CASE STUDY PRESENTATION

CYNTHIA SHONTAN 14137935

KAAN AYDIN ATAOGLU 14123053

CHOOTHAM THAMMAPALO 14135090

SHAHISTA KARIM 14140896

TABLE OF CONTENTS

I. Brief History of Bruynzeel Keukens

II. SWOT Analysis

III. Challenge Faced

IV. Bruynzeel Keukens Supply Chain Framework

V. Re-designing Bruynzeel keukens SCF

HISTORY

1897: Bruynzeel Company in Netherlands specialized in :• Carpentry• Wooden Floors• Ship Building

1937: Started to manufacture Kitchens in Netherlands

1982: Bankruptcy and Creation of Bruynzeel Keukens (Low and medium range kitchen market in Netherlands)

2004: its sales reached 108 million Euro(Expecting to grow by 12% for 2005)

BK’s Success Factors Locally• Brand recognition in Netherlands• Trust which was given to them by the construction industry• Market Leader(quality, reliability, performance of its kitchen)

2005: Market share was 23% in volume Importing-Exporting 300 million Euro with Germany BK saturated the Dutch market

Realisation• Independence and long term survival in the market relies on capacity to expand

BK’S Success Internationally• Exported to Belgium ( Belgium’s market was still fragmented)

HISTORY

MARKET STRATEGY

BUSINESS

CONSTRUCTION RETAIL

CONSTRUCTION MARKET

Excellent reputation and trust amongst construction companies in the Dutch construction market(Netherlands)

Bruynzeel Keuken was the market leader in B2B (Business to Business)

Market Share was about 56%

RETAIL MARKET

Market share was between 3-4%

Their goal was to double the market share within 5 years

In 2000, BK launched a new store concept called “FUN” experience

Ownership of 23 stores, out of which 4 was created in 2004

In 2005, Bruynzeel Keuken was making 31% from retail stores and 14% in

wholesale

Reasons For Expanding Retail Market

Construction market is saturated, they need to expant the retail so they have to:

Improve strategy in order not to be dependant on this market Keep their Finance state well ( If B2B customers move to another

competition it will affect their finances)

Develop Profit (Selling kitchens in the retail market was more better than

in the construction market)

SWOT ANALYSIS

STRENGTH

• Fun Experience Concept

• Quality, good brand of kitchen

• Market Leader in B2B( Make to order customization)

WEAKNESS

• Logistics (Its operations aren’t effective enough and needed to be improved to ensure good performance)

• Lead Time (No proper synchronization between the upstream and downstream supply chain)

• Variety (40 million different combinations, logistics cant handle its complexity)

THREATS

• Entry of competitor with higher share make BK obsolete due to faster lifecycle :

• SKU’s higher inventory cost

• Loosing B2B if concentrated on profits (i.e retail)

• Logistics• Higher lead time

OPPORTUNITY

•Improve Logistics

• Selection of right suppliers to fulfill demands

• Krajlic matrix

• ABC analysis

Challenges faced

Logistics• Lack of effective communication

• Lead time• Network

Variety• Lead time

• Obsolete products

Bruynzeel keukens actual Supply chain Framework

Market sensitivity

Absence of updated demand

Not competitive

Process

No collaboration suppliers and

buyers

No communication

Lack of reliability with supplier

Virtual integration

Lack of IT to share data

No inventory

Network integration

Absence of coordination

Insufficient structure

No transparency of information

Agile supply chain

Re-designing Bruynzeel Keukens Supply Chain Framework

Market sensitivity

• Forecastability competitive

• Update demand Surveys

Process

• Improve communication

• More collaboration with upstream and downstream

• Develop better relationship with reliable suppliers

Virtual integration

• Adopt a new IT system

• Follow closely the inventory avoid obsolete product and inventory cost

Network integration

• Develop a good coordination within the company information transparent , shared and useful

• Create more structure to get a better delivery system

Recommendations

Forecast driven and Update demand Develop relationship with suppliers Create a CRM Adopt an inventory management Built a good flow of information

Help to target customers demands and make their production based on the information they obtained.

References

6th chqpter of Global logistics, a new direction supply chain management 5th edition, Donald Walters “ Building a more agile supply chain” Remko van Hoek, p92

Bruynzeel keuken case study “ BRUYZEEL KEUKENS: MASTERING COMPLEXITY”

23.06.2006

Any questions ?