Business process improvement efforts grew revenue by 70%. This focus on people, process and communication not only increased revenue but it reduced expenses, improved profitability and brought in significant government contracts. A business process focus improved internal operations and greatly enhanced the customer experience, driving customer loyalty and customer retention.
Client: Small distribution business that had grown quickly from a garage to 7- figure revenue.
The Challenge: Get Beyond the Revenue Ceiling and Drive Real Growth
The business had grown nicely…too “nicely”. It grew so fast that the lack of infrastructure, a business process focus and the right people were not only preventing business growth, but too many errors were being made. Every other phone call required calming down a customer or reshipping an order. Shipping costs were out of control. Orders were being reshipped, incurring charges for expedited orders, due to poor planning. All of the management focus was on the day-to-day fires. Revenue was flat.
The Solution
We stepped back a moment to look at what was happening. We reviewed the ordering process and found a number of critical fail points. Business process improvement was key. We updated the order form and required fields, updated and trained staff on the process for order entry and capability to fulfill. We reviewed and adjusted promised timelines on delivery. We set real and clear targets for revenue growth, expenses and profitability. We reviewed staffing levels for a variety of types of fulfillment projects and, based on more accurate project planning, were able to bring down hours, time and wages per project.
Results: Government Contracts; One-Year Revenue Increase of 70%
The business process improvement was felt everywhere. With procedures cleaned up, more attention to detail and some basic training, waste was reduced, which pushed profit right to the bottom line. Customers were seeing improvements and got back on board. All of this infrastructure allowed the company not just to obtain a large government contract, but to successfully fulfill it! In a year’s time, revenue grew 70%. The government work continued beyond that first contract. The business now had a strong foundation for value growth and exit planning.