Business Awards: Tungate Group Automotive Division
'IT DOES what it says on the label' is a no-nonsense sales pitch in any industry.
But when it comes to the automotive world there can be scores of labels per vehicle.
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And thanks to the scale of the industry, the labels themselves have become specialist products in their own right, providing clever suppliers with opportunities to successfully build global customer bases.
Which is how and why Tungate Group Automotive Division, an arm of Cheadle-based Tungate Forms and Labels, came into being three years ago.
Now producing a significant part of its parent group's multi-million pound annual sales, it has been averaging 10 per cent growth per annum and, despite the current state of its client industry, expects to keep growing in the coming year.
Employing 75 people and selling its products world-wide, it is also a nominee for The Sentinel's UK Trade and Investment-sponsored international trade award.
Unlike many other labels, those used in automotive production are seen as vehicle parts and have to meet the same rigorous quality specifications, traceability standards and just-in-time delivery schedules as other components.
For some would-be suppliers that is all too much hassle, but Tungate's almost obsessive attention to detail and willingness to go several extra miles with exhaustive product approval testing has proved to be a cornerstone of its success.
Divisional manager Simon Wooldridge, pictured, said: "We are never satisfied with our own performance and constantly strive to surpass customer expectations, and it pays.
"When one customer relocated its UK production to Slovakia, we went after them and came up with ways to meet their new requirements. As a result we retained almost 70 per cent of that business."
That same determined, proactive approach has been winning friends and new business ever since. But it has not been all one way.
A reverse flow of ideas has seen the company import its client industry's lean manufacturing techniques into its own operation – reducing costs and lead-in times.
Mr Wooldridge said: "We are very proud of having recently received a letter of recognition from Toyota Europe for our cost reduction work in 2007 – such letters are only given to 10 of their suppliers annually.
"We have since been awarded the contract to supply Toyota Turkey with vehicle identification labelling for a new model, production of which starts next year."
That deal calls for a nil product failure rate to avoid 'line stops' – expensive breaks in production due to faulty components.
Many car part labels don't just identify the parts they are on. Some labels have additional functions, such as helping prevent wires chaffing together.
Others are also important parts of the huge and intricate traceability system – a plethora of barcoding enabling place, date and time of manufacture, and materials batches used, to be accurately tracked.
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