Re-tooling for the Future

Background:
Our customer, a specialist automotive engineering and manufacturing concern, is a key supplier to the UK motorsport, hybrid and performance vehicles sector. They are also developing an exciting range of high-tech cycles. The business provides advanced solutions to the automotive industry though an integrated approach to customer requirements, adding their special expertise in the design, rapid prototyping, sample development and delivery of components.

The Requirement:
Automotive component design and manufacture is challenging – from engine management systems to regenerative braking technology, tolerances, JIT, it is quality that is the key requirement. Type-approval certification, the ability to produce the product in conformity specification, performance and marking requirements by legislation – all must be delivered in volume and in line with automotive manufacturer requirements demands the latest in CNC multi-axis machining equipment and the full range of Factory Management Systems. 

For our client, this means a capital investment budget of more than £3 million in 2018.

The Solution:
AFM solutions has provided 5-year facilities for this engineering business. As part of the facilities, we contact suppliers and agree payment terms, settling their invoices at each stage – deposits, build, software implementation and testing and, finally, delivery and commissioning at the factory site. 

The Benefits for the Supplier:

  • AFM Solutions' approach enabled suppliers to plan their cash needs 
  • AFM Solutions pays supplier invoices on delivery of each stage of the agreed machine project
  • We support all stakeholders – from the finance team to the operations director.

The Benefits for the Customer:

  • AFM Solutions deals with the cash, accounts payable and VAT management issues
  • Our 5-year finance spreads the cost over the life of the project
  • Repayments can be profiled to match the initial cash and P&L challenges of a re-tooling plan
  • We support all stakeholders – from the finance team to the operations director.