Transformation for Electrical Trading Industry
This assignment focused on streamlining their sales & marketing activities with an aim to cut down enquiry to order turnaround time, improve order conversion ratios and overall productivity of the sales & marketing department.
SSA undertook a complete end-to-end study of the value stream with an aim to unearth entrenched processes and practices that contributed to “waste” and complexity. This helped to develop and deploy the “future state”.
Complete restructuring of sales & marketing function. Entire order fulfillment process in-tune with customer segment and demand patterns. Significant reduction in order fulfilment lead time and improvement in customer service levels.
Situation – deep dive
ABC Ltd (name changed to protect confidentiality) is a leading manufacturer and distributor of a range of electric & lighting products primarily aimed at non-retail customers and contractors executing large projects. This assignment focused on streamlining their sales & marketing activities with an aim to cut down enquiry to order turnaround time, improve order conversion ratios and overall productivity of the sales & marketing department. This project focused on:
- Enable the Sales & Marketing Department to be more efficient and responsive
- Study the workflow in Marketing function and convert it into “Lean Flow system”.
- Efficiency improvements as applicable to enhance throughput.
Actions Taken – deep dive
The first stage of the transformation journey focused on tackling complexities and therefore streamlining the Project Marketing & Sales functions. the activities included an intense 2-Day workshop on ‘Lean in Transactional Systems’ followed by a detailed discussion over inter-& intra-departmental challenges with respect to delivering value to customers. The discussions centred on the current state processes, their deficiencies in delivering value as promised to customers and the steps that need to be taken in re-designing the system.
- The Diagnose Phase (D1) followed next. In order for diagnosis to be accurate, SSA mapped an end-to-end Value Chain and plotted a Spaghetti Diagram that threw light on hidden, redundant movements of information among processes. Besides, the Voice of Customer & the respective Critical to Quality pointers were gathered to further aid the diagnosis. The crux of the Value Stream Mapping exercise was to surface internal challenges & determine improvement areas with appropriate KPIs to quantify the pain.
- In the Design Phase (D2), SSA charted a Future State Value Stream Map, including several sub-processes as per their business objective; for instance the product families were grouped as Runner / Repeated / Stranger based on demand patters. Appropriate order fulfilment practices were put in place in tune with demand patterns. Dashboards were created for key processes, which eased the monitoring of important KPIs. Meanwhile, SSA is engaged in analysis & review of the Organization structure, Time & Motion Study & Capacity / Capability Assessment.
Results – deep dive
- The Entire Marketing Process has been aligned with the Future State Value Stream activities.
- The New Marketing team Organisation structure has been developed in consultation with ABC’s Leadership team which is aligned based on Product groups.
- This project heled segue to future improvement areas coveting supply chain and manufacturing activities, where further synergies were derived.