Spare parts are the crux of any machinery business. In 1992, there was no entity globally that was manufacturing spare parts that would fit into and work on other original equipment manufacturer’s machines. Blumaq began with this niche then and now has a global presence in 15 countries, with 21 branches around the world besides 11 branches in its home country Spain. Plant & Equipment takes a closer look at the company’s manufacturing process and its service strategy to its customers.
Blumaq has a unique business model – manufacturing original spare parts that work in a variety of heavy equipment machines belonging to brands such as Caterpillar, Komatsu, Volvo, Cummins among others.
Back in 1992, when the company began operations, the vision was to create an alternative brand of spare parts for the main brands of earthmoving, construction, and mining machinery on the market with a quality equal to that of the original brand’s components.
The company’s focus when it began was only the market in Spain, however, once the products caught the attention of the Spanish businesses and word spread about the quality (matching those of the original equipment manufacturers) and price of the spares being lower than the branded ones, then the demand picked up for Blumaq, requiring the company to grow organically within the country and beyond its borders.
The technique
Although the company began with a goal of capturing only the Spanish market share, global demand soared as the spare parts were of good quality and economical, were readily available and came with a sound customer service plan.
“Before we enter a market, there’s a lot of backend planning done for our business to succeed. We research the demand, create a value proposition for potential clients, get the right kind of space we need for housing the spare parts to ensure continuity of supply and to be able to repair and maintain the spares for our customers and provide them with uninterrupted service,” says Juan Manuel Buils, Marketing and Communications Manager at Blumaq.
Quality is top of the agenda at Blumaq and is provided at the most affordable price. “The price point of our products is lower than many original brands because OEMs have a huge infrastructure to take care of and the operations of which require a cost that must be passed on to each spare part. That is not to say that our spares are cheaper than our competition (which are not OEMs but other companies that are now a part of this niche business idea), they are not because our quality is much higher,” continues Buils.
The manufacturing environment
Blumaq has a technical centre which develops new products, creates the designs and models of the parts to be developed. The designs are manufactured based on a mold, which is collected in 3D by scanning systems, such as a 3D handheld scanner. These models are then unscrambled in terms of design and manufacturing technique and sent debugged to the manufacturing department after the collection of samples. This is how the first prototype of a new spare is developed.
Blumaq’s sales and purchasing departments identify new market requirements. By using sophisticated systems for calculating the forecast and rotation of materials by application, they can determine consumption indicators, which means Blumaq can calculate which parts are consumed more in each country. “Our teams also identify the reasons behind these consumption volumes, which enables us to anticipate consumption and develop new references,” adds Buils.
The spare parts are manufactured through a reverse engineering method using technology to obtain the basic design of a part, measuring the components in the same percentages as the number to be manufactured. This data is shared with the manufacturing department. The technical center is then responsible for overseeing the development of each spare part individually, thus creating a compatible unit of exceptional quality. Currently, Blumaq manufactures 100,000 different spares including – cab components, chassis, filters, hydraulics, high wear items, gaskets and seals, engines, maintenance products, electrical parts among numerous others.
The company invests heavily in its research and development, acquiring new facilities, in the development of new references, stock, and storage. “For Blumaq it is very important to be close to our customers by offering the largest stock and maximum quality assurance, therefore investment in new references, in machines of the highest technology for our technical department and acquiring new warehouses globally, is a key factor to differentiate ourselves from our competition,” continues Buils.
The customer journey
Once Blumaq’s sales department receives inquiries about specific spares, the team consults with Blumaq’s VIP e-commerce team to ensure availability of the product. Then the quotation is created followed by the reservation of the parts. Once the purchase order is received, the order preparation begins.
“Our customers can choose between direct shipment, urgent or ordinary shipment,” says Buils. And then the order is shipped.
Looking ahead
The year has started well for the company. “We continue to witness increasing sales in the United States, South Africa, and Namibia, where the growth is exponential. Our new branches in Indonesia and Kazakhstan are indicating surprising numbers given the fact that they have only recently opened,” adds Buils.
Blumaq has also diversified into the production of oil, diesel, and lubricants. “Blumoil and BQ Diesel, are sub-brands of Blumaq. Blumoil, is a brand under which we produce a wide range of lubricants and products for the maintenance of machinery and BQ Diesel is responsible for all components related to engine assemblies, crankshafts, cylinder heads, long and short blocks, pistons, valves, overhaul kits. In this way the segmentation and specialization in these product families is much greater, we can devote much more effort to perfecting both in sales and in the creation of specific products for these sub-brands,” concludes Buils.
