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Releasing the brakes
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If evidence were required of the importance that dedication and focus have to a business, Knorr-Bremse would be the ideal case study. Fifteen years ago this was a company with multiple brands, a sprawling production base and little brand perception in the market. Sure, the truck manufacturers were probably aware of who it was, but the rest of us?
Fast-forward to the present and KnorrBremse is an exciting place to be. Worldwide sales now account for €3.1bn (f2.1bn), and the growth continues.
While Knorr-Bremsc promotes itself as a 'solutions provider', the core solution it provides is braking systems to the CV and rail sectors. There are other areas of the business — engine dampers, gear control mechanisms and 'wheel ends', for instance — hut the main activity concerns the CVs which are responsible for 60% of K-B's business, and have given the company the majority of its growth.
Growth plans Not a company to rest on its laurels, K-B is seeking further growth, both organic and through acquisitions, and currently has four joint ventures in China with two more in Russia.
In the UK, the change in its fortunes is equally impressive. Annual revenues are ill the region of f:45m, equating to a growth of 17% since 2002. K-B's UK operation is a substantial undertaking, comprising manufacturing (it is considered a niche high-quality producer in the Knorr-Bremse empire) and distribution.
"Our key mission is to reduce the total cost of ownership to our customers," says UK MD Simon Craddock. We do that by ensuring our products are reliable and durable, and by supporting those products in the market.
"In 2004 we completely restructured our distribution system — and while our competitors choose to concentrate their distribution centres outside the country, Knorr-Bremse invested heavily in UK facilities. It is extremely important to me that we stock our equipment close to our customers.
"The European market is booming," he adds. -If we were drawing from a central European system then we'd be competing with other territories for stock. By having our own stock of supplies, here in the UK, we can protect our customers from this and ensure better supply" The parts distribution operation has grown by 50% since 2004 to account for more than 60% of the UK business. With over 60 UK service centres and a further 62 aftermarket distributors, K-B's UK network is extensive: "It's all to ensure our products are supported in the market," Craddock explains.-We're aiming to have a network that is as extensive and as high in quality as the truck manufacturers', and I'm always looking at ways to develop the offer." On the product front. Knorr-Bremse is continuing to invest in research and design; the latest fruits of this include a second generation of its electronic braking control system, incorporating rollover stability protection as standard in a smaller unit with fewer components than the first generation. "This helps from an installation point of view and makes the product more reliable," says Craddock.
Data and diagnostics
ln combination with the new braking system, the trailer information module (TIM) is being upgraded to offer real-time data-logging,giving operators better management reporting of their trailer fleet. -TIM will log such measures as distance, load on the trailer, speed,ABS actuation and system faults," he adds.
In addi Lion, K-B is rolling out a new diagnostic platform for independent workshops: "From our braking system, we are able to offer workshops a diagnostic package across all makes. It's a PC-based system and will allow dealers to interrogate the system on the trailer to diagnose faults."
One of the biggest challenges facing Craddock's team and the other original equipment (OE) suppliers in their sector is the stream of spurious products coming into the market.These parts are invariably cheaper than the real thing but they're often sub-standard.
"We've started to see copy products now coming in from China offered at prices below the manufacturing cost of our own products," he says. "Closer examination of these products shows they simply cannot match the original parts for durability or reliability.
"We're running a number of training courses to inform the industry about the risks associated with fitting these components there are clearly liability issues for the people selling and distributing these parts if they fail." •