Accessory Manufacturer
SITUATION
Manufacturer and importer/distributor of small leather goods and accessories needed a new business model to fit the profile of a Lean importer/distributor and marketer.
DRIVER GOAL
- Adjust business model, enabling the company to improve its competitive position by realizing annualized cost savings.
- Develop a disciplined marketing approach.
RESULT
- Reduced cycle time in the Concept-to-Market process by 30% and unplanned air freight costs by 50%.
- Increased Sample Room productivity by 25%.
Case Study
Develop New Business Model & Improve Competitive Position
Issue
A manufacturer and importer/distributor of belts, wallets, small leather goods and accessories, which operates its own plant and distribution center in the U.S. and sources products from China, Central and South America, needed a new business model to fit the profile of a Lean importer, distributor and marketer of products.
Highland Approach
The Highland Group conducted an analysis of the operation and collaborated with client personnel on the development and implementation of a re-imagined Concept-to-Market process, a targeted improvement plan (utilizing Lean techniques), and various structures to support the new model and measure and optimize ongoing performance.
Actions Taken
- Developed a disciplined marketing process that would allow the company to properly plan and define its marketing and sales objectives on a timely basis.
- Restructured the organization to fit the new model.
- Outsourced domestic manufacturing activities and reduced the number of suppliers in China, in favor of expanding sourcing in Central America.
- Developed a disciplined marketing approach with clear differentiation between sales and marketing functions.
- Developed a program to measure the effectiveness of the sales force.
- Developed a distribution strategy to relocate or outsource services.
