Godrej Interio - Institutional Business

Godrej Interio | Transforming sales and business development

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Godrej Interio's NPD Transformation: Reduced development Time by 20% and achieved 75% on-time Launches!

Godrej Interio Healthcare

Bahasa View the top management of Godrej Interio, a business unit of Godrej & Boyce Mfg. Co. Ltd., speak about how they increased sales by 35% and doubled their market share in the healthcare business.  The biggest challenge here was that, for healthcare furniture, the business development process required multiple interactions with different stakeholders in a medical facility. Since, as in the case of most B-B environments, salespeople were in constant conflict between using their available bandwidth to service current orders and getting new orders, developing new accounts was mostly forced to take a backseat. However, the company was able to resolve this conflict and released capacity from the existing team itself for business development.

Godrej Interio Healthcare | Unlocking sales capacity

View the top management of Godrej Interio, a business unit of Godrej & Boyce Mfg. Co. Ltd., speak about how they increased sales by 35% and doubled their market share in the healthcare business.  The biggest challenge here was that, for healthcare furniture, the business development process required multiple interactions with different stakeholders in a medical facility. Since, as in the case of most B-B environments, salespeople were in constant conflict between using their available bandwidth to service current orders and getting new orders, developing new accounts was mostly forced to take a backseat. However, the company was able to resolve this conflict and released capacity from the existing team itself for business development.

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Vector has developed bespoke solutions for equipment manufacturing or custom manufacturing companies to help them identify and address constraints in operations, sales, spares &amp; services, or new product development that limit consistent sales and profit growth.&nbsp;Working with companies like Laxmi Machine Works (LMW), Godrej Material Handling, RPG Raychem, Kirloskar Oil Engines Ltd. Bajaj Electricals (Luminaries Division), amongst many others, Vector has helped clients bring about excellence in equipment delivery, turbo-charge their sales &amp; business development efforts and set new benchmarks in after-sales services.&nbsp;

An equipment manufacturing or custom manufacturing company’s ability to grow its sales and profits consistently is limited by constraints in the following areas like Operations, Sales, Spares and Services and New Product Development:

Consulting Services for Equipment Manufacturing Companies

Analyses of top custom manufacturing companies, including manufacturers of capital goods and custom manufacturers of machinery and equipment, which design a product and make to order, show that only a handful have realized healthy sales, profits & ROI in the last decade.

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Equipment Manufacturing

Vector Consulting Group helps industrial equipment manufacturing firms develop agile new product development, operations, sales and service to enhance ROI.

Industrial Equipment Manufacturing Consulting Services in India | Vector Consulting Group

Learn how Vector Consulting helped Godrej Interio Healthcare increase market share by creating a customer-focused approach and optimizing sales processes using TOC principles.

Godrej Interio Healthcare - Boosting Market Share with TOC | Vector Consulting Group

Boost sales team effectiveness. Increase the capacity of the company to generate new business by freeing the sales team from transactional activities in sales.&nbsp;

Solution helps release capacity of sales team and enhances their effectiveness.

Industry Solutions

Sales Process Transformation

Explore Vector Consulting Group's  sales process transformative solutions that leverage R&D insights to streamline operations and reduce lead times.

Enhance Sales & Reduce Lead Time in R&D | Vector Consulting Group

India's largest lift truck maker slashed manufacturing lead time by 33% and increased export output by 54%

Godrej Material Handling

GODREJ-MHE, India's largest lift truck Manufacturer, adopted Theory of Constraints framework with the help of Vector Consulting Group to revamp its operations to enable it to better meet customer expectations. The company discusses this journey

Godrej Material Handling Equipment | Agile supply chain enabled by TOC

Discover how Vector Consulting helped Godrej Material Handling reduce lead times by two-thirds and improve supply chain efficiency using TOC principles.

Godrej Material Handling - Transforming Operations with TOC | Vector Consulting Group

Reduce production lead time, improve delivery reliability, and increase plant output by using hidden capacity in plants.&nbsp;

bahasa Solution helps resolve the conflict of capacity utilization and need to deliver specific orders for customers in the shortest lead time.

High Velocity Custom Manufacturing

Solution helps resolve the conflict of capacity utilization and need to deliver specific orders for customers in the shortest lead time.

Enhance efficiency and precision in specialized industries by implementing Vector Consulting Group's custom manufacturing solutions.

Custom Manufacturing Solutions | Vector Consulting Group

Among other benefits, the company gained a 25% jump in overall sales and a massive 100% increase in dealer network sales.

Godrej Storage Solutions

Learn about Vector Consulting Group's initiatives with Godrej Storage Solutions, increasing on-time delivery and plant output.

Godrej Storage Solutions | Improved on-time delivery & plant output | Vector Consulting Group

On-time delivery enhanced to over 85%  in this multi-project environment.

Godrej Tooling

See how Vector Consulting Group assisted Godrej Tooling in improving on-time delivery and cutting down manufacturing lead times.

Godrej Tooling - Improve on-time delivery  | Vector Consulting Group

Flow Management in projects helped the company achieve a massive 380% increase in execution-based billing and >100% growth in profit margins.

Godrej Electricals & Electronics Division

Godrej Electricals & Electronics | Rapid execution of infrastructure projects

Vector’s Engineering &amp; Construction consulting practice, offers tailored solutions for Engineering, Procurement and Construction (EPC) companies, enabling them to identify and address constraints in project execution and operations that may hinder their sales growth and profitability.&nbsp;By implementing a unique Flow Management approach in its consulting assignments for construction projects, Vector has enabled clients such as Skipper Ltd., Bajaj Electricals (Engineering &amp; Projects Division), Godrej (Electricals &amp; Electronics Division), Tata BlueScope Steel Ltd., and KEI Industries Ltd. to complete projects ahead of schedule while increasing the number of projects executed within the company's allocated operating expenses.

An Engineering and Construction (EPC) company’s ability to grow and sustain sales and profits is limited by constraints in Project Management and Sales.

Consulting Services for Engineering and Construction Businesses

The growth of project organizations dealing with turnkey projects involving engineering, procurement and site construction has slowed down despite healthy demand because they operate in a highly uncertain environment (ROW issues, bureaucratic hurdles, etc.) Find out how companies can not only manage but also flourish in spite of these challenges.

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Engineering & Construction

Vector Consulting Group offers consulting services to engineering and construction companies to enable business growth and sustenance of profits, by developing high speed project execution capabilities.

Engineering and Construction Consulting Services in India | Vector Consulting Group

Discover how Vector Consulting helped Godrej PIRE reduce delays, control costs, and improve margins on large-scale electrification projects using TOC principles.

Godrej PIRE - Improving Project Timeliness & Margins | Vector Consulting Group

bahasa Seamlessly align flow of material, design, contract labour, and issue resolution in projects to help reduce lead time of project completion in large construction projects.

Solution helps increase working capital turns, while ensuring rapid execution, on-time performance, and clean financial closures of projects.

Rapid Large Project Execution

Seamlessly align flow of material, design, contract labour, and issue resolution in projects to help reduce lead time of project completion in large construction projects.

After implementation, production time dropped by 50%, and profits increased by 4x for this security products company.

Godrej Security Solutions

Learn how Vector Consulting helped Godrej Security Solutions quadruple profits, double sales, and improve on-time delivery by revamping their supply chain using TOC principles.

Godrej Security Solutions - Supply Chain Transformation | Vector Consulting Group

Godrej Indonesia implemented 'pull-based' replenishment with their largest modern trade partner; their results: inventory reduced by a massive 41% while maintaining a consistent product availability of 98%-100%.

Godrej Megasari

Vector’s Consumer Goods &amp; Retail consulting practice offers expertise to consumer-packaged goods (CPG) companies involved in the distribution and retail of their products. These strategies help expand market range and reach, create market pull through influencers, and enhance overall supply chain and distribution efficiencies.&nbsp;With path-breaking solutions in Sales &amp; Distribution, New Product Development, Inventory Planning, and CRM programs, Vector has delivered significant business results for companies such as Bajaj Electricals (Consumer Products), VIP Industries Ltd., Godrej Interio, Polycab, Pidilite, Godrej Security Solutions, and many more.

Organizations producing, distributing, and making products available at retail points can be consumer goods companies or consumer packaged goods companies (CPG). Such companies could develop a constraint in areas like Internal Operations and Distribution, External Distribution, Sales Bandwidth, Retail Operations and New Product Development.

Consumer Goods & Retail Consulting Services

Much as they may wish otherwise, most Indian consumer good companies find that they have no consistent “Reach” into almost 65% of the country’s population (especially in rural, rur-ban areas) since they believe that this spread out population would be ‘cost inefficient’ to service.

Consumer Goods & Retail

Vector Consulting Group provides consumer good and retail consulting services to help increase sales by exponentially improving availability of products across the country.

Consumer Good and Retail Consulting Services in India | Vector Consulting Group

Discover how Vector Consulting helped Godrej Megasari enhance manufacturing and distribution of household products using TOC principles for improved efficiency and growth.

Godrej Megasari - Transforming Manufacturing & Distribution | Vector Consulting Group

Use 'pull' based inventory optimisation to achieve near-perfect order fulfillment of products with demand forecasting and lean manufacturing to improve supply chain efficiency.&nbsp;&nbsp;

Solution helps resolve the dilemma of having to face poor availability in spite of having excess inventory at the plants and at points of sale.

Pull Based Supply Chain and Distribution

Enhance supply chain with Vector Consulting Group's innovative strategies optimizing distribution networks to drive business growth.

Supply Chain & Distribution Excellence | Vector Consulting Group

This leading custom home kitchen solutions brand, revamped its manufacturing and distribution, improved its OTIF to 90%, and had a strong 25% Y-o-Y growth in its order book.

Godrej Interio - Home Kitchens

Learn about Vector Consulting Group's work with Godrej Interio, improving on-time performance in their Home Kitchens division.

Godrej Interio-Home Kitchens | Improve on-time-in-full performance | Vector Consulting Group

Godrej Interio's game-changing shift in R&D using Rapid Flow R&D Solution to reduce lead times resulted in a staggering 111% increase in new product launches.

Godrej Interio - New Product Initiatives

Godrej Interio (NPD) | Enabling rapid new product development

Learn how Vector Consulting helped Godrej Interio boost new product output and reduce development lead times using TOC principles, enhancing market responsiveness.

Godrej Interio - Accelerating New Product Development | Vector Consulting Group

Address chronic delays and poor output in research and development, reducing lead time and alleviating employee stress.&nbsp;

BAHASA Solution helps resolve the conflict between expediting individual projects and protecting delivery requirements of other projects.

BAHASA Rapid Flow Research and Development

Solution helps resolve the conflict between expediting individual projects and protecting delivery requirements of other projects.

Rapid Flow Research and Development

Unlock the potential of R&D strategies with Vector Consulting Group's solutions that harness innovation, streamline operations, and drive sustainable growth.

Enhancing R&D for Strategic Growth | Vector Consulting Group

Godrej Interio's service division transformed Spares & Services operations; they improved service levels without increasing fixed costs and reduced consumer complaints by 55%.

Godrej Interio - Service And Spares

Godrej Interio's service division transformed spares & services operations; they improved service levels without increasing fixed costs and reduced consumer complaints by 55%.

Learn about Vector Consulting Group's impact on Godrej Interio's Service and Spares, enhancing customer service and ensuring spares availability.

Godrej Interio - Service and Spares - Improve customer service | Vector Consulting Group

Improve spare parts availability, parts sales, and after sales service while simultaneously reducing inventory in the entire supply chain management.&nbsp;

Solution helps resolve the conflict between ensuring availability of large variety of spares to improve speed of servicing, while reducing overall inventory.

Lean Inventory Spares & Services Solution

Optimize spare parts and service operations with Vector Consulting Group's tailored strategies ensuring high availability and efficient delivery.

Spares & Service Management Solutions | Vector Consulting Group

Godrej Interio, a business unit of Godrej &amp; Boyce Mfg. Co. Ltd., is India’s largest furniture company. It is also one of India’s premium furniture brands and in addition to retail consumers, it serves a large number of institutional segments including office spaces, healthcare, laboratory, education, etc. &nbsp;Unlike the consumer segment sales, institutional sales processes are characterised by much longer enquiry to order cycle with many customer touch points. This means that acquiring a customer is a long and time-consuming activity. At the same time, acquired customers’ order to collection cycle is also fairly long with many tasks involved to ensure good after sales experience. Consequently, like most companies engaged in B-B business, Godrej interio’s sales team too faced a perpetual conflict.&nbsp;On the one hand sales teams must meet new customers to establish new business, and on the other they must focus on support activities&nbsp;and current leads&nbsp;to ensure monthly order booking and sales targets. Most of their capacity was earlier taken up by current customers and leads. Consequently, there was a constant pressure from sales teams for addition of team members. Also, there were frequent requests for discounts, non-standard products, etc. to enable the team to secure sales through shorter number of customer interactions. Subsequently, severe pricing pressure resulted in their institutional overall revenue stagnating in their historically stable segments. At the same time the growth from new segments was not catching up.&nbsp;However, by implementing TOC thinking in their sales processes as well (already implemented in operations), the company successfully addressed this conflict between developing new customers and pursuing current leads! Redesigning their sales process and releasing as much as 30% capacity from the same team, now allows the company to enter early in the enquiry stage and partner their customers in identifying suitable furniture solutions.&nbsp;The company now find that their realizations have improved and growth rates and market share in new segments are increasing substantially.&nbsp;&nbsp;The following are the results experienced so far.&nbsp;&nbsp;<img src="https://new-stage-be.vectorconsulting.in/storage/editor_uploads//download-1_1680169292.png">

The biggest challenge we felt was that in the segments where we were strong, there was competition coming in; and we had to either drop prices or lose orders. At the same time, we were not growing in the new segments where we really wanted to grow. This was leading to two problems. One was, there was a drop in price realization, and, hence, pressure on profitability. The second was that there was constant pressure to increase the sales staff to cover the market right, which would add to the fixed cost. And, as a result of this, the ratio of fixed cost to the revenue would be unfavourable.

What were the major challenges that you were facing in B2B sales?

We said let’s observe a day in the salesmen’s life, and understand how he spends his time. We realized that the salesperson was spending more time in backend operations which are not the core selling operations, but operations related to quotation making, payment reconciliation, follow up for some dispatch, etc. And they were happy doing that work because they also felt that the customer wanted a Single Point of Contact (SPOC). So, we asked ourselves, “Is the customer really looking for a SPOC or is he looking for someone who could proactively respond to his needs?” So, we started a centralized cell at the corporate office that would take care of all the customers’ other needs, and release the salesmen from their activities connected with quotations making, reconciliation, etc. Now this, helped us in releasing capacity of salesmen.

What was the approach you took to address these challenges?

First is that our own salespeople are happy that they are doing the core business. And we are also happy that we are able to use their skills and their capability in the right manner. The second is that the sales team is able to cover the market more effectively, and we see that the business is improving now. We are able to generate better enquiries, better orders. The customers are quite happy that they are getting a response to their queries faster. Faster than from salespersons, who at times they had trouble contacting.

How are the sales people responding to this new approach? Do they feel that they are losing control? And how are the customers responding?

What we found was that while we had sorted out one problem, the other problem of a long-term development in segments like MNCs, private customers, architects where more value selling is required was not really happening. And very often the sales people were trying to get into a short-term objective of trying to again go in for high discounts, or trying to sell APO (‘As per Order’) items or customized. This was leading to a vicious circle in manufacturing and the whole way of operations- with realizations not really coming, and the customers still treating us as a commodity seller rather than as someone who’s actually giving them real value.

So, we started looking at this problem. While we had released the sales person’s capacity, we had not really solved the problem to the full extent. We then decided that we should have a separate team who would be working on it. Because one aspect we discovered was that whenever the sales people were asked to develop new customers and also sell to existing customers, it was always a short-term vs long term conflict. The sales people were happy to reach their targets to a short-term solution rather than going for a long-term solution that would bring in sustainability to the business over a long period of time. So, I think that was one of the problems that we had.

So, we then decided that we would go in for a separate team to do business development. Thankfully, the capacity that we released by having the backend processes taken away from sales people, was gainfully deployed for this. We did not have to go in for additional people.

What did you do with the released sales capacity?

Discover how Vector Consulting helped Godrej Interio improve sales processes, boost market share, and enhance growth in institutional segments using TOC principles.

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