Case Study 3 - Spa Products Company

Case Study 3 - Spa Products Company

The Problem:

Formed in the 70's this family owned business had made the shareholders a good return for many years and had grown slowly to a turnover exceeding $8m per year. Their systems were old and labour intensive but, (whilst they were not realising their full capacity or potential for growth, nor were they maximising profit), they were reasonably comfortable.

Then suddenly they were presented with a huge opportunity to grow, not by small controllable measures but all in one big rush. Their products were based on ancient remedies, tonics and body treatments and whilst they were expensive they are really beneficial to use. Not fully appreciating the ramifications they had decided to tender for supplying their Products to a major international hotel chain and surprise surprise they won the contract.

Over night their systems were inadequate, too many mistakes were being made due to manual data entry, stock shortages due to orders for replacement not being processed when necessary, product returns due to incorrect preparation et al. Something had to change and quickly.

They needed an automated system and that's what SS&B do best:

Put the whole system on-line, automate everything, report everything. Give the client access to their stock, BOM and production reports & let them help in managing the process. Transparency was the key. 

Take the human out of the machines jobs, (monitoring recipes, mixing the correct quantities of chemicals), give the humans up to the minute information, in an easy to read format, tailored to their specific portfolio, to enable them to make informed decisions and help manage the company instead of just being employed by it.

The Results:

Almost a 100% reversal in the number of genuine mistakes made. Product deliveries arriving on time, with the correct contents. 

Huge improvements in customer relations by trusting them with web access to their section of the warehouse and sharing control over the outcomes. A proactive approach enabling them to advise of adjustments required to support future marketing initiatives.

More with less, knowledge is power, efficiency through closed systems (i.e. self checking), Vastly improved Quality Control because thats what systems are for. Vastly improved decision making because that what humans are for. Know what stock you have and how much of it you have and where it is, at a glance.

Knowing this you can relax, plan better, analyse past trends to forecast future trends and know what you need when.  Giving you the confidence to eliminate that safety buffer of extra you have always held and use that (free) money to develop your business. 

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2011-06-22 12:37:10
Take the humans out of the machines jobs, they do it faster & better with fewer mistakes. Give the humans up to the minute information, in an easy to read format, tailored to their specific portfolio,thus empowering them to make informed decisions and help manage the company instead of just being employed by it. Maximise the machines potential and the people's morale.