Stannah Stairlifts - developing and implementing a European manufacturing strategy to reduce cost and enable growth
Stannah Stairlifts is part of the Stannah group and has historically manufactured in the UK. Sales have grown strongly in key markets such as Germany, France and Italy. However, the growing market for mobility products and low-cost manufacturing had brought new competitors to the market particularly in Europe.
At the same time the supply chain for the custom-made, curved-rail product from the UK to Europe was stretched, with each rail taking several days to design, fabricate and paint - combined with significant logistics costs.
To address this Stannah looked at setting-up manufacturing and supply from Central or Eastern Europe. The company was well aware of opportunities in this region for reducing the labour cost.
However, there was a concern about the potential impact from the extended supply chain on customer service, on the business as a whole and whether the business case would be positive when these factors were considered.
Stannah was not experienced in setting up supply chains in Central Europe, so asked PA to use its experience to develop a strategy and support the subsequent implementation. Stannah have identified a range of benefits including:
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A demonstrable set of options that enabled Stannah to chose a feasible location with ongoing cost and logistics improvements and a projected payback of two years
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The strategy phase completed within time and budget enabling the business to make a decision and move rapidly into implementation
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An implementation delivered to the business's expectations without impact on customer service
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The project has challenged and developed staff from across the business.
To find out how PA can renew your manufacturing strategy, please contact us now.
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