Case Study: Process Improvements

Electronic components distributor process improvements

CompassLead was called in to help reorganize a multi-million dollar electronic components distributor experiencing downsizing due to market shifts. The organization was looking to retrench its business in new growth markets, but struggled with the transition.

Challenge

The organization and systems could not accommodated explosive increase in individual customer order volume. Employees were working more overtime, yet falling further behind in processing and shipping orders. Customer order return rate had increased to over 7%. The organization required an increase in top line revenue and needed to grow capacity without incurring additional costs.

Approach

CompassLead assessed order flow and operational processes and diagnosed those that were problematic. Working with organizational management for proper approvals, CompassLead recommended, implemented and monitored procedural and reporting improvements. Under CompassLead’s direction, the organization eliminated 33% of its processing steps, reduced the use of internal forms by 17%, and implemented electronic processing using the organization’s current underutilized software package. CompassLead also documented the finalized process map for continuous improvement practices.

Results

After implementing CompassLead’s recommendations, the organization realized a 33% increase in top line revenues and errors and returns were reduced to .8%. There was no increase in the head count due to the improvements, which included a 33% reduction in processing steps and a 17% reduction in the number of order processing forms required.