INSIGHT | Supply chain health check
PAUL O’BRIEN, KITCHENS INTERNATIONAL
Managing expectations
Brand director Paul O’Brien explains how Kitchens International navigated through the worst effects of the supply chain issues with a significant investment in more warehouse space and good communications with suppliers and customers
t’s been said that resilience is ‘the capacity to maintain your core purpose and integrity in the face of dramatically changed circumstances and accept the new reality – even if it’s less good than the one before’.
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It would be an understatement to call the supply chain issues that we’ve all experienced and are still experiencing, as simply ‘less good’! It has created untold pressures on our respective businesses. Managing understandable client frustration in turn impacts the morale of conscientious staff, who are desperately trying to complete projects. The constant chasing of materials and goods also puts a strain on relationships with key supply partners. At Kitchens International (KI) we have worked hard to maintain a focus on our core purpose of creating the ultimate kitchen experience for our clients, supporting our staff and collaborating with our key supply partners. So how do we help mitigate the supply chain problems? Firstly, communication is key. Our first level of responsibility is to our clients and to setting realistic levels of expectation from the start. With the support of our key suppliers, we have endeavoured to keep clients abreast of supply delays and shortages, albeit it has caused real challenges and frustration, both from a client and staff perspective. I think it’s easy to overlook the impact that supply chain issues have had on staff morale, and the emotional investment required to support front-line staff is as great as the commercial investment.
In some instances, and with agreement from clients, this has resulted in us delaying the start date on full projects where we are appointed on a turnkey basis and in control of the full process. A delay can be managed if communicated properly. On dry-fit projects and contract developments, where we are part of an extended team, this has proved more difficult. With construction sites equally affected by their respective supply chain issues, we’ve had to continually
We have taken a proactive decision to increase our key stockholding of appliances from around £350,000 to £750,000
evaluate our programme of works to align with an ever-moving target. However, with good communication at least we manage expectations. Secondly, the commercial impact of these delays has resulted in the need for us to expand our current warehousing from 25,000sq ft to 35,000sq ft. As well as the financial investment involved – around £200,000 – there has been the logistical challenge of staffing and manning additional warehouse facility. By increasing our warehousing capacity and, as well as dealing with the backlog of site delays, we have taken a proactive decision to increase our key stockholding of appliances from around £350,000 to £750,000. This has allowed us to focus on a core KI appliance range and to take control as best we can. In cases of unavoidable delay, we have committed to providing our clients with temporary appliances. Although not ideal, the gesture has been appreciated and generally well received. The subsequent replacement of these appliances is another financial cost, as well as a strain on resource capacity. There’s no doubt the extra financial burden is not something we’d planned for, especially in these challenging economic times. But faced with the reality of ‘dramatically changed circumstances’, we believe it has allowed us to gain more
control of our service and our brand reputation. In the long run, hopefully, the newly acquired space and resource capacity will provide a platform for growth. There seems to be light at the end of the tunnel and the situation is improving. Furniture lead times have improved from what were unsustainable levels – last year in some cases the lead time was 22 weeks – to a more manageable position, making it easier to fulfil client expectations.
There are still some specific appliance models on back order – combination steam ovens, wine cabinets, downdraft hobs, which we manage on a day-to- day basis, although our core stock strategy has mitigated a lot of the issues. Finally, I firmly believe that it’s through periods of adversity that brand values are put to the test. At KI, we believe in the importance of trust with not only our clients and staff, but also key suppliers – it’s a concept we refer to as the KI ‘arena’ approach. We are very fortunate at KI to have good relationships with our supply partners and we have maintained close communication to work our way through these challenging issues.
There have been some difficult conversations along the way, but maintaining integrity and a realistic perspective has been vitally important, not only to finding solutions but to strengthening our collective resilience. Here’s hoping the new reality is ‘more good’ as we move forward.
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• April 2023
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