Sparex: From a simple pin to a worldwide business

This year, replacement parts firm Sparex celebrates 50 years in business. It is one of many after-market firms supplying component items and replacement parts for tractors and machinery.

While not dealing directly with the end user, Sparex-branded products are found in most agricultural machinery parts departments, making their way on to farms across the country.

Companies such as Sparex, Vapormatic, Bepco, QTP, Fastparts and McHugh components specialise is supplying replacement parts to the agricultural industry. In many instances, these firms offer a value alternative to OEM parts.

Companies like Sparex may now be the only option for new parts where a product or product line has ceased to be available. This in itself is an extremely valuable service.

Celebrating its 50th anniversary, Sparex was founded by Malcolm Brook in the UK in 1965. From a £200 loan investment, Mr Brook grew the business to a £1m turnover within a decade.

What put him on the road to success was the humble linchpin, having identified an opportunity in the market.

The sales of this single product were so successful that it allowed Sparex to develop new markets and expand its range. The linchpin (S.2) is still part of the Sparex range that now includes over 50,000 products.

Today, Sparex offers a comprehensive range of products, including accessories, wearing parts and tractor parts for all makes and models, supplying over 20,000 retailers in 80 countries.

According to the company, a key milestone was the launch in 1976 of the Agripak concept and customised showroom solutions for agricultural dealers.

Agripak was a new way of delivering spare parts in small plastic boxes readymade for sales display.

The accelerated growth during this time was also supported by the expansion of the business throughout Europe and beyond.

By 1985, Sparex already had offices in 10 countries covering Ireland, Britain, France, Belgium, Denmark, Holland, South Africa, New Zealand, Australia and the US.

The Irish office, based in Waterford, was established 36 years ago. It is run today by sales director John Laffan, who has been with the firm for 34 years.

In the 1980s, Sparex launched a full range of tractor parts and released its first catalogue of parts suitable for Massey Ferguson tractors. It also signed its first deal with Case and John Deere.

Sparex offices were progressively established in Germany, Austria, Spain, Mexico, Portugal, Canada and Poland.

In recent years, Sparex has invested in quality control management, warehousing and upgraded its logistical capabilities in Britain, France and Germany.

A technical centre of excellence has been built in Britain. Sparex claims this ensures that both new product development and quality management remain at the heart of the company.

Celebrating its 50th anniversary, Sparex toured Britain with five roadshows and also held one in Ireland.

The firm invited its retail customers to these roadshows and brought in-house product experts, direct supplier expertise plus the firm’s local sales representatives.

Managing director of the Sparex Group Jeremy Burgess was on hand to meet and speak to Irish customers in the Newpark Hotel, Kilkenny, recently. Jeremy has a long history of working for Massey Ferguson and AGCO, the latter of which now owns Sparex.

He said the global marketplace for tractors in 2013stood at around 575,000 tractors, excluding India and China. He explained that China and India are left out of his figures because Sparex does not have a presence there. He cited the example that the Indian tractor marketplace in the same sales period accounted for approximately 630,000 vehicles.

Sparex has 25 warehouses across the world, five global hubs, three quality sourcing centres and one technical centre.

The company also has its own manufacturing division, Spenco, which is based in Britain.

The company is now a multinational business with a turnover of $130m, providing spare parts for agricultural machinery in over 100 countries.

Jeremy attributes its success to the fact that there are 500 Sparex employees in the world and 130 of them are sales and technical specialists, who know exactly what the farmers in their country need.

Like so many firms, Sparex sources parts in India, China and Turkey. Jeremy said: “It’s a fact of life that everyone sources parts in those markets. But what everyone doesn’t do is have quality control. Purchasing and logistical people based in those countries look after our parts for quality and ensure they are correct before they are shipped. That’s what makes Sparex different and what makes our global footprint important.”

The Sparex warehouse in Britain is Ireland’s closest global hub, where there are over 50,000 lines of products. The Irish warehouse in Waterford carries over 25,000 lines of products.

To put the size of the Irish operation in perspective, Sparex sales director John Laffan said: “We would have between 800 and 900 active customers here in Ireland.”

Typical shipments out of Sparex in Waterford are around 150 per day on average and about 40,000 per year.

Irish stocks are topped up three times a week from Britain, explained John. “Also, anything that is new to us and that we don’t stock yet can be shipped in quite quickly.”

Looking after sales and shipping in Ireland are 17 staff members. During peak seasons, additional packing/shipping staff are taken on to cope with the extra demand.

Northern Irish, non-euro customers are looked after by a depot in Omagh.