Harvest
A studied reduction of excessive complexities to align operations with true customer utility
A Story of Mismatched Value
In our client's industry, a products' precision is key.
Their product was a crucial element in the downstream application. In theory, the more precise the product could be, the tighter the application limits could be - a valuable characteristic to the end user and regulatory bodies. These are often referred to as lower and upper specification limits, or LSLs and USLs for short.
But they went too far.
Years of product development continued without resistance, and it was only until issues began arising in other sectors of the client's organization that the same "success" of precision had become a direct threat to the client's business. This is a case study of mismatched value.
From the Client
Product
Authors of a products' unique selling points, or USPs.
The years-old position was to develop unique and highly precise products and provide customers with a better solution.
Sales
Accountable to bridge of market needs into the organization.
Maintained the years-old narrative that high-precision products were superior, and sold the portfolio in bundles for optimal supply health.
Manufacturing
Each product is tested and measured during production.
Key characteristics are digitally tracked until the products are separated in the factory by these characteristics, called "bins".
Supply Chain
Products are required to be delivered in a pre-determined standard part increment, or SPI. Only one "bin" is allowed per SPI.
Any quantity of products short of the SPI cannot be delivered.
“Customers aren't allowed to buy the products in single bins. Our contracts only allow purchases of the products in bulk in multiple bins.”
Sales leader at the client
Scope of Change
Although the gap between the product's perceived value and actual value accelerated the inefficiencies across the client's different departments, solutions to close this gap were simpler.
The WHAT
Re-align manufacturing output towards use conditions in the market and their applications
The WHY
Improve supply continuity, reduce material wastage, and increase manufacturing effiency
The HOW
Consolidate the high-precision bins into larger structures without diluting product value
THE ANALOGY
A logistics company with too many delivery "bands", or time windows, creating inefficiency.
8:30am
9:15am
10:00am
2:30pm
12:15pm
9:30pm
7:30pm
6:00pm
3:45pm
1:15pm
CURRENT STATE
Precise delivery options allow customers maximum flexibility and choice for their deliveries, an important surface value.
However, the numerous delivery options generate inefficiency and lower operating flexibility for the courier.
Complex routing created by the tight time windows adds time and unnecessary mileage. The crossing routes increase distance, delay deliveries, and drive up operating costs.
REGROUPED DELIVERIES
Consolidating the stops into broader time windows enables simpler route planning and increased delivery efficiency.
Customers retain delivery customization in larger time bands.
- MORNING -
- AFTERNOON -
- EVENING -
- MORNING -
8:00am to 12:00pm
- AFTERNOON -
12:00pm to 4:00pm
- EVENING -
4:00pm to 10:00pm
IMPROVED ROUTING
Smooth, efficient routing means that van loads are more balanced. Fewer miles, on-time deliveries, and lowered operating costs improve customer satisfaction and increase courier margins.