A highly successful and market leader with multi site manufacturing and distribution centres in Europe and North America and services the global market
The Business Problem
The company who were under strong price pressures within the market sector from intense competition from the Far East imports were trying to maintain competitive manufacturing within its UK operations. The business was suffering from losing contracts for long term supply and this in turn had an impact on profitability and market share with the other product ranges within their portfolio coming under threat also. This also put the company in a position of losing long term relationships. The UK board recognised that to counter this strong threat they would need to improve their cost effectiveness and improve their manufactuiring capability to ensure more competitive pricing could be achieved
An Aktiv solutions consultant was brought in to identify the assembly and manufacturing processes that were being adopted both internally and externally through the supply chain, a comprehensive process map was undertaken to determine the areas of waste and areas for improved productivity were also identified. During this process several other suppliers of subcontract components were also sourced and were evaluated based on a criteria which had been developed with the Senior management team including Purchasing, Planning and Operations to ensure the company achieved the outcome it had desired, these were based on quality, cost, delivery, and stock levels and over a period of months these items were reviewed and tested before any changes were made to ensure that all parties were committed to the change that was to be undertaken and that the business remained competitive.
The company was able to maintain and indeed improve it’s market share through significant improvements to its quality and delivery by changing suppliers and introducing streamlined systems of Just in Time sdeliveries which enabled stock levels to be minimised thus releasing valuable space to be generated for manufacturing, this improved planning and delivery allowed the workforce to achieve an improvement in productivity which ensured greater customer satisfaction with on time delivery of orders.
The company were also able to enjoy cost reductions of circa £220k from what was a comprehensive overhaul of their business which enabled them to compete effectively within a competitive market
The Aktiv Solutions Mission
Our drive and motivation is the challenge of working with companies to improve their businesses to provide a comprehensive consultancy service that delivers practical and measurable solutions for all types of business issues.