SUSTAIN Lincolnshire is an initiative led by Lincolnshire County Council to promote and support resource efficiency amongst small and medium enterprises in Lincolnshire. This case study and our online information are intended to help manufacturers become more resource efficient, avoid unnecessary costs, make savings, whilst maintaining a sustainable theme.
Becoming smarter in the way a company carries out its purchasing of products and services will have a direct effect on profitability, and create a much better awareness in the sustainable use of resources, thus reducing waste in process, material and services.
Smart and Sustainable Purchasing advice is being delivered by Oakwell Management Services Limited as part of Lincolnshire County Councils SUSTAIN Lincolnshire Programme. For further information and support contact SUSTAIN Lincolnshire on 01522 589964 or email email@example.com.
Success stories – reducing costs and increasing profits …
Securiti Limited are a company who manufacture metal vehicle security products primarily for caravans, trailers and motor homes. On site activities include, metal cutting, machining, welding, packaging, assembly and despatch. As well as these operational issues, design is a key function of the Boston facility, as it is essential to continually develop security products to stay at least one step ahead of the criminal fraternity. To make continual enhancements in design and production, expert procurement help is required to fund prototype developments, whilst continuing to develop sales turnover with new customers.
Cost avoidance and savings
After an initial assessment of purchasing activity, efforts were focused on sourcing from local suppliers, metal reduction by smart design through use of the Manufacturing Advisory Service, and training in purchasing techniques.
A review of training needs identified several areas for further support.
1. Reduction in metal usage and different materials
2. Reduction in the amount of packaging per product.
3. Negotiated savings on various product components
4. Savings at current forecast sales are estimated to be in the region of £6000 per annum
• Took direct action with suppliers to avoid unnecessary costs, and negotiated direct reductions in price, without increasing quantities ordered.
• Accepted the need for more training in purchasing, and agreed to adopt the principals in the sustainable purchasing workbook.
• Agreed to work with other metal working companies and collaborate in joint purchasing activity within their cluster.
Securiti Ltd said; ‘I’m not sure how I would have funded the new product development without the Sustainable Purchasing and MAS involvement, both are very worthwhile and supportive programmes.’