Godrej Securities Solutions, a division of Godrej & 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, jewelers, corporates, defense establishments, and retail consumers of home safes are some of its customers. In October 2010, the company adopted the Theory of Constraints (TOC) framework for revamping 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.
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 sales has also doubled in three years. The profitability has increased significantly, while ROCE has tripled.
Institution Business : On-time performance improved to more than 90%, while the production lead time reduced by over 50%. Lead-time to customers reduced by 50%, while variability in lead-time reduced seven times. 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 inventory reduced by more than 50% and finished goods stock reduced by 50%. Rate of new product introduction increased by 200%.
Retail Business: Availability of all items is 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.
Overall Result: Profitability has almost tripled.