At Kimberley we follow a design led supply chain strategy
We developed a strategy addressing this issue after studying European manufacturers of high value added products.
In 2001, we saw (first hand) the success of H&M Stores in Europe (A$7Bn) as a clothing Manufacturer/Retailer with high profitable growth. They had just started moving some of their manufacturing back into Europe from Asia. Their secret was simple:
1. a design led supply chain strategy.
2. design, build and distribute those in house
3. latest designs quickly and regularly.
We follow these principles nearly to the letter!
We also spent time with manufacturing systems at Harley Davidson in USA and saw the tremendous growth in their local manufacturing because of strong designs linked to their brand name. The principles were the same. Drive the supply chain from the design team NOT the procurement (most supply chain strategies are around reducing lead time, reducing inventory levels & reducing procurement costs).
We integrated our 3D design software with our manufacturing software in 2007. It was a big task with the work being done in Canada. The result is that every part designed to be lasercut and folded or moulded has key parameters embedded into the part numbers database in the manufacturing software. When we pull up a list of parts to be made, the software automatically specifies how many sheets of what grade of material are needed for that order. We purchase this material and "free issue" to the laser cutter or folding/pressing company. The cycle time is in less than an hour.
Patented Innovation
The Recreational Vehicle manufacturing Industry in Australia has a low level of patented innovation.
At Kimberley Kampers there was historically no use of patents but a great single Trademark as Intellectual property.
In 2003 we decided to totally change this approach and significantly increase the number and frequency of high value added designs. We now have more than 24 patents and trademarks. The patents are true innovations. 2 patents are international.
With the Karavan project, we decided to add a higher level of “technology” into the equation (and secure Patents). This is different from just design.
For the new MYCUBE project, we are using leading edge materials from the aircraft industry that are reducing weight.
Without patents, it is hard to invest in leading edge designs. This is key to creating a sustainable manufacturing business in Australia.
Model works well in Northern Rivers
More importantly, this model works well in Regional Areas like Northern Rivers where it is easier to recruit and retain skilled design people who like the work/lifestyle balance.
We then can recruit locally semi-skilled people and develop their skills as part of our Training and Development program. We leverage a small number of “crucial” managers.
In addition to the design led supply chain, we already have a computerized Manufacturing System that uses Lean Manufacturing and Kanbans for production efficiency. We do not custom build products. This is not sustainable in manufacturing. Instead, Customer orders are customized by selecting options that are Kanban items at the last point of assembly.
Finally, we are committed to education and training of our employees.
You will not hear us say "I cant get good people". Good people are working for us, the challenge is to retain them. We embarked on a project 2 years ago with a new "state of the art" computerised manufacturing system. There are kiosks in the factory for people to see production orders and print out specs. 6 years ago, there was 1 computer at Kimberley. We now have 12 networked on the manufacturing system and generously encorage all employees to purchase and use computers at home. This has significantly lifted the skills set of employees and the interest of "good people" to work at Kimberley.
