Local supply chain saves manufacturer costs

A WETHERBY office furniture retailer famous for its ‘kite’ tables has cut costs by shortening its supply chain by thousands of miles.

ABF Europe is now using two Yorkshire suppliers to supply components for its innovative office furniture after deciding to move to a ‘just in time’ ordering process following advice from the Manufacturing Advisory Service (MAS).

The firm had previously used a Far Eastern supplier but despite being happy with the quality and cost the arrangement could prove a logistical nightmare with items having to be ordered 16 to 20 weeks in advance resulting in large amounts of stock being held.

Following a review, MAS associate Stephan Matykewicz identified two local suppliers as well as three secondary sources.

Mike Prendergast, co-founder of ABF, said that the firm was now ready to place a £250,000 order with one of the new suppliers.

“This has moved us from an onerous/high risk stock and work in progress to a just in time situation,” he said.

“The new arrangement will also enable us to supply customers with bespoke orders and colour.”

He added: “Through MAS and being able to tap into Stephan’s knowledge and contacts, we have saved a huge amount of time and are proud to be able to tell our UK customers that our goods are made in this country and, even better, in Yorkshire.”

ABF will continue to use its Taiwanese contact to supply some of its growing export business, which currently accounts for 15% of its turnover to countries around the globe including the US Spain, New Zealand and Australia.

The firm was founded in 2000 and has a current turnover of £2m.