The company is a reputed panel Electrical builder in the LV and MV segment. They have been in this field for the last 20 years and have earned a reputation as a market leader through technical excellence and customer focus. Their custom built solutions are used in multiple segments including Building, OEM, Industry and Infrastructure. Given the high growth potential, the management were considering capacity expansion to meet future growth targets.

Business Reality

The Electrical Panel market is highly competitive, quality and technical capability are no longer differentiators for customers. Increased competition has led to customers demanding stiff commercial and delivery terms. Pressure on margins is very high and being flexible and ensuring quick deliveries is the only competitive advantage. The business essentially being an “assemble-to-order” environment, has a high dependency on bought-outs and therefore on vendor support. It’s also a high risk business due to high product value, tough payment terms and high lead times.

The need therefore was to strengthen internal operations capabilities in such a manner that it could be leveraged by the Sales team in the market place and grow aggressively.

Challenges

Operational

  • Poor on-time performance < 20%
  • Shop floor giving a sense of inadequate capacity
  • High dependency on owner for day-to-day operations

Sales

  • Uneven sales booking leading to high pressure in the last quarter
  • Unsure of where business is likely to come from
  • Transactional approach to sales and business development

Strategic

  • Lack of clarity on business growth strategy and implementation
  • Unsure on decisions related to capacity and market expansion
  • Concern on internal capabilities to handle next level of growth
  • Limited focus on long term initiatives and actions by the owner due to high level of internal focus

Results

Quantitatives

  • Due date performance: > 65%
  • Reduced WIP/Inventory: ~ 30%
  • Tripled production output from existing infrastructure and resources
  • Predictable sales leading to better resource utilization, reduced cash flows and improved profitability

Qualitatives

  • Next level management team taking complete ownership for day to day operations
  • Improved communication, transparency and team work
  • Change to a review and results oriented culture across the board 
  • Senior team’s managerial capabilities significantly enhanced

Strategic

  • Structured and planned approach to business planning led to quantum jumps in business growth
  • Avoided making additional capacity investments which helped them stay competitive during tough market conditions.
  • Owner’s time released from day to day operations and sales allowing increased focus on long term and helping them gain market leadership position
“Aspire Infinite has been instrumental in planning our operations since 2010. They have helped build a goal oriented culture which has helped us move forward in a planned and factual manner. Aspire WoW provided us with clarity on most productive utilization of time. Concepts like Kitting has made life very easy for everyone. This engagement has enabled us to grow in multiples with the same infrastructure and resources with reduced chaos and fire-fighting. Apart from the quantitative benefits, the integrity, transparency and business ethics with which the Aspire team works with is highly appreciable“
Abhay Kulkarni, Managing Director
Aspire Infinite | Electrical Panels