Case History: Profit and Service Quality Improvement
The Organization
Family owned distributor of commercial cleaning products and equipment.
The Situation
Deteriorating profits, flat revenues, and increasing price competition combined with poor internal communications and little team problem solving.
The Approach
The Company president recognized the need for improved organization and service, leading to the consulting engagement. During the initial 12 week period, the project focused on...
- Establishing the mission, values, objectives and ongoing Company strategy
- Collecting information on customer service requirements and competitor strengths
- Polling employees to identify significant "time wasters"
- Identifying organization and operating problems
Workshops were conducted on the TOTAL QUALITY MANAGEMENT ("TQM") process for the managers and an EXECUTIVE QUALITY COUNCIL was established to direct the improvement process for the Company. Specific improvement projects were established by the EQC with assistance of consultant and the President was coached in actions needed to support the improvement process.
Results
The management began communicating and working effectively on a team basis, developing and implementing important changes. Delivery performance was significantly improved and rush orders essentially eliminated. The number of suppliers and stocked items was significantly reduced and slow moving inventory analyzed to establish procedures to avoid buildup. The sales functions were reorganized and strategy established to differentiate the Company from competition through value added services.