable.