BRUYNZEEL KEUKENS

Company background

The Bruynzeel Keukens (BK in this document) was established in the Netherlands in 1897. It started as firm specialized in carpentry, wooden floors and shipbuilding. Due to historical facts, BK became a low-medium range kitchen manufacturer company in the Netherlands in 1982.

2004 Values:

Revenue: 108M€
Expected growth to NY: 12%
Employees: 500
Markets: B2B and Retail

Key factors: • Excellent brand recognition in the Netherlands • Market leader in the construction industry • High quality and performance

2005 background:

The Dutch kitchen market has only three main national manufacturers; BK is the market leader with 23%. Germany is challenging the Dutch Kitchen Manufacturer and export to the Netherlands 300M€

BK wants to start to have also an international market, than it started to export to Belgium (market very fragmented).

2005 Values:

The construction market: • 56% of B2B (B2B not growth strategy)

The retail market: • 31% in retail store and 14% in wholesale • 3-4% of the retail market

Objective: • B2B not over 60% • Double the retail market in 5 years

Operations

• Synchronization between up and downstream supply chains is poor • Increase deliver performance, but suppliers cannot follow the trend (market 2 weeks, suppliers 4 weeks) • Rush orders possible • Level of stocks difficult to identify • The construction marker allows a longer deliver , retail customers lower lead time • 50% of product offering is changing early basis, problem enough stock to handle 10 years warranties, stock to support customer demand and lower the cost of warehouse • Complexity in the offering, solution, drive the complexity upstream at supplier stage

Purchasing strategy

• Procurement dealt directly with 300