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

Godrej Interio Healthcare

View the top management of Godrej Interio, a business unit of Godrej &amp; 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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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 BA

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Equipment Manufacturing

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

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

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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.

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

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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.

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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%.

Godrej Interio’s B2B operational revamp: implementing Complete Order Execution (COE) increased OTIF delivery from 40% to 85%+, unlocked 30% sales team bandwidth, and delivered 46% revenue growth.

Consumer Goods & Retail Case Study |Godrej Interio

Godrej Interio

Godrej Interio, a business unit of Godrej &amp; Boyce Mfg. Co. Ltd. is India's largest furniture manufacturing company. In addition to the office and home furniture it is well known for, the company has a new healthcare furniture line that aims to transform healthcare spaces and promote a safe healing environment.&nbsp;&nbsp;&nbsp;The challenge for Godrej Interio was that its market share in this segment (healthcare furniture) was low (around 5%) and not growing at the desired pace. A deeper analysis of the industry showed that healthcare furniture is considered specialised equipment that earns revenue for a medical facility (value is perceived only if it functions well for an extended period at a low cost). Therefore, healthcare furniture needs a different Go-To-Market offer approach from that of standard furniture. Moreover, the buying process involves multiple interactions with other stakeholders in a medical facility. This requires significant bandwidth and persistent efforts from the salespersons. Also, as the medical fraternity is highly connected, references and testimonials form a key decision-making criterion.&nbsp;&nbsp;&nbsp;As in the case of most B-B environments, salespeople at Godrej Interio were in constant conflict between using the available bandwidth to service current orders and getting new orders. So, in this environment, business development or developing new accounts was forced to the backseat. However, the company was able to resolve these conflicts with Vector's help. Expert sales capacity was released by creating a central customer support team to handle all non-sales activities. A more comprehensive offer focused on the lifetime cost of ownership of healthcare furniture as the key value proposition. Then the released sales capacity was used to approach stakeholders much earlier in the sales cycle and systematically develop new accounts.&nbsp;&nbsp;&nbsp;Within a year of implementation, the following results were achieved:&nbsp;&nbsp;<figure class="image"><img style="aspect-ratio:874/691;" src="https://web-assets.vectorconsulting.in/storage/editor_uploads//image-1719486663_1776937406.png" width="874" height="691"></figure><figure class="image"><img></figure><figure class="image"><img></figure>

Godrej Interio, a business unit of Godrej &amp; Boyce Mfg. Co. Ltd. is India's largest furniture manufacturing company. In addition to the office and home furniture it is well known for, the company has a new healthcare furniture line that aims to transform healthcare spaces and promote a safe healing environment.&nbsp;&nbsp;&nbsp;The challenge for Godrej Interio was that its market share in this segment (healthcare furniture) was low (around 5%) and not growing at the desired pace. A deeper analysis of the industry showed that healthcare furniture is considered specialised equipment that earns revenue for a medical facility (value is perceived only if it functions well for an extended period at a low cost). Therefore, healthcare furniture needs a different Go-To-Market offer approach from that of standard furniture. Moreover, the buying process involves multiple interactions with other stakeholders in a medical facility. This requires significant bandwidth and persistent efforts from the salespersons. Also, as the medical fraternity is highly connected, references and testimonials form a key decision-making criterion.&nbsp;&nbsp;&nbsp;As in the case of most B-B environments, salespeople at Godrej Interio were in constant conflict between using the available bandwidth to service current orders and getting new orders. So, in this environment, business development or developing new accounts was forced to the backseat. However, the company was able to resolve these conflicts with Vector's help. Expert sales capacity was released by creating a central customer support team to handle all non-sales activities. A more comprehensive offer focused on the lifetime cost of ownership of healthcare furniture as the key value proposition. Then the released sales capacity was used to approach stakeholders much earlier in the sales cycle and systematically develop new accounts.&nbsp;&nbsp;&nbsp;Within a year of implementation, the following results were achieved:&nbsp;&nbsp;<figure class="image"><img style="aspect-ratio:874/691;" src="https://web-assets.vectorconsulting.in/storage/editor_uploads//image-1719486663_1776937396.png" width="874" height="691"></figure>

Bahasa Godrej Interio is part of the Godrej and Boyce manufacturing company which is a large conglomerate. Interio is one of the biggest divisions of the company; it is a leader in the category of furniture for both homes and offices. A couple of years ago, we introduced healthcare furniture; this is for the medical fraternity and the healthcare segment.

Bahasa Can you briefly introduce Godrej Interio’s healthcare business?

Godrej Interio is part of the Godrej and Boyce manufacturing company which is a large conglomerate. Interio is one of the biggest divisions of the company; it is a leader in the category of furniture for both homes and offices. A couple of years ago, we introduced healthcare furniture; this is for the medical fraternity and the healthcare segment.

Can you briefly introduce Godrej Interio’s healthcare business?

Bahasa So one challenge was that we were not into this segment earlier. And as a result of that, the buying method of this segment, which is based on references, was something which we were finding as an obstacle. The second challenge was that the competition was well entrenched in some of the large customers. So, it was initially difficult to get our value propositions communicated. And the third challenge was that our sales teams were not as clear as to the requirements of this segment, as they were to our other segments – institutions and homes. So, these challenges reflected in terms of the sales not really growing at the desired rate – it was growing by about 7-8% over a small base and our market share also continued to be low -in the range of about 5%.

Bahasa What are the major challenges the company faced in the healthcare segment?

So one challenge was that we were not into this segment earlier. And as a result of that, the buying method of this segment, which is based on references, was something which we were finding as an obstacle. The second challenge was that the competition was well entrenched in some of the large customers. So, it was initially difficult to get our value propositions communicated. And the third challenge was that our sales teams were not as clear as to the requirements of this segment, as they were to our other segments – institutions and homes. So, these challenges reflected in terms of the sales not really growing at the desired rate – it was growing by about 7-8% over a small base and our market share also continued to be low -in the range of about 5%.

What are the major challenges the company faced in the healthcare segment?

Bahasa What we realised is that in this segment, the customer treats furniture as a very critical equipment. Furniture in any case is critical, but what happens specifically in case of healthcare is that the beds are where the patients get treated. So, in case there is any issue with the bed, there is a loss of opportunity to treat the patient and also a loss of revenue. This is something which makes the criticality of the equipment in this setup very high. The other thing which we found different in this particular segment was that the sales team is required to conduct multiple meetings. The main reason for this is that there are various stakeholders.

Bahasa You mentioned that the customers in this segment are different. Can you elaborate?

What we realised is that in this segment, the customer treats furniture as a very critical equipment. Furniture in any case is critical, but what happens specifically in case of healthcare is that the beds are where the patients get treated. So, in case there is any issue with the bed, there is a loss of opportunity to treat the patient and also a loss of revenue. This is something which makes the criticality of the equipment in this setup very high. The other thing which we found different in this particular segment was that the sales team is required to conduct multiple meetings. The main reason for this is that there are various stakeholders.

You mentioned that the customers in this segment are different. Can you elaborate?

Bahasa The sales team were unable to dedicate their time and attention for business development. This was because a lot of their time was getting spent in servicing the orders of the existing customers. The other challenge being faced was that the salespeople were responsible for both revenue and business development. So their focus was more on short term sales, rather than developing accounts for the future. The outcome of all this was that the sales team was late in entering the sales process. And hence it was then becoming more of a discussion of commercial negotiations, rather than helping shape the requirements of the customers. So as a result of this, the enquiry conversion was low. And the percentage of enquiries coming with good realisations was also low.

Bahasa What was the challenge faced by the sales team?

The sales team were unable to dedicate their time and attention for business development. This was because a lot of their time was getting spent in servicing the orders of the existing customers. The other challenge being faced was that the salespeople were responsible for both revenue and business development. So their focus was more on short term sales, rather than developing accounts for the future. The outcome of all this was that the sales team was late in entering the sales process. And hence it was then becoming more of a discussion of commercial negotiations, rather than helping shape the requirements of the customers. So as a result of this, the enquiry conversion was low. And the percentage of enquiries coming with good realisations was also low.

What was the challenge faced by the sales team?

Bahasa The crux of the problem, as we actually could clearly identify when we decided to launch this particular project, was that we need to make the bandwidth of the salespeople free for them to do business development work with clients. So, what we did was that we actually reduced their bandwidth from having to service the existing accounts and shifted the team’s focus and energy onto generating new requirements.

Bahasa What was the direction of solution adopted?

The crux of the problem, as we actually could clearly identify when we decided to launch this particular project, was that we need to make the bandwidth of the salespeople free for them to do business development work with clients. So, what we did was that we actually reduced their bandwidth from having to service the existing accounts and shifted the team’s focus and energy onto generating new requirements.

What was the direction of solution adopted?

Bahasa  We found an interesting solution to this problem. We allocated the responsibility of servicing existing clients to a small pool of centralized resources. This created a win-win. Existing clients were happy that their requirements were being catered to in a more focused and an agile manner. At the same time, new clients could be given attention to. And that is how the business began to grow.

Bahasa If sales team’s focus was shifted to business development, how are the needs of existing clients getting catered to?

We found an interesting solution to this problem. We allocated the responsibility of servicing existing clients to a small pool of centralized resources. This created a win-win. Existing clients were happy that their requirements were being catered to in a more focused and an agile manner. At the same time, new clients could be given attention to. And that is how the business began to grow.

If sales team’s focus was shifted to business development, how are the needs of existing clients getting catered to?

Bahasa Yeah. So in fact, we have clearly stage gated the entire process of business development. And each stage is getting tracked – what are the leads? What is the conversion? How is the servicing happening? All these stages are getting tracked.

Bahasa Has the approach to Business development changed as well?

Yeah. So in fact, we have clearly stage gated the entire process of business development. And each stage is getting tracked – what are the leads? What is the conversion? How is the servicing happening? All these stages are getting tracked.

Has the approach to Business development changed as well?

Bahasa  Yes initially, there was some resistance because at the end of the day sales by definition, I have also been in sales, we don’t like to be governed. So from that perspective, the feeling was that this is kind of a much more active monitoring. But the sales team soon started seeing the benefits, that how this monitoring was actually to support them to approach the customers in a more structured manner and get business. And in fact, it can keep giving them more and more business. Then they started feeling happy about it, and the adoption ramped up.

Bahasa Was there a resistance to this new way of working?

Yes initially, there was some resistance because at the end of the day sales by definition, I have also been in sales, we don’t like to be governed. So from that perspective, the feeling was that this is kind of a much more active monitoring. But the sales team soon started seeing the benefits, that how this monitoring was actually to support them to approach the customers in a more structured manner and get business. And in fact, it can keep giving them more and more business. Then they started feeling happy about it, and the adoption ramped up.

Was there a resistance to this new way of working?

Bahasa So, as a result of this particular project and the exercise, there was a sharp jump in terms of the new accounts from where the business was coming. There was also an improvement in the replacement business and repeat orders, which were coming from the existing customers because they were happy with the kind of service levels which were being delivered. And overall, we saw a significant improvement in the business. So, the business started jumping at a much faster pace. And naturally it started translating into higher market share.

Bahasa What were the benefits realized?

So, as a result of this particular project and the exercise, there was a sharp jump in terms of the new accounts from where the business was coming. There was also an improvement in the replacement business and repeat orders, which were coming from the existing customers because they were happy with the kind of service levels which were being delivered. And overall, we saw a significant improvement in the business. So, the business started jumping at a much faster pace. And naturally it started translating into higher market share.

What were the benefits realized?

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