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Crest Leather is a vertically integrated business.
Vertical integration means a company owns and controls a number of its suppliers and distributors. This allows it to manage the entire production process, reduce costs, and improve efficiency. Only a few global leather producers within the upholstery industry can claim to be fully vertically integrated.
From the purchase of raw hides, processing, tanning and finishing, to our warehouse distribution facilities, we own and control the entire end-to-end supply-chain process.
Below are three key reasons why working with a vertically integrated business can be beneficial;
1) Improved Quality Control:
A major benefit of owning our own tanneries is the improved quality control throughout the process.
Quick Feedback and Fixes:
Daily contact with our tanneries allows us complete control over quality, leading to more effective adherence to standards and better overall results. It also allows us to quickly address any potential issues with any of our productions at source and in a timely way.
Custom Tanning:
This vertically integrated approach means that the tannery can slightly adjust their processes to meet specific needs. The customer could request a particular treatment or finish, ensuring a more consistent and better product for them.
We can easily collaborate with our tanneries to develop new leather products and finishes, resulting in unique and innovative offerings. This streamlines our new product development process and positions us as a leader in the industry.
Simplified Production:
Fewer external partners means greater quality control and a more a streamlined process,
2) Enhanced Transparency:
Having a vertically integrated business also gives better transparency of the supply chain – meaning that we know the origin of our raw materials and full accountability in how the products are developed and produced.
Transparent supply chains are becoming more important for the end consumer as well. A 2022 survey revealed that 67% of respondents prefer buying genuine leather over fake alternatives, citing longevity and durability as crucial reasons. Additionally, 55% of these respondents regarded genuine leather as a high-quality material, which influenced their purchasing decisions.
Governance:
At Crest, we provide customers with a QR code which shows the ESG compliance ratings, and the awarded certificates too.
3) Cost Efficiency and Streamlined Supply Chain:
Owning our tanneries enhances cost efficiency and streamlines the supply chain.
Lower Costs:
Removing ‘middlemen’ from the production process helps us remove ‘mark-up’ and reduce costs. This streamlined approach enables us to provide a cost effective product offering for our customers at the same time as maintaining product quality.
This vertically integrated approach, unusual in the upholstery leather tanning industry, is just one of the reasons Crest has developed a market leading approach