Godrej Security Solutions

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Godrej Interio's NPD Transformation: Reduced development Time by 20% and achieved 75% on-time Launches!

Godrej Interio Healthcare

Bahasa View the top management of Godrej Interio, a business unit of Godrej & Boyce Mfg. Co. Ltd., speak about how they increased sales by 35% and doubled their market share in the healthcare business.  The biggest challenge here was that, for healthcare furniture, the business development process required multiple interactions with different stakeholders in a medical facility. Since, as in the case of most B-B environments, salespeople were in constant conflict between using their available bandwidth to service current orders and getting new orders, developing new accounts was mostly forced to take a backseat. However, the company was able to resolve this conflict and released capacity from the existing team itself for business development.

Godrej Interio Healthcare | Unlocking sales capacity

View the top management of Godrej Interio, a business unit of Godrej & Boyce Mfg. Co. Ltd., speak about how they increased sales by 35% and doubled their market share in the healthcare business.  The biggest challenge here was that, for healthcare furniture, the business development process required multiple interactions with different stakeholders in a medical facility. Since, as in the case of most B-B environments, salespeople were in constant conflict between using their available bandwidth to service current orders and getting new orders, developing new accounts was mostly forced to take a backseat. However, the company was able to resolve this conflict and released capacity from the existing team itself for business development.

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Vector has developed bespoke solutions for equipment manufacturing or custom manufacturing companies to help them identify and address constraints in operations, sales, spares &amp; services, or new product development that limit consistent sales and profit growth.&nbsp;Working with companies like Laxmi Machine Works (LMW), Godrej Material Handling, RPG Raychem, Kirloskar Oil Engines Ltd. Bajaj Electricals (Luminaries Division), amongst many others, Vector has helped clients bring about excellence in equipment delivery, turbo-charge their sales &amp; business development efforts and set new benchmarks in after-sales services.&nbsp;

An equipment manufacturing or custom manufacturing company’s ability to grow its sales and profits consistently is limited by constraints in the following areas like Operations, Sales, Spares and Services and New Product Development:

Consulting Services for Equipment Manufacturing Companies

Analyses of top custom manufacturing companies, including manufacturers of capital goods and custom manufacturers of machinery and equipment, which design a product and make to order, show that only a handful have realized healthy sales, profits & ROI in the last decade.

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Equipment Manufacturing BA

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Equipment Manufacturing

India's largest lift truck maker slashed manufacturing lead time by 33% and increased export output by 54%

Godrej Material Handling

GODREJ-MHE, India's largest lift truck Manufacturer, adopted Theory of Constraints framework with the help of Vector Consulting Group to revamp its operations to enable it to better meet customer expectations. The company discusses this journey

Godrej Material Handling Equipment | Agile supply chain enabled by TOC

Among other benefits, the company gained a 25% jump in overall sales and a massive 100% increase in dealer network sales.

Godrej Storage Solutions

On-time delivery enhanced to over 85%  in this multi-project environment.

Godrej Tooling

Flow Management in projects helped the company achieve a massive 380% increase in execution-based billing and >100% growth in profit margins.

Godrej Electricals & Electronics Division

Godrej Electricals & Electronics | Rapid execution of infrastructure projects

Vector’s Engineering &amp; Construction consulting practice, offers tailored solutions for Engineering, Procurement and Construction (EPC) companies, enabling them to identify and address constraints in project execution and operations that may hinder their sales growth and profitability.&nbsp;By implementing a unique Flow Management approach in its consulting assignments for construction projects, Vector has enabled clients such as Skipper Ltd., Bajaj Electricals (Engineering &amp; Projects Division), Godrej (Electricals &amp; Electronics Division), Tata BlueScope Steel Ltd., and KEI Industries Ltd. to complete projects ahead of schedule while increasing the number of projects executed within the company's allocated operating expenses.

An Engineering and Construction (EPC) company’s ability to grow and sustain sales and profits is limited by constraints in Project Management and Sales.

Consulting Services for Engineering and Construction Businesses

The growth of project organizations dealing with turnkey projects involving engineering, procurement and site construction has slowed down despite healthy demand because they operate in a highly uncertain environment (ROW issues, bureaucratic hurdles, etc.) Find out how companies can not only manage but also flourish in spite of these challenges.

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Engineering & Construction

Godrej Indonesia implemented 'pull-based' replenishment with their largest modern trade partner; their results: inventory reduced by a massive 41% while maintaining a consistent product availability of 98%-100%.

Godrej Megasari

Vector’s Consumer Goods &amp; Retail consulting practice offers expertise to consumer-packaged goods (CPG) companies involved in the distribution and retail of their products. These strategies help expand market range and reach, create market pull through influencers, and enhance overall supply chain and distribution efficiencies.&nbsp;With path-breaking solutions in Sales &amp; Distribution, New Product Development, Inventory Planning, and CRM programs, Vector has delivered significant business results for companies such as Bajaj Electricals (Consumer Products), VIP Industries Ltd., Godrej Interio, Polycab, Pidilite, Godrej Security Solutions, and many more.

Organizations producing, distributing, and making products available at retail points can be consumer goods companies or consumer packaged goods companies (CPG). Such companies could develop a constraint in areas like Internal Operations and Distribution, External Distribution, Sales Bandwidth, Retail Operations and New Product Development.

Consumer Goods & Retail Consulting Services

Much as they may wish otherwise, most Indian consumer good companies find that they have no consistent “Reach” into almost 65% of the country’s population (especially in rural, rur-ban areas) since they believe that this spread out population would be ‘cost inefficient’ to service.

Consumer Goods & Retail

This leading custom home kitchen solutions brand, revamped its manufacturing and distribution, improved its OTIF to 90%, and had a strong 25% Y-o-Y growth in its order book.

Godrej Interio - Home Kitchens

Until recently the company was struggling to complete projects on time but within one year of TOC implementation, lead times crashed

Godrej Interio - Institutional Business

Godrej Interio | Transforming sales and business development

Godrej Interio's game-changing shift in R&D using Rapid Flow R&D Solution to reduce lead times resulted in a staggering 111% increase in new product launches.

Godrej Interio - New product initiatives

Godrej Interio (NPD) | Enabling rapid new product development

Godrej Interio's service division transformed Spares & Services operations; they improved service levels without increasing fixed costs and reduced consumer complaints by 55%.

Godrej Interio - Service and Spares

Godrej Interio's service division transformed spares & services operations; they improved service levels without increasing fixed costs and reduced consumer complaints by 55%.

Godrej Interio’s B2B operational revamp: implementing Complete Order Execution (COE) increased OTIF delivery from 40% to 85%+, unlocked 30% sales team bandwidth, and delivered 46% revenue growth.

Consumer Goods & Retail Case Study |Godrej Interio

Godrej Interio

Godrej Securities Solutions, a division of Godrej &amp; Boyce, is a market leader in the business of providing physical security products. Godrej Securities Solutions is a pioneer in providing security products such as safes, strong-room doors, safe deposit lockers, and record protection equipment, premises security solutions, home safes, and marine solutions. Banks, NBFCs, jewellers, corporates, defence establishments, and retail consumers of home safes are some of its customers. In October 2010, the company revamped the supply chain of its Physical Securities Business with the objective of improving on-time delivery performance, reducing lead-time, and enhancing the availability.The project was also expected to have a significant impact on the bottom line of the division.&nbsp;&nbsp;&nbsp;Results achieved within two years of implementation are as given below. In the first two years, the profits increased by three times, and has quadrupled in the third year. The <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/research-and-publication/articles/reliability-of-delivery-brand-positioning-opportunity-for-custom-manufacturing-organizations/">sales </a>has also doubled in three years. The profitability has increased significantly, while <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/industries/consumer-goods-retail/">ROCE</a> has tripled.&nbsp;&nbsp;&nbsp;Institution Business: On-time performance improved to &gt;90%, while the production lead time reduced by over 50%. Lead-time to customers reduced by 50%, while variability in lead-time reduced 7X. Output in the plant almost tripled, and this has been achieved with significant reduction in overtime and with the least addition of manpower. Work-in-progress <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/research-and-publication/articles/from-inventory-turns-to-norm-turns/">inventory</a> reduced by &gt;50% and finished goods stock reduced by 50%. Rate of new product introduction increased by 200%.&nbsp;&nbsp;&nbsp;Retail Business: Availability of all items moved up in the range of 90%. Number of distributors have almost tripled, along with doubling of range at the distributor. Number of retailers increased four times, along with doubling of range at the retailer.&nbsp;&nbsp;&nbsp;Overall Result: Profitability went up by almost 4X.&nbsp;<figure class="image"><img style="aspect-ratio:882/883;" src="https://web-assets.vectorconsulting.in/storage/editor_uploads//image-1719852920_1777025569.png" width="882" height="883"></figure>

Godrej Securities Solutions, a division of Godrej &amp; Boyce, is a market leader in the business of providing physical security products. Godrej Securities Solutions is a pioneer in providing security products such as safes, strong-room doors, safe deposit lockers, and record protection equipment, premises security solutions, home safes, and marine solutions. Banks, NBFCs, jewellers, corporates, defence establishments, and retail consumers of home safes are some of its customers. In October 2010, the company revamped the supply chain of its Physical Securities Business with the objective of improving on-time delivery performance, reducing lead-time, and enhancing the availability.The project was also expected to have a significant impact on the bottom line of the division.&nbsp;&nbsp;&nbsp;Results achieved within two years of implementation are as given below. In the first two years, the profits increased by three times, and has quadrupled in the third year. The <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/research-and-publication/articles/reliability-of-delivery-brand-positioning-opportunity-for-custom-manufacturing-organizations/">sales </a>has also doubled in three years. The profitability has increased significantly, while <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/industries/consumer-goods-retail/">ROCE</a> has tripled.&nbsp;&nbsp;&nbsp;Institution Business: On-time performance improved to &gt;90%, while the production lead time reduced by over 50%. Lead-time to customers reduced by 50%, while variability in lead-time reduced 7X. Output in the plant almost tripled, and this has been achieved with significant reduction in overtime and with the least addition of manpower. Work-in-progress <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/research-and-publication/articles/from-inventory-turns-to-norm-turns/">inventory</a> reduced by &gt;50% and finished goods stock reduced by 50%. Rate of new product introduction increased by 200%.&nbsp;&nbsp;&nbsp;Retail Business: Availability of all items moved up in the range of 90%. Number of distributors have almost tripled, along with doubling of range at the distributor. Number of retailers increased four times, along with doubling of range at the retailer.&nbsp;&nbsp;&nbsp;Overall Result: Profitability went up by almost 4X.&nbsp;<figure class="image"><img style="aspect-ratio:882/883;" src="https://web-assets.vectorconsulting.in/storage/editor_uploads//image-1719852920_1777025559.png" width="882" height="883"></figure>

A: We provide physical security solutions (such as safes, lockers, strong room doors) for banks, institutions and retail. These products require assembly of more than 50 components. Some of these are made in-house, the rest are sourced from suppliers. We used to have significant desynchronization of these components at assembly leading to loss of capacity.

In 2010, we started the implementation of Theory of Constraints processes by partnering with Vector Consulting Group. After deploying the flow concepts of TOC, synchronization of these components at assembly improved dramatically. We started achieving the record output almost every day of the month.

Moreover, fire-fighting reduced significantly. This released the bandwidth of management to focus on improvements in the manufacturing line set-ups and working on capacity release projects that further increased output.

Q: What actions were taken to improve output from the plant?

A: Earlier we always thought higher WIP leads to higher output. We realized that this is not correct. One of the biggest paradigm changes we implemented is the system of pull, where inventory was pulled into the system based on the daily gap in a pre-defined WIP level, which was set at half of the previous levels. The lower WIP ensured focus on fewer orders, thus increasing flow.

Q: What were the major paradigm shifts for you and your managers?

A: The biggest challenge was to change the established mindset of managers to the new way of working – moving from monthly to daily planning, aligning production to working on sales orders rather than focusing on local output. When people saw dramatic improvements in inventory and output in a very short-time, the initial scepticism gave way to infectious enthusiasm.

Q: What challenges did you face in implementation? How did you align the various stakeholders to the new change?

Learn how Vector Consulting helped Godrej Security Solutions quadruple profits, double sales, and improve on-time delivery by revamping their supply chain using TOC principles.