Point Of Sale OEM Turns Its Performance Around

A leading manufacturer of brewery dispensing products faced eroding profit margins and a lack of business growth.

We identified the need for flexible and cost-effective manufacturing capacity, with reliable quality and stockholding to underpin business performance.

Customer Challenges

• Reduce manufacturing costs
• Be more responsive to market opportunities
• Find the right partner to deliver success

CEL Group Solution

• Benefit from managed sub-contract manufacturing in our facilities in China
• Stock held in our UK warehouse, with scheduled deliveries
• Managed process to ensure impressive finishing and reliable supply

Customer Results

• £237K manufacturing savings in year one
• £142K reduction in stock holding
• Stock lead times cut from 3 weeks to less than 4 days
• Reject rates now negligible
• Turnover increased 18% in year one

The OEM supercharged the business with CEL Group. £237K manufacturing savings were achieved in the first year alone. Cashflow was boosted by nearly £500K by taking advantage of our UK stockholding service. This released cash for investment in business development, with turnover improved in year one by 18%.