Tecumseh Products Company is a global manufacturer of hermetic compressors for air conditioning and refrigeration products to suit various industries, from retail to transport. Over time its French manufacturing subsidiary had accumulated multiple component suppliers but none of the relationships were particularly strong, leaving Tecumseh dissatisfied. Working with so many suppliers also meant higher process costs than were necessary.
Tecumseh France also wanted to save valuable inventory space but working with so many different suppliers made planning difficult. Tecumseh realised there had to be a more efficient way to source commodity parts, a way that would save time, space and money.
Calling on its portfolio of stock and fast delivery products, Essentra were able to work with the buying department at Tecumseh to understand the needs. Essentra’s range of components was exactly what Tecumseh required, along with ready access to free samples so that they could ensure what they ordered was exactly to specification.
With Essentra, they were able to consolidate their procurement process from six suppliers to one and take advantage of just-in-time ordering.
Jerome Erba, Industrial Buyer at Tecumseh explained: “Essentra Components broad range allowed us to gain key production efficiencies. We were able to reduce of the number of cable glands used by 66%.”
The new arrangement led to cost savings in a hassle-free process whereby Tecumseh can source their cable glands, locks, cable management and more from one place, making the process far more efficient and cost effective. The flexibility of just-in-time ordering means Tecumseh can now save inventory space and simply order parts as and when needed, along with increased speed of assembly.
Moving forward, Essentra provides help and continues to advise sub-contractors on product development. Commitment to new product introductions also ensures Tecumseh’s products continue to innovate.
Ongoing support from Essentra means that their stock agreement saves Tecumseh valuable space, while a close relationship has been forged with Tecumseh’s sub-contractors, helping ensure superior products are brought to market. Essentra Components and Tecumseh have a good relationship of their own, demonstrating the possibilities of what two forward-thinking companies can do who put innovation and their customers at the heart of everything they do.
Erba commented: “The wide range and service from Essentra Components meant it was a simple decision to reduce our supplier base, which has made the whole buying process much more efficient.”