Flexible supply chain
A flexible manufacturing is essential to be competitive in order to quickly meet the changes in demand.
The operations are characterized by substantial seasonal variations, as the selling season for lawn and garden products is relatively short, with the high season during spring and early summer. Weather effects may further accentuate the seasonal variations. The need for flexibility and short lead times has lead to a major part of the production resources are located close to the customers in the main markets in North America and Europe.
Optimized production structure
In order to enhance the efficiency and flexibility of production, the North American manufacturing was consolidated to three larger production sites; one for handheld, one for ride-on products and on efor walk-behind products. In Europe a new prodction facility has been established in Poland. There is additional potential in manufacturing and processes in Europe and Asia. The global warehousing within the Group will also be reviewed to optimize inventory levels, transportation and warehousing costs.
More effective purchaing will contribute to reduction of manufacturing cost
The new facility in Poland, was gradually placed on stream in 2011. The facillity was built to meet high demands for scalability, flexibility, quality and cost-efficiency.
Increased purchases from low-cost countries
Purchased components are the Group's largest cost item, thus a major potential to reduce the direct material cost through an improved purchasing process. To succed, the number of product platforms and product variants need to be reduced, thereby increasing scale benefits. Cross-functionality between purchasing and R&D early in the product development cycle is also a necessity in order to better enhance design for manufacturing and thereby cost benefits.