ELICO Commitments

COMMITMENT TO SUPPLIERS AND CLIENTS

Hides and skins suppliers

In spite of the advancement among livestock farmers and a rising animal population in Ethiopia, the price of hides and skins has gone up remarkably.  It was a smooth functioning market until recently.    The current cost of a piece of sheepskin is around $4, double the price compared to a year ago.  The increased price by more than 100 percent has negatively affected local tanneries exporting crust.  Currently several steps are being taken to limit overseas investment in tanneries and it is expected that exports of crust would be highly taxed to encourage value addition from January 1, 2012. 

ELICO together with like-minded companies is trying to convince the government to intervene as it is not a healthy competition; as the price of raw sheep skin is almost at the level of crust export price. This has a social cost as most traders will be out of business, and consequently these companies would not pay income tax to local governments.

Chemical Suppliers

ELICO first got ISO accreditation in 2004 and its underlying principles of transparency and shared information tradition feature strongly in the company’s culture.  This applies to its purchasing strategy too. 

ELICO enjoys and has secured the trust of its diversified customers both at home and at international levels.  Some of its customers such as Rockel, Naigai, Grandoe, and Sekowang are internationally renowned companies.  For ELICO, meeting the stringent and demanding criteria and maintaining the good partnership of these renowned companies is not an easy task. However, ELICO has maintained smooth relationship with its clients because it strives to meet the best interest of its partners and works in close collaboration with its customers.

ELICO’s deep rooted strong belief of a close and symbiotic relationship with its customers remains at the centre of this relationship. This understanding and cooperation starts in the early business agreements and grows as time goes on, getting nourishments from the day to day interactions and understanding. The continued relationship with its customers is vital for its success in its endeavor to capture more market and grow hand in hand with almost all of its customers. This bondage has grown in some cases to techno commercial partnership for the entire benefit of the two parties.

Customers are valued much and every attention is given to address their requirements. In times of difficulties the, problems are put on the table to find out amicable and plausible solution to the best interest of the two parties.  The Company does not seek short term benefits and insists and focuses on a win/win problem solution scenario on a long term basis. It fosters fraternal relationships and learns from the negatives and grows from the positives.

The relationship with clients, in some aspects, transcends normal business deals and extends beyond the boundaries of normal transactions.  This very close relationship has helped ELICO grow beyond the threshold of normal growth.  Some prominent customers go further forward and lend their ears and support in improving quality and contribute a lot in solving the company’s problem whenever required. This modality works both ways.

ELICO conducts periodic customer’s satisfaction monitoring exercise to help it collect relevant information and opinions which help bring together ideas and pictures of customer feelings. This is above and over the routine order by order follow up and gauging of feelings of customers.  Such periodic monitoring helps ELICO investigate problems and understand the requirements of patrons.

ELICO works and endeavours for long term relations and follows a predictable trend so that customers feel confident about the supply and price for at least a specific time frame.  It also provides alternative products to help its customers get better edge and compete in the market.


COMMITMENT TO EMPLOYEES AND COMMUNITY

ELICO believes that one of its resources is its diligent manpower and its success depends on the effectiveness of its human resources and thus encourages employees for successive training in all possible ways.  Apart from various in-house trainings provided by the Company it also covers full tuition fee for employees who attend evening class and at graduation they are assigned at a position their education merits.

All employees of ELICO have health insurance, and if an employee is sick, he or she can receive full pay plus medical expenses for three months. Specialist teams receive special care, i.e., the 12-strong group of men and women who carry out quality sorting of sheepskins at pickle stage each receive an annual eye test. The Company has a clinic with a full time medical doctor and two nurses and a special program for HIV/AIDS positive employees. 

The canteen is subsidized so that employees could buy a hot dish with a very affordable price.  The tannery premises also has a full-size football pitch, as well as smaller areas on which people can play volleyball at lunchtimes, or at weekends.  These open spaces also attract children from the community that live close to the tannery. 

There is good relationship with the community around the factory.  As most of the employees are from the area it even avails its service buses and pickups for special functions of the environs.  Employees contribute money whenever requested for national causes and also gone beyond borders by contributing a solidarity fund for Japan’s earthquake and Tsunami victims.

When the area near the factory was flooded once, ELICO staff was the first to assist in particular by building a diversion for the water so that the water can directly enter the river which has given a permanent solution to the area.  ELICO has also agreed recently to build a new road in the area and set up communal water taps to the community around its production site. The Company actively participates in the environmental and green beautification program, most often availing funds.  ELICO has received certificate of appreciation for its contribution to the environment program of the sub city.