SWOT analysis of Bruynzeel keueken and bruynzeel Keukens Supply Chain Framework, Re-designing Bruynzeel keukens SCF

1. CASE STUDY PRESENTATION
CYNTHIA SHONTAN 14137935
KAAN AYDIN ATAOGLU 14123053
CHOOTHAM THAMMAPALO 14135090
SHAHISTA KARIM 14140896

2. TABLE OF CONTENTS
I. Brief History of Bruynzeel Keukens
II. SWOT Analysis
III.Challenge Faced
IV.Bruynzeel Keukens Supply Chain Framework
V. Re-designing Bruynzeel keukens SCF

3. HISTORY
1897: Bruynzeel Company in Netherlands specialized in :
• Carpentry
• Wooden Floors
• Ship Building
1937: Started to manufacture Kitchens in Netherlands
 1982: Bankruptcy and Creation of Bruynzeel Keukens
(Low and medium range kitchen market in Netherlands)
2004: its sales reached 108 million Euro(Expecting to grow by 12% for 2005)

4. BK’s Success Factors Locally
• Brand recognition in Netherlands
• Trust which was given to them by the construction industry
• Market Leader(quality, reliability, performance of its kitchen)
 2005: Market share was 23% in volume
Importing-Exporting 300 million Euro with Germany BK saturated the Dutch market
Realisation
•Independence and long term survival in the market relies on capacity to expand
BK’S Success Internationally
•Exported to Belgium ( Belgium’s market was still fragmented)
HISTORY

5. MARKET STRATEGY
BUSINESS
CONSTRUCTION RETAIL

6. CONSTRUCTION MARKET
 Excellent reputation and trust amongst construction companies in the
Dutch construction market(Netherlands)
 Bruynzeel Keuken was the market leader in B2B (Business to Business)
 Market Share was about 56%

7. RETAILMARKET
 Market share was between 3-4%
 Their goal was to double the market share within 5 years
 In 2000, BK launched a new store concept called “FUN” experience
 Ownership of 23 stores, out of which 4 was created in 2004
 In 2005, Bruynzeel Keuken was making 31% from retail stores and 14% in
wholesale

8. Reasons For Expanding Retail
Market
 Construction market is saturated, they need to expant the retail so they
have to:
 Improve strategy in order not to be dependant on this market
 Keep their Finance state well ( If B2B customers move to another
competition it will affect their finances)
 Develop Profit (Selling kitchens in the retail market was more better
than in the construction market)

9. SWOT ANALYSIS
STRENGTH
• Fun Experience Concept
• Quality, good brand of
kitchen
• Market Leader in B2B(
Make to order
customization)
WEAKNESS
•Logistics (Its operations aren’t
effective enough and needed
to be improved to ensure good
performance)
•Lead Time (No proper
synchronization between the
upstream and downstream
supply chain)
•Variety (40 million different
combinations, logistics cant
handle its complexity)
THREATS
• Entry of competitor with
higher share make BK
obsolete due to faster
lifecycle :
• SKU’s higher inventory
cost
• Loosing B2B if
concentrated on profits
(i.e retail)
• Logistics
• Higher lead time
OPPORTUNITY
• Improve Logistics
• Selection of right
suppliers to fulfill
demands
• Krajlic matrix
• ABC analysis

10. Challenges faced
Logistics
• Lack of effective communication
• Lead time
• Network
Variety
• Lead time
• Obsolete products

11. Bruynzeel keukens actual Supply chain
Framework
Market sensitivity
Absence of updated
demand
Not competitive
Process
No collaboration
suppliers and buyers
No communication
Lack of reliability
with supplier
Virtual integration
Lack of IT to share
data
No inventory
Network integration
Absence of
coordination
Insufficient structure
No transparency of
information
Agile supply
chain

12. Re-designing Bruynzeel Keukens
Supply Chain Framework
Market
sensitivity
•Forecastability
competitive
•Update demand
Surveys
Process
•Improve
communication
•More
collaboration
with upstream
and
downstream
•Develop better
relationship with
reliable suppliers
Virtual
integration
•Adopt a new IT
system
•Follow closely
the inventory 
avoid obsolete
product and
inventory cost
Network
integration
•Develop a
good
coordination
within the
company 
information
transparent ,
shared and
useful
•Create more
structure to get
a better delivery
system

13. Recommendations
 Forecast driven and Update demand
 Develop relationship with suppliers
 Create a CRM
 Adopt an inventory management
 Built a good flow of information
 Help to target customers demands and make their production based on
the information they obtained.

14. References
 6th chqpter of Global logistics, a new direction supply chain management 5th edition, Donald
Walters “ Building a more agile supply chain” Remko van Hoek, p92
 Bruynzeel keuken case study “ BRUYZEEL KEUKENS: MASTERING COMPLEXITY”
23.06.2006

15. Any questions ?