Case study: Varley

Varley is one of Newcastle’s oldest and most advanced engineering companies. They have consistently provided their customers with innovative solutions and quality in design and manufacture for over 125 years.

They are in an extremely competitive market and needed a way to reduce costs, come under budget and deliver on time to meet their customers’ expectations. ovesco was able to work with the engineers to ensure that what was needed was able to be supplied. Varley and ovesco are both local companies that we were able to service each other’s needs and give instant responses to those.

Challenges

A decision was made to reduce inventory to help save on costs. By being able to purchase and get the specific amount of stock needed for a build, less stock was required. Excessive stock is dead money that cannot be used on product that is needed. This also takes up valuable space in the warehouse; thus increasing storage and labour costs.

How we helped

We worked with the build engineers and created a list of materials. This identified the required products and we were then able to design cases that supplied the exact amount of products. By delivering a complete case including products, the assembler has the correct amount of product available for the build at their fingertips, which ensures accountability to the build.

Their results

 "ovesco have been able to satisfy all that we have asked of them these past 10 years and have helped our continuation of vehicle builds", said David Croft General Manager Tomago.

Varley have continued to win tenders by their ability to come in under budget and on time. The kitting case that has been supplied by us has helped their costing modules and given them consistency on their production lines.