Case Study: Kitchen Equipment Manufacturer

Kitchen Equipment Manufacturer

Purchasing and Business Line Manager:

"We are a major manufacturer of kitchen equipment located in the south west of England."

"Several years ago, in order to maintain our position in the market place we were obliged to review all areas of our operations. This project encompassed reduction on costs and lead-times of bought in components.

Following discussions with Isaac Butterworth we decided to proceed with 4 castings which are required on our regular running machines.

In less than 2 months samples of all 4 parts had been provided to us. Following approval and sign off by our Engineering and Quality Departments products from the first production batch were with us within 3 months and were of identical quality to the approved samples.

The fact that Isaac Butterworth delivered parts into us from stock held at their warehouse reduced our lead-times from months to days. Further streamlining of the arrangement between us and Isaac Butterworth has resulted in the parts now being held at our premises, with us calling off as required on a ‘consignment stock’ basis – meaning our lead-times are now zero days.

In addition to zero lead-time our cashflow has remained unaffected as we ‘pay as we use’, whilst moreover the price we pay per part is some 20% to 40% reduced.

The arrangement for those 4 castings all those years ago encouraged to us add to the portfolio of products supplied to us by Isaac Butterworth such that the range now supplied is some 12 key components.

We are presently looking into what further parts can be added to the arrangement."