The Situation
Innovative Labeling Solutions (ILS) was facing the challenge of processing over 100 unique orders daily while dealing with a series of inefficiencies that threatened its operational effectiveness. ILS's reliance on manual processes and significant “tribal knowledge” created an environment where valuable insights were often siloed and difficult to access, resulting in inconsistent outcomes across the organization.
These manual processes led to considerable waste and inefficiencies on the shop floor, further compounded by the presence of numerous reports that offered little in terms of actionable information. Despite the abundance of data, multiple people within the company analyzed this information, often arriving at different conclusions. This disparity not only created confusion but also hindered the company’s ability to make informed decisions promptly.
Recognizing the need for a solution that could streamline operations, reduce waste, and ensure consistent, actionable insights, the company sought to overhaul its data management approach. By addressing these core issues, the company aimed to enhance its operational efficiency, minimize waste, and align its data analysis processes to drive better decision-making across the board.
The Solution
Organizational Change & Enterprise Value
AMEND’s David Velie served as interim COO at ILS and came alongside leadership to first look at the team responsible for the desired outcomes. We evaluated the current-state org chart to ensure the right team was in place to scale the organization. We stacked the team with “A” talent and drove organizational change by moving to a performance-driven culture. We also assessed which industry verticals to target and defined strategies to penetrate those verticals
Process Improvements
AMEND mapped and evaluated current-state processes, targeting throughput and waste. Root cause analysis was used to determine the “why” behind the underperformance. We then implemented improvements to streamline these processes, including reengineering the entire order-to-cash process. Establishing new processes and redefining KPIs changed the way ILS looks at their business from a day-to-day perspective.
Business Intelligence & Technology
Many of ILS’s inefficiencies were resolved with the implementation of Business Intelligence and technology. Existing reporting mechanisms lacked the level of granularity needed to truly understand what was happening in the business. AMEND built and deployed enterprise-wide automated dashboards and reporting (including customer-facing reports) to create a single-source of truth for all KPI’s.
Additionally, the scheduling process at ILS was manual, time-consuming, and relied heavily on tribal knowledge. We designed an Advanced Planning and Scheduling tool called Batched to automate and optimize their production schedule. We also performed Customer and SKU analysis and rationalization, identifying areas of opportunity for improved customer service and ways to become more profitable by eliminating certain customers.
The Results
Org Chart development enabled sustainable growth of the business and BI work allowed leadership to focus on other priorities. Implementation of BI became the catalyst for most process improvement projects and opened the door for timely, candid conversations about what might need to happen to shift strategies or reenergize initiatives. Establishing automated workflows reduced human error and labor inefficiencies, significantly improved on-time delivery, and drastically reduced quality issues. Ultimately, this resulted in increased gross margin and EBITDA of ~+5%.
