Engineering SME teams up with academics to service the circular economy

Alphadrive was established 10 years ago as a traditional precision engineering business selling industrial supplies to local scrap yards. It soon spotted an opportunity to help customers with their recycling by refurbishing shredders and gradually explored new ways of supporting the circular economy. 

Alphadrive’s commercial director, Stuart Hill, enrolled on the SME Partnership programme back in February, which is part funded by the European Regional Development Fund. The programme targets businesses trading in the Black Country, Birmingham and Solihull LEP regions and is designed to help businesses to become more competitive by embracing servitisation - the organisational transformation of manufacturing companies to compete through advanced services.

For Alphadrive, this involves tapping into the latest academic research, identifying the company’s value proposition and developing an advanced services offer which is designed around the needs of its customers. 

Over the last few years, Alphadrive has developed a reputation for renovating old recycling equipment and providing customers with custom-designed shredders at a fraction of the cost of new ones. In 2016 it launched its own Toro Shredders brand. Engineers retrofitted an old piece of machinery, creating a hybrid powered shredder with power generation moving from being noisy and polluting diesel powered to running on hybrid power. The 30-tonne machine has significantly reduced running costs and noise levels.

Alphadrive’s team also developed a innovative “universal shear” which can be flipped to shred a range of materials with one machine. Customers are then able to diversify without acquiring a new machine and can switch easily from recycling mattresses to tyres, plastics to wooden pallets. 

Other features include GPS/wi-fi technology to enable remote monitoring and a redesigned hopper to increase storage capacity. Customers can fully customise their shredder design rather than having to buy off-the-shelf equipment which rarely meets all their needs.

Alphadrive’s Commercial Director, Stuart Hill, says: “Servitisation is just another way of adding value. Our relationship with customers isn’t simply transactional and based around selling products. We get to know their business and design bespoke solutions. That might be re-engineering a redundant piece of machinery or helping design a new recycling process.”

Stuart has regular meetings with his business school mentor which focus on understanding the strategic steps to servitisation and spends the rest of his time applying them in his day-to-day work. The business recently launched a specific Alphadrive Design & Consultancy brand and is continually developing new service offers.

Since 2012, the Advanced Services Group has supported over 200 companies like Alphadrive servitise their operation through academic engagement, business model innovation and the adoption of new technology. Financial data from participating companies indicates that shifting to a servitised model led to combined growth of £30 million.

“We would highly recommend that other businesses take advantage of the programme”, says Stuart. “All it costs is your time and effort. Success depends on having a different mindset, being prepared to listen to new ideas and put them into practice.” 

https://www.advancedservicesgroup.co.uk/