Client

A leading manufacturer of an $8.4bn segment in the outdoor leisure products industry. Our client has more than 3,000 dealers and distributors in North America with more than 3,000 SKUs. Our client also has a national network of 21 manufacturing sites throughout the U.S. and Canada.

Challenge

  • Create a detailed vision (BluePRINTTM) for streamlining Order Entry and Processing and find savings in Customer Service and Engineering functions
  • Identify non-value added and redundant tasks
  • Establish metrics to measure individual perfirmance
  • Provide a roadmap of both Quick Wins and Long Term projects to meet the organization’s strategic goals
  • Complete the project and present findings to executive leadership within six weeks

Background

Through acquisition the company was experiencing rapid growth across several brands. The company asked EXL Consulting to analyze their order entry, customer service and design/ engineering processes. They estimated losses of more than $10mm annually due to lost time and sales, increasing turnaround time and product returns.

Solution

Through acquisition the company was experiencing rapid growth across several brands. The company asked EXL Consulting to analyze their order entry, customer service and design/ engineering processes. They estimated losses of more than $10mm annually due to lost time and sales, increasing turnaround time and product returns.

  • Four Quick Wins projects recapturing: $3.4MM in recurring costs over 4 years
  • Four Mid-TermWins projects recapturing: $9.6MM in 4 years

The BluePRINTTM provided insights to root causes:

  • Lack of data meant management could not measure em-ployee performance, identify cycle times or average handling times. EXL developed a 12-week Performance Management project to increase capacity and recover loss time by over 40%. Key deliverables included management dashboards and validated KPIs.
  • Poor Customer Communications lead customers to submit incomplete orders. EXL completed a Voice of Customer to educate and reach out to customers, the savings - $260,000 in one year alone
  • Non-Standardized processes in Order Processing, Customer Service and Engineering led to non-uniform product and service quality. EXL re-designed the processes and is projected to provide $2.5mm in savings and additional revenue opportunity.
  • Non-existent continuous improvement mechanism resulted in product warranties of over $4mm annually and contributed to customer at-trition with impact of $5 mm annually. EXL provided a detailed roadmap to institute a mechanism and identify problems in real time. It is estimated to improve the bottom line by $10mm annually.

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