CLIENT: Industrial Electronics Company.
An electronics manufacturer faced bankruptcy after losing money three years in a row. The major problem was that the information system was unable to extract critical information needed for decision-making. The client was losing control over the business because of excessive inventory and an unresponsive information system.
By reviewing all major business processes, the company could regain control of its supply chain, inventory investment and indirect labour expenses. If costs could be reduced substantially and a responsive business information system installed, the business would not only survive but prosper.
Atticus proposed six major deliverables:
- Re-engineered the customer order cycle process, reducing it 30% to an average of four weeks.
- Identify and remove 25% of obsolete inventory and reduced on-hand inventory by 15%.
- Outsourced upgrading the enterprise resource planning software system to access decision-making information, added purchasing vendor measurements and improved production scheduling.
- Reduce product lines 85% to 450 from 3000 items by eliminating money losers and low or no growth items.
- Develop an E-business catalogue.
- Implement a Customer Relationship Management (CRM) system.
By meeting the deliverables, the client saw improvements that went directly to the bottom line. The business went from barely surviving to a thriving enterprise. Details include:
- Improving customer service response to order demand and increased on time deliveries.
- Customer contacts increased by 30% and sales increased by 8%.
- The CRM system managed prospects and reduced reporting and updating data by 20%.
- Duplicate data entry was eliminated, reducing manufacturing rework caused by errors and allowing the company to reduce its manufacturing support staff by two.
- Streamlining financial procedures in accounts receivable and payable were established and put in place.