Tecumseh Case Study
Tecumseh Products Company is a global manufacturer of hermetic compressors for air conditioning and refrigeration products for various industries, from retail to transport. Tecumseh’s French subsidiary worked with multiple suppliers, but with Essentra Component’s help, they were able to consolidate their supplier base to make the procurement process much more efficient.
CUSTOMER - Tecumseh Products Company
INDUSTRY - Air-conditioning and refrigiration
PROJECT - Procurement consolidation
SOLUTION - Tecumseh streamlines internal buying processes, sourcing a wide range of essential components
THE CHALLENGE
Tecumseh sourced components from six different suppliers. 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.
THE SOLUTION
Essentra worked with Tecumseh to understand their needs. Essentra’s vast range of components was exactly what Tecumseh required, along with 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.
“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.” – Jerome Erba, Industrial Buyer, Tecumseh
RESULT
Essentra and Tecumseh close partnership made the entire process smooth. This resulted in the ideal solution being delivered on time, providing:
Cost savings: Procurement is now a hassle free process. Tecumseh can source their cable glands, locks, cable management and more from one place, making the process far more efficient and cost effective.
Flexibility: Just-in-time ordering means Tecumseh can now save inventory space and simply order parts as and when needed.
Faster assembly: Essentra’s range meant that Tecumseh could reduce the number of cable glands needed for air-conditioning enclosures by 66%.
Expert help: Essentra continues to advise subcontractors on product development. Commitment to new product introductions also ensures Tecumseh’s products continue to innovate.
ONGOING SUPPORT
Essentra’s stock agreement continues to save Tecumseh valuable space. 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 unique relationship of their own, demonstrating the possibilities of what two forward-thinking companies can do who put innovations and their customers at the heart of everything they do.
To find out how the experts at Essentra Components can help your business, call 0345 528 0474 or email sales@essentracomponents.co.uk