Lemvigh-Müller A/S

Background

Lemvigh-Müller is the largest steel and technical wholesaler in Denmark with a network of 23 branches. It serves several different markets, including construction and electrical installation, and promises to deliver goods to installers and other customers in less than 24 hours. In addition to being an efficient and reliable logistics partner, the company offers a range of additional services and solutions tailored to the needs of its customers.

Challenge

In Denmark panel builders provide electrical distribution and circuit protection for domestic and commercial properties. Traditionally, they would put together a bespoke solution depending on the individual needs of the customer and the size of the installation. This could often prove time consuming for the final customer and expensive as labor costs in the country are particularly high.It also meant that Lemvigh-Müller had to keep a lot of stock in their warehouse to ensure that they could fulfil an order and meet the tight deadline demanded by the installer who would want the solution immediately. This could cause inventory issues if, for example, a circuit breaker was missing. The company therefore decided to develop ten standardized panel boards, which would meet the needs of a majority of domestic and small commercial installations. 

When the electrical regulations changed, it resulted in a requirement for circuit protection solutions to provide earth leakage protection to prevent electric shock using two RCDs and surge protection –subsequently, standardizing the panels was possible to an even greater degree. 

With the panels being well accepted in the market, Lemvigh- Müller asked the Eaton Denmark Sales office to also optimize its logistics process right through from order placement, assembly at the panel builder's site, to delivery of assembled panel board to a Lemvigh-Müller branch or site.

Solution

Taking current market trends as well as regulations into account, Lemvigh-Müller, Eaton and X-El Tavler worked with a technical school professor to provide the optimal combination of circuit protection devices in the panels. 

As the panel boards are a part of Lemvigh-Müller's standard assortment, the company also wanted to focus on optimizing its warehouse inventory management and streamlining the order process.

In close collaboration, Eaton Value Added Services and the Eaton Denmark sales office developed a solution which allowed a simplified order process for both the customer Lemvigh-Müller and the panel builder X-El Tavler. For each type of panel Lemvigh-Müller offers its customers, Eaton created a KIT which is identified by a single article number. Each KIT contains all the electrical components required for ten sets of panel boards, as X-El Tavler's work stations are designed for building ten panel boards at a time. Additionally, Eaton's Value Added Services unpacks all devices in the KITs and sends them directly to the panel builder's site, which allows Lemvigh-Müller to improve its stock profile, while X-El Tavler benefits from increased efficiencies.

Result

The solution provided by Eaton's Value Added Services can be considered a win-win for all involved parties. By having all of the devices needed for ten panel boards in a single kit with a dedicated product number, X-El Tavler can be sure that they have everything needed readily at hand and it also means that the panel builder only needs to process one order for ten panel boards instead of ordering all circuit protection devices for the boards individually. In addition, there is less packaging, less waste and less time involved, as the workers do not have to unwrap individual devices.

Meanwhile Lemvigh-Müller has the satisfaction of making the provision of electrical distribution more efficient to guarantee a fast and safe solution for their customers. By outsourcing the stocking and delivery of the electrical components for bespoke boards, the company has also reduced its stock in the warehouse and has seen a decrease in labor and transport costs.

Jesper Lund Andersen, Category Manager, Lemvigh-Müller comments: "By working closely with Eaton and X-El Tavler we have managed to significantly cut the amount of stock that we need to hold. It means that instead of holding depth of stock to ensure that we do not let any customers down, we can now increase the breadth of stock that we have to offer them more choice. As a result, we have a better stock turnover profile for the warehouse and better cashflow, which are key metrics for our business."

In addition, the installers benefit from the improved set-up. Standardizing the panels boards and streamlining the logistics process allows Levmigh-Müller to offer installers competitive prices. Installers can also reduce labor time to provide more competitive quotes or tenders for projects, since they receive standardized, fully assembled panel boards. Using preassembled board speeds up the build in new building projects, as other trades can get on site more quickly, and for refurbishment there is less disruption for tenants and owners.

Furthermore, the specifier and installer can be confident in the final solution for their customer, as X-El Tavler assembles and tests the boards in a strict quality-controlled environment.

"This is a great example of the supply chain working together to improve the speed and service to both the installer and the final customer. Working closely with Eaton Value Added Services, Eaton Denmark and X-El Tavler, we have changed how electrical protection is specified and installed in Denmark. Everyone can be confident that they are getting a faster service with guaranteed safety.", states Jesper Lund Andersen, Category Manager, Lemvigh-Müller, highlighting the great collaboration between the different teams.