About this Presentation
This presentation explains how a manufacturing company, Godrej Locks Division, doubled its profits while looking at dismal economic times. It is organized into five sections: A background & compelling reason; improving business performance; delivering competitive-edge offers; exploiting constraints in the supply chain; and aligning the business enterprise. This 113 year old company is comprised of 5 manufacturing locations; 1200 components; 45 domestic suppliers; 15 job work suppliers; 10 international suppliers across 5 countries; and 3 tool repair suppliers. The product line is: 700 manufactured SKUs, 125 traded SKUs, and customized solutions. The supply chain consists of 5 mother warehouses, 21 distribution hub warehouses, and 1 bonded warehouse. The customer base includes 800 domestic direct institutional customers; 40 international customers; 500 domestic distributors / direct dealers, 20,000 retailers, distribution in 480 districts of India, and 3 major captive OEM customers. Distributors undesirable effects (UDEs) include: surpluses of many SKUs and shortages of other SKUs; constantly demanding higher margins and /or incentives to liquidate excess stock; significant stock pile-up during month /quarter / year end; incentives based on purchases from Godrej; forced to buy whatever is available in order to meet targets; retail outlets expect frequent supplies in small batches whereas supplies from Godrej is in bulk; and high credit to retail outlets. Godrej Salespersons UDEs include : incentives dependent on distributor buying; requesting distributors to buy material at month-end; distributors had a higher control; lack of job-satisfaction; entire effort towards selling to retailers during the first two weeks of the month to liquidate high stocks piled up with distributor at month-end and thereafter, run around in the market to collect money for distributors; afraid to demand market corrections from non-performing distributors. UDEs from the supply group were also provided. Results include: profits almost doubled; cash flow increased over 100%; inventory is reduced by 40% over the last year; 1/3rd of FG warehouse space has been released; 30% of SKU accounted for 91% of sales and 93% of throughput and inventory turns of distributors increased by more than 3 times.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Instructor(s)
Jennifer Eckman
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.