SPENCER DAVIES ENGINEERING LTD

Thanks to a carefully-planned e-business strategy, Spencer
Davies Engineering has dramatically improved the efficiency of
its production process and expanded the breadth of its offer.

Best practice in:    Technology
Sector:              Engineering
Size of firm:        45 employees
Location:            Carmarthenshire
Website:www.sde.co.uk


OBJECTIVES

Spencer Davies has introduced technology across the company,
from a website and customer database to CAD/CAM, an intranet
and production control on the shop floor. Its strategy has been
to balance bigger, structural investments in core functions -
such as in CAD/CAM - with smaller applications that reduce
employees' administrative burdens. The result of this approach
is that each successive investment brings specific and
cumulative benefits.
For example, the original CAD/CAM investment improved the
quality, speed and breadth of offer. When combined with email,
which now accounts for 60% of client communications, designs
can come directly from clients and go immediately to the shop
floor, saving up to a week on every job. Handling the processes
electronically makes then easier to review and the company can
now hold less stock, ordering online from suppliers to secure
the best deals.
The company intranet includes a research library, company
documentation, job descriptions and a contact database of
customers and suppliers. This has been integral in maintaining
internal communications, giving staff the tools they need, and
improving customer service.
Offsite engineers, meanwhile, are equipped with laptops, digital
cameras and mobile phones so work can be budgeted,
completed and approved on the spot.
The company is also looking at integrating other aspects of its
supply chain: it uses online procurement for office supplies and
puts outsourcing enquiries on the internet via engineering
bulletin boards.


THE BENEFITS

Spencer Davies' e-business strategy has allowed it to expand
while continuing to streamline its business. Its ICT investments
have also produced greater auditing and management
reporting facilities, giving the company the ability to evaluate
future investments before committing financial resources.

"We've been able to quantify the benefits thanks to technology,"
says Owain Davies, Managing Director.
The time taken from design stage to the finished product has
been dramatically reduced. Today, if the information is sent
electronically by customers, the job can reach the production
stage within 30 seconds.
The company is now better equipped to tackle more complex
engineering projects and consequently appeals to more
potential customers. "Our investment in technology has
allowed us to develop the business and look at new markets,"
explains Owain.


THE CHALLENGES

The improvement in communications with suppliers has been
due in large part to enthusiasm from Spencer Davies
Engineering. "Most of our suppliers are not eager to work
electronically and that's a barrier," admits Owain. "What I'm
trying to do is show the benefits of technology and persuade
them to come on board. Once they see the business benefits,
we can usually win them over."


THE LAST WORD

In addition to the direct benefits of the company's investment
in ICT, Owain has noticed some equally important, but
unexpected results. Spencer Davies' positive, forward-thinking
attitude is producing a competitive advantage. "We are getting
some valuable customer referrals," explains Owain. "Our use
of technology gives them the confidence to recommend
our services."

"Technology has definitely allowed us to get more for
our money. It's now easier for us to sell because of the
information that we have."

OWAIN DAVIES - MANAGING DIRECTOR