1. Challenge Introduction
Scenario
BestGift faced an exciting yet daunting growth opportunity. Demand for its products was rising, and scaling up seemed inevitable. However, the company’s ability to handle increased production demands remained uncertain. Sales figures and revenue were clear, but data on production capacity was lacking. This lack of clarity risked overwhelming the team and jeopardizing the customer experience.
Strategic Objective
Our goal was to increase production capacity by at least 30% to support sales growth without sacrificing quality or delivery timelines. Beyond meeting immediate demand, we aimed to build a foundation for scalable growth while preserving the company’s core values.
Vision
To create a more agile, resilient, and data-driven operation capable of adapting to future growth. Empower employees with the tools and training needed to thrive, ensuring customers continue to receive exceptional service as the company scales.
2. Initial Research and Discovery
Qualitative Insights
I began by engaging with the heart of the company: its people. Over several days, I conducted in-depth interviews with 8 key staff members from purchasing, production, sales, and management, gathering over 12 hours of insights. These conversations revealed technical bottlenecks and human challenges.
Key Findings
- 65% of staff cited communication gaps as a major frustration.
- 70% pointed to delays in the engraving process, which added an average of 3 days to delivery times.
- 80% felt they were underutilizing the company’s control software, relying on it for basic functions without leveraging its full potential.
Quantitative Data Collection
Parallel to interviews, we audited the production flow and gathered data in real time, identifying specific pain points:
- Average production time: 12 days per order.
- 40% of delays stemmed from reliance on external suppliers.
- Error rate: 15%, leading to rework and occasional customer dissatisfaction.
3. Service Blueprint
Current State
- Front Stage: Customers faced uncertainty. The website wasn’t connected to internal systems, leading to guesswork on stock availability and delivery timelines. Sales staff often had to manage customer expectations with incomplete information.
- Backstage: Processes like purchasing and engraving were inefficient, and departmental silos caused miscommunication and missed deadlines.
- Support Systems: The control software had untapped potential, being used primarily for tracking past activities instead of driving improvements.
Future State (Post-Intervention)
- Front Stage: Real-time integration between the website and internal systems enabled accurate stock updates and delivery estimates, vastly improving the customer experience.
- Backstage: Internalizing the engraving process and optimizing workflows reduced production times by 25%, improving cross-department collaboration.
- Support Systems: Comprehensive training resulted in 95% of the team using the control software effectively, leading to automated tracking, efficient inventory management, and real-time reporting.
4. Strategic Solutions Implemented
Team Training and Culture Shift
We conducted hands-on training sessions, transforming the team’s approach to technology. Beyond technical skills, we fostered a digital-first mindset that emphasized agility and collaboration.
- Results: 95% of the team reported greater confidence in using the control system, leading to a 40% drop in operational errors.
Restructuring and Team Expansion
Based on feedback and data, we restructured the purchasing and production teams, adding two new members and redistributing responsibilities to balance workloads.
- Impact: Production capacity increased by 35%, enabling a 20% output growth with only a minimal cost increase, resulting in a 5% improvement in gross margin.
Internalizing Critical Processes
We brought the engraving process in-house, eliminating reliance on external suppliers.
- Impact: Saved R$25,000 per month and reduced delivery times by 2 business days, increasing customer satisfaction by 15% (measured via NPS).
- ROI: Savings from this move covered the initial investment within 6 months.
5. Results
- Increased Productivity: Production capacity grew by 40%, supporting a 25% sales increase within 6 months.
- Reduced Errors: Order error rates dropped from 15% to 5%, minimizing rework and improving customer retention.
- Faster Production: Average production time decreased from 12 days to 8 days, enabling faster order fulfillment.
- Improved Employee Engagement: Post-intervention surveys showed 85% of employees reporting higher job satisfaction, with a 20% drop in turnover.
6. Next Steps
Continuous Improvement
We established monthly KPI tracking to monitor production times, error rates, and customer feedback. This ensures we can fine-tune operations continuously.
E-commerce Integration
The next major step is enhancing the e-commerce platform with personalized product recommendations and dynamic updates, further elevating the customer experience.
7. Conclusion
This project wasn’t just about optimizing processes—it was about empowering people and creating a sustainable path for growth. By combining human-centered insights, data-driven strategies, and thoughtful design interventions, we achieved results that benefited both the company and its customers. With a scalable, efficient operation in place, BestGift is well-positioned to embrace future challenges and opportunities with confidence.