Case Study - Ludlow Nut Company

The Ludlow Nut Company is not a food factory mass producing in huge volumes, but a small artisan producer of healthy food, using only the finest, natural ingredients. 

As well as producing a wide range of healthy food under its own product labels, the business provides luxury breakfast cereals, roasted & flavoured nuts, activated nuts and an extensive range of nut butters for customers who use their own branding.

This meant an added complication to its previous processes for its ten staff from its base in Foldgate Lane, Ludlow.

Helen contacted The Marches Growth Hub about digitising its systems and she was advised to get in touch with Made Smarter West Midlands.

That led to Barry Jones, Digital Transformation Specialist for Made Smarter in Shropshire, visiting Helen at their premises along with Denis Pelych from WMG at the University of Warwick, which is one of Made Smarter’s strategic partners.

Helen said: “I showed Barry and Denis around our premises and talked them through our processes.

“They helped with recommending various MRP providers to obtain quotes from and then sat in on the initial meetings with the suppliers and asked pertinent questions since they had a greater understanding of MRP systems than I did.

“That helped in the selection process and once we had decided which company we were going to go with, Barry and Denis attended quite a lot of the implementation meetings with us which was really helpful.”

Barry Jones said: “The Ludlow Nut Company is a perfect example of the kind of small businesses that Made Smarter West Midlands can make a real difference to their day-to-day operations by introducing a digital system which staff feel comfortable in using.

“They are now in a position where the MRP software is being used to its maximum to benefit the business and the initial hiccups have been overcome with the help of Made Smarter West Midlands and WMG.”

Helen and Bob applied for a £10,000 grant towards the purchase of a MRP software-based system which would help the Ludlow Nut Company with its production planning, scheduling, and inventory control.

“We wanted an end-to-end system to track our stock from the goods-in stage through to recipe production, packaging, and finally dispatch to our customers,” Helen said.

“Previously, we used to record quotes on spreadsheets and creating a large paper trail, ending with our accountancy system but nothing was joined-up.

“We wanted a system that would give us greater traceability of stock levels which is key to running the business smoothly.

“The importance of selecting the right vendor partner, not just the right software solution was really important because otherwise the outcome could have been very different.”

Denis said: “We helped the Ludlow Nut Company to understand the business risks associated with their previous approach to IT systems via a simple architecture diagram and an options and implications session.

“We coached their Project Manager, ran weekly meetings and then handed back to the Project Manager once they were feeling confident.”

The Ludlow Nut Company now has full transparency at every stage of the food process, from ensuring there is enough stock to make the requested products to dispatching orders across the UK.

Helen said: “I think we had got to the stage where we had become too big to maintain our efficiency through our previous system and that was the key for us. The worst thing is when you are about to start making a product and you realise you don’t have a particular ingredient because that causes lost time and re-shuffling other orders.

“The implementation programme started last June and we have been fully integrated since January because it was quite a lengthy process.

“It has been complicated by the fact we manufacture goods for other companies which added another level of complexity to the system.

“The new system is more efficient and joins up all the dots as well as having saved duplication of work and we’re really pleased with it.

“Applying for the funding was smooth with Barry’s help and receiving the grant has meant we have been able to afford the add-ons for the system.

“We have big display TV screens that show our production schedules but that’s a cost we wouldn’t have been able to afford without the grant and it has made a big difference having that particular kit.

“Having advice and people you know you can trust and rely on when making these big decisions is really important.”

Phase two of the implementation plan is going well and the Ludlow Nut Company has successfully introduced all the various elements of the MRP to improve its efficiencies.

Helen said: “Customer feedback is very important to every business and we place our customers at the heart of our business.

“Digitising our business is a fantastic step forward to continue to build on the gold stars we have received from the Guild of Fine Foods as well as our reputation with our clients whether they are on our doorstep in Ludlow or further afield.”