Briggs & Stratton introduced a business optimization program just over a year ago to increase production capacity for higher-margin commercial turf products, bring engine production closer to its customers, and better utilize its facilities to drive efficiencies. According to Briggs & Stratton, these actions, coupled with an ERP upgrade, are anticipated to yield pre-tax savings of $30 million to $35 million and set the foundation for continued profitable commercial growth.
“Over the last five years, we’ve successfully grown commercial sales by more than 70 percent, requiring us to evaluate all facets of our business to best support this growth,” said Todd Teske, Briggs & Stratton chairman, president and CEO. “In a short amount of time, Briggs & Stratton has displayed quick execution and substantial movement toward meeting the goals of the program, and is on pace to meet the expected pre-tax cost savings.”
Positioning product to serve customers more quickly and effectively
- Briggs & Stratton is moving production of its Vanguard V-Twin Small and Big Block engines from a joint venture partnership in Japan to its existing Statesboro, Ga., and Auburn, Ala., facilities in the United States. With 85 percent of Briggs & Stratton engines and products made in the U.S.A. of U.S. and global components, the Company is close to its customer base with faster production times and faster shipping.
- By consolidating a number of its smaller existing engine and product warehouses throughout the U.S. into two large warehouses in Germantown, Wis., and Auburn, Ala., Briggs & Stratton is increasing efficiencies to more effectively serve customers and provide a North American enterprise distribution footprint that supports its strategy and customers with optimal inventory and order delivery.
Investing in facilities for optimal growth
- Given the significant commercial sales growth over the past five years, Briggs & Stratton is expanding its Ferris mower production capacity into a new, modern facility in Sherrill, N.Y. This allows employees to more effectively produce commercial offerings.
Upgrading systems for streamlined operations
- At the core of the business is the company’s ERP system. Recognizing the need to be easier to do business with and streamline processes to be more efficient and work more effectively, Briggs & Stratton invested in upgrading its global ERP system, which was recently integrated into the business.