We chat with Heath Nunnemacher, VP of Global Electronics Sourcing at TTI, about how the previous ‘spaghetti diagram’ of partners was streamlined into an efficient, effective procurement function
Techtronic Industries (TTI) is among the world’s largest manufacturers of mostly cordless power tools, outdoor power equipment, and floorcare products for both professional users and do-it-yourself (DIY) consumers. It houses a number of specialised brands, including household names such as Milwaukee Tool, Ryobi, and Hoover. They provide essential tools and solutions for home improvement, commercial maintenance, construction, and infrastructure industries. A global business, TTI’s tools are used by contractors in mechanical, electrical, and plumbing services, as well as other trade professionals all over the world, creating and maintaining the backbone of functioning homes, buildings and businesses.
TTI’s growth has been extraordinary – 13 years of consecutive double-digit gross margin improvement, in fact. In 2021, the company set a new revenue growth record just shy of 35%, more than twice that of its closest global competitor. A significant driver of that growth is a strategic focus on disrupting industries through leadership in cordless technology. To do so, it requires advanced electronics and collaboration with the most innovative and biggest players in the industry. But with the chip shortage crisis looming on the horizon in late 2020, the organisation found itself challenged by a severe lack of visibility in the electronics procurement function. Enter Heath Nunnemacher, the man charged with transforming electronics procurement for the overall betterment of the business.
Nunnemacher is the Vice President of Global Electronics Sourcing, the team that supports the global supply continuity of electronic components across all of TTI’s product segments. He is responsible for strategic development and tactical execution, overseeing all relationships with manufacturers and distributors in the electronics supply chain. With a background across product marketing, purchasing, engineering, and quality assurance functions in the automotive, high-tech, and now power tool industries, Nunnemacher had the experience to begin tackling a major overhaul of TTI’s electronics procurement operations starting in 2020.