Insight

In 2022 Fabory Group celebrates its 75^th anniversary as a well rounded fastener specialist, growing from a family-based business stocking items literally under the staircase in 1947 to one that offers a broad fastener product portfolio, technology-enabled supply chain solutions, coupled with technical expertise, application knowledge and engineering capabilities.

For Fabory the last ten years have been dynamic in its development, with the company focusing on digitisation across the customer journey, as well as incorporating state of the art systems, robotic automation and productivity tools. This development has also coincided with changes in ownership. “A major factor in our progress was the acquisition of Fabory by W.W Grainger Inc in 2011, which provided stability for the business and enabled us to make some big investments, especially in the digitalisation of the organisation,” states Francisco Terol, CEO at Fabory. “It also saw us extend our portfolio of products to MRO categories, whilst Fabory was the Grainger centre of expertise regarding fasteners and fastener sourcing.”

In 2020 Fabory was acquired from Grainger by Torqx Capital Partners – a private equity firm from the Netherlands. “Since the acquisition, Torqx has supported us in further strengthening our position as a specialist distributor in fasteners with a strong focus on organic growth supported by acquisitions,” explains Francisco. “Fabory builds from an extremely strong heritage and expertise in providing high-quality fastening solutions. There we make the difference in accelerating our customers’ success with our knowledgeable and dedicated team.”

Fabory’s strategy over the last two years has been to become a ‘true’ fastener specialist once again, which involved adding the right people, with the right knowledge, to the business in support of the strategy. “We have invested in the Quality & Engineering team as well as in state of the art measurement and analysis equipment. We also rebranded and revamped our Logic supply chain solutions, deploying innovations from adjacent industries. In parallel, we have strengthened the Product Management team and are taking a segmented approach in our fastener range expansions,” points out Francisco. “Our commitment is underlined by the historic tagline ‘Masters in Fasteners’, which the company has been using for decades and will continue to be the base for our strategy going forward.”

Francisco adds: “The reason customers come to Fabory is for our industry acumen and our fastener application expertise, a quality that requires and receives continuous development. It is one of the key factors that allows us to stand out, especially in the OEM sector and with large MRO customers.”

The strong relationship with its customers and suppliers has been crucial over the past two years, given the turbulent market dynamics. “Next to managing the impact of the Covid-19 pandemic, and the challenges in global supply, we were focused on proactively handling the implications regarding possible anti-dumping duties threatening the European industry. Our long-lasting relationships with suppliers across the world have enabled us to redirect and spread our volumes and keep our availability up to the required levels.”

Francisco continues: “The Fabory team proved up for the challenge! We are quite satisfied with the way we have been able to support our customers in these unparalleled circumstances. Factors such as transportation costs and scarcity in raw materials were impacting not just the fastener market. Thanks to our partnerships and our pro-active team members, who take smart risks and continuously seek  improvement, we’ve been able to resolve most issues.”

Digitalisation is now

Alongside refocusing the business on fasteners, a key area Fabory has also looked to develop is its digital capabilities. “Digitalisation is now!” states Francisco. “Digital integration with customers is essential – not only from a purchase or pay perspective, but also to create customer intimacy. We’re partnering closely with our customers to provide localised insights into stock levels and replenishments linked to consumption levels and demand fluctuations. Securing process continuation for our customers is paramount and we are able to provide these insights in ‘real time’ linked to our technology enabled Logic solutions.” Francisco adds: “It’s a win-win situation, we create peace of mind for our customers and we increase our ability to forecast and plan accordingly.”

The growth of the digital platform was the silver lining of the Covid-19 Cloud. “It has become increasingly important in the way we work. Not only in providing customers with information – historical orders, frequency of orders, certificates, etc – but also in how we are communicating with them,” mentions Francisco. “Our digital platform is becoming the communications tool of choice over the phone or email. The quick, direct, response is clearly appreciated and I can only see this growing in the future.”

Growing the Fabory footprint

Next to fortifying Fabory’s fastener base, Fabory has also looked to acquire fastener companies that enable it to grow its footprint in countries it is already active. “Over the last six months we have acquired KEBEK Group, which saw us build a leading position in the broader central eastern European region. In addition, we have acquired the fastener division of Importinox, which strengthened our position in the Portuguese and broader Iberia region.”

 “Fabory has been involved with the Czech market for over 25 years, but with the addition of KEBEK we have a stronger market position, whilst also becoming a market leader in Slovakia and reinforcing our position in Hungary. Secondly, the capabilities of the KEBEK Group include in-house production capabilities and automated kitting facilities. Its customer portfolio is also complementary to Fabory’s, resulting into a well balanced mix of OEM and MRO type customers.”

New fully automated warehouse

In 1997 Fabory’s mini-load warehouse was a revelation – a fully automated warehouse operated by 18 cranes housing 281,000 module locations. At the age of 25 the mini-load has seen its share of enhancements adding to its capabilities and is now joined by a larger sibling. Fabory is investing in the infrastructure of the organisation – including a fully automated warehouse expansion to its central warehouse in Tilburg, the Netherlands. “The new warehouse is key for the future evolution of Fabory, it will be directly linked to our automated mini-load picking warehouse. The Still technology will enable us to further improve our efficiency and product availability. This investment is coupled with new storage systems, as well as robotisation,” points out Francisco. “For our customers it will mean that Fabory is ready for growth and can continue to support their evolving demands – for example for smaller packaging and complex kitting.”

Celebrating the past and future

It is clear that Fabory has ambitious plans for the future, but it is also keen to mark what is a significant milestone anniversary. “We are proud of our heritage and we are keen to mark our 75th anniversary for our team members and customers,” concludes Francisco. “This is a key occasion to celebrate our accomplishments and we look forward to the opportunities that lie ahead as a business that is a true ‘Master in Fasteners’.”