Walter USA

Source: Manufacturing Digital

Date :5/8/2008 6:34:10 AM

Providing superior customer service has always been of concern to Walter USA, but with a number of innovative ideas, it has carved a unique niche in the market. Exec learns more

Written by Kellie K. Speed and Produced by Kristin Hurley

Companies looking to fulfill their machining needs no longer have to look any further than Walter, which now consists of three brands (Walter, Titex and Prototyp) forming one company that provides a full line of drilling, milling, turning and threading tools.

“We are a solutions company that helps customers with their manufacturing problems,” says Muff Tanriverdi, Walter USA’s president and chief executive officer. “We recently went through a merger. Customers were looking to decrease the number of their suppliers and reduce costs while optimizing processes, thus lowering production costs and improving performance. By merging, we provided major savings to the customer by offering one order, one shipment and one invoice. We are no longer three different companies. We merged to grow. We are now one company with three brands.”

The Walter Company, started in 1919, received its first carbide patents in 1926 and introduced the world’s first fully-automated grinding machine in 1953. “Dr. Walter formed the company making carbide tooling,” Tanriverdi says. “He had the patents on carbide and founded Walter Grinders to fabricate the tools. Around 1979, Waukesha Cutting Tools met with Walter and signed an agreement to distribute cutting tools in North America. They formed a partnership, which evolved into Walter acquiring Waukesha Cutting Tools in 1999.”

When the merger occurred, Tanriverdi was brought in to make for a smooth transition. “I came to the company in 2000 with the goal to ‘Walterize it’ and bring in a full tooling line,” says Tanriverdi. “We have become a full line solutions provider, manufacturing tools for milling, drilling, boring, threading, etc.”

Today, with well-known customer names on their roster such as Boeing, Caterpillar, John Deere and GM, the company is able to offer the Titex brand, which manufactures solid carbide drills and Prototyp, which manufactures threading and milling tools along with the parent company’s Walter Indexable tooling.

“Some of our growth drivers have been disciplined business processes, production technology and short lead time manufacturing supported by investment and acquisitions,” Tanriverdi says. “We invested €140 million over the last two years and hope by 2010 to be a billion-euro company.”

Employee satisfaction

Walter’s primary operations are in Canada and the United States - its main base in Waukesha, Wisconsin. Focusing on employee satisfaction has been paramount to the company’s overall success. “There are a number of employees who have been here for more than 25 years and I just went to a retirement for someone who had been with the company for 47 years,” he says. “The company has been in business since the 1900s so we have a long tradition of keeping key employees working with the company. We are proud of that tradition of keeping people with a great knowledge and skill set.”

The company also offers superior benefit plans to retain employees and keep them satisfied. “We have a company sponsored retirement plan that we offer to employees in addition to a 401(K) plan where each person is vested immediately,” Tanriverdi says. “We also offer continuous training through several programs, including a leadership training program that provides management skills training. We offer full reimbursement for education and since the company is worldwide, we offer employees the ability to transfer to the other locations.”

As a result, Walter has grown significantly over the years and it projects by 2010 that it will be a billion-dollar company. “There are opportunities that come with growth and we are a growing company,” he says. “We have grown 20 percent each year for the past five years, which has been explosive. Our annual company revenue is $100 million in just the Americas region and is continuously growing.”

Continuous improvement

Walter has an internal ordering/purchasing system known as Toolshop that allows users the ability to electronically choose the appropriate Walter, Titex and Prototyp items they need and purchase them directly online. Users have direct access to online stock availability and can easily place reorders as well. The order history function is helpful to track status information and product selections.

“We have internal programs for customer service driven by objectives and we have the matrix for utilization,” says Tanriverdi. “The company has a high-tech phone system available to minimize or even eliminate wait times and customers can fax orders or send them electronically. There is a software program in place that allows them to check product availability through a distributor or a specific price. Our company stands out with our technology in the cutting tools arena. We give our customers a solution and show them how to save costs. Our sales approach is to show savings using Walter tools versus the competition.”

Although there are many competitors in the industry, Walter has clearly established a prominent name and reputation for itself over the years.