MSP Steel & Power Ltd

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MSP Steel | Differentiating steel a commodity product using "pull" distribution

After adopting a replenishment model for distribution, this genset manufacturer increased the availability of spares at service points to 96%, while overall inventory fell by 49%.

Kirloskar Oil Engines Ltd (Spares And Services)

Vector’s unique solutions for auto OEMs and auto components manufacturers help them overcome constraints that hinder their organizational performance in new product development, manufacturing, distribution and sales.&nbsp;Over the years, Vector has worked with companies like Tata Motors – Commercial Vehicles (Spare Parts &amp; Services Division), Ashok Leyland, International Tractors Ltd. (Sonalika Tractors), Fleetguard Filters, JK Fenner (India) Ltd., TVS Motors and Royal Enfield to set new industry benchmarks in operational performance in different areas of business.

We offer consulting services to organizations engaged in manufacturing and distribution of automobiles or auto components. Our consulting methodology focuses on identifying the leverage point of an organization for intervention.

Auto OEMs & Auto Components Consulting Services

Auto OEMs, auto part manufacturers and auto aftermarket players constantly struggle with the auto industry's highly cyclical nature, i.e. an economic boom is generally accompanied by high sales, while sales usually suffer during economic downturns.

industries

Auto and Auto Components

Vector’s unique solutions for auto OEMs and auto components manufacturers help them overcome constraints that hinder their organizational performance in new product development, manufacturing, distribution and sales.&nbsp;&nbsp;Over the years, Vector has worked with companies like Tata Motors – Commercial Vehicles (Spare Parts &amp; Services Division), Ashok Leyland, International Tractors Ltd. (Sonalika Tractors), Fleetguard Filters, JK Fenner (India) Ltd., TVS Motors and Royal Enfield to set new industry benchmarks in operational performance in different areas of business.

The company adopted game-changing consumption-based operations and achieved 99% engine availability at GOEMs and reducing the Order-to-Dispatch lead time for gen-sets from 45 days to 7 days.

Kirloskar Oil Engines Ltd

Kirloskar Oil Engines Ltd (PGBU) | Rapid engine delivery – Four weeks to one week

BA Read More

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.

BA industries

Equipment Manufacturing BA

Equipment Manufacturing

Skipper Pipes' strategic shift from volume-based to consumption-based inventory management delivered strong results for this late entrant in the industry: a 38% YoY jump in sales and a 3X increase in its retailer network.

Skipper Pipes Ltd

Skipper Pipes Ltd. | Building loyalty in markets with low product differentiation

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.

Industries

Consumer Goods & Retail

After a company-wide implementation of TOC, the company enjoyed a CAGR of 25% in the last ten years

Fleetguard Filters Pvt Ltd

Fleetguard Filters Pvt. Ltd. | Revamping operations

After a company-wide implementation of the pull based replenishment model, the company enjoyed a CAGR of 25% over 10 years.

Filtrum's tooling development lead times were reduced by 25%, and on-time delivery improved to 90%.

Filtrum Tools and Components Pvt Ltd

Tractor availability increased to 99%, inventory reduced by 25%, and production doubled with the implementation of 'pull'-based systems in operations.

International Tractors Ltd

International Tractors | Improved productivity & reduced manufacturing lead time

JK Fenner (India) transformed its operations by providing higher product availability (>90%) and faster, more reliable delivery (98%).

JK Fenner (India) Ltd

JK Fenner (India) Ltd. | Operational Excellence using 'Pull' Manufacturing

JK Fenner (India) Ltd.

The company embraced a distribution revolution: Same-day order fill rate surged from 50% to 80%, and inventory reduced by 25%.

Lucas Indian Service Ltd

The company implemented a 'pull'-based distribution solution, achieved a 56% increase in average daily sales and a 200% jump in outlets billed.

Parag Milk Foods Ltd

JK Files and Tools experienced a 30% increase in output from existing capacity in 6 months with the High-Velocity Custom Manufacturing solution.

JK Files and Engineering Ltd - Tools

JK Files and Tools experienced a 30% increase in output from existing capacity in 6 months with the high velocity custom manufacturing solution.

A Tata Group company put in place robust mechanisms to effectively manage its portfolio and optimise its in-store product mix.

Landmark Ltd

Using a retail-focused solution, Liberty Retail increased sales by 30% while reducing store inventory coverage by 50%.

Liberty Retail Revolution Ltd

By adopting high-velocity custom manufacturing, this integrated textile company saw its OTIF increase to 90%, and profits went up by 55%.

Pratibha Syntex Ltd.

Pratibha Syntex Ltd | Transforming Textile & Garment Manufacturing Using TOC | Vector Consulting Group

Textile manufacturers, garment manufacturing firms or fashion garment retailers could develop a constraint in Operations, Sales, Retail operations or Sampling. Vector’s Textile &amp; Garments consulting practice offers unique solutions to help these organizations to overcome these constraints in in Operations, Sales, or Sampling management. The firm has collaborated with Blackberrys, Westside Retail, Arvind Fashions, and Raymond’s, among others, to enhance their On-Time-In-Full (OTIF) performance, ensure high availability at the retail store level, and reduce overall inventory and working capital deployed in the business. Some of these clients have set new industry benchmarks.

Companies in this domain are export houses which undertake garment manufacturing for large retailers as per fabric or garment designs given to them. They could also be fashion retailers who design, source and sell garments under their own brands in addition to selling other garment company brands. These two types of companies (textile manufacturers or fashion garment retailers) can develop a constraint in Operations, Sales, Retail operations or in Sampling.

Textile and Garments

Traditionally, India’s textile businesses enjoyed lower labor costs and significant government support (capital subsidy, duty drawbacks etc.) However, things have changed in recent years, and the industry is now losing its edge to countries such as Bangladesh and Vietnam! Find out how Indian companies can regain their superiority in the global markets

Textile & Garments

The textile company built a decisive competitive edge with existing resources; it achieved OTIF at 95%, reduced production lead time by 25%, and more.

Raymond Luxury Cottons Ltd

A leading global producer revolutionised its operations in just eight months! The result: month-end spikes were eliminated, and on-time delivery improved from 30% to 95%!

A major vertically integrated linen exporter

This leading electrical cables and wires manufacturer achieved remarkable speed in project execution by seamlessly aligning purchase and material deliveries with site requirements: 66% faster PO completion and a 57% reduction in delivery lead times.

KEI Industries Ltd

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.

Engineering & Construction

Defying severe weather conditions in a rain-ravaged location, the company implemented rapid project execution model to fast-track the setting up of a new manufacturing plant in just eight months, against the industry norm of 12-14 months.

Fleetguard Filters Pvt Ltd - Manufacturing Plant

Liberty Shoes’ remarkable transformation to a 'pull'-based manufacturing and distribution resulted in more than 97% availability at its central warehouse, likely among the best in the industry.

Liberty Shoes Ltd

Liberty Shoes Ltd.

Using Rapid Project Execution solution, the company built a 30,000-spindle plant in just 9 months, smashing the 12-month industry benchmark.

Trident Group

Results achieved by this office furniture major include: OTIF jumped to 90%, a 30% reduction in lead times, and a 30% increase in sales.

Godrej Interio - Office Furniture

Jindal Stainless’ strategic shift to a 'pull'-based manufacturing model resulted in a 33% reduction in standard product lead times and a jump to more than 90% on-time delivery.

Jindal Stainless Ltd

After streamlining its operations, sales growth jumped by 50%, achieved 100% on-time delivery, and improved inventory turns by 50%.

Filtrum Polymers Pvt Ltd

VIP achieved 90+% stock availability at its branches, resulting in a 20% boost in same-store sales growth.

VIP Industries Ltd

VIP Industries Ltd. | De-stressing supply chain and sales with TOC | Vector Consulting Group

This electrical equipment company achieved these stunning results after implementing 'pull'-based solutions: a 150% improvement in OTIF and a more than 100% improvements in profits and ROCE.

Raychem RPG (P) Ltd

This men's fashion retail brand adopted an innovative rapid supply chain model, resulting in 80% daily store inventory availability and a 40% increase in sales.

Blackberrys

Blackberrys | An innovative approach to apparel supply chain

Using the Rapid R&D Solution, LMW improved the contribution of new products to sales by 3X.

LMW Ltd - Machine Tool Division - New Product Development

LMW Ltd. - Machine Tool Division: New Product Development

By tackling cognitive overload and multitasking in pharma QC labs, Lupin Ltd. reduced invalid OOS by 46% and lab incidents by 70%, releasing 15% lab capacity while improving analyst productivity and work-life balance.

Lupin Ltd

Lupin Ltd. - Building a world class lab

Vector’s pharmaceutical consulting practice offers solutions for organizations involved in pharmaceutical research &amp; development (R&amp;D), production, export, and distribution of medicines helping them address ongoing challenges or constraints in operations, R&amp;D, distribution, or the management of QC labs.&nbsp;Vector’s innovative solutions have helped Ajanta Pharma, Lupin, and Strides resolve their lab quality issues, reduce R&amp;D lead time and improve delivery performance while enhancing the productivity of resources.

Organisations working in the area of life sciences, especially those dealing with research, development, production, export or distribution of pharmaceutical drugs and formulations, can have an ongoing challenge or a constraint in Operations, Research & Development or in Distribution to International Warehouses.

Life Sciences

While the pharmaceutical industry faces many unique challenges, the fairly healthy gross margins this industry enjoys have made it possible for businesses to thrive during good times and remain viable even through tough times. However, with unprecedented and increasing competition, business complexity, velocity and volatility of markets, companies are now struggling with stressed supply chains, profit erosion, and continuously lowering returns.

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Ajanta Pharma implemented a new dynamic, pull-based scheduling approach across its operations and supply chain, releasing 15%-20% capacity, and improving OTIF performance at its US warehouses to 99%.

Bahasa Ajanta Pharma Ltd

Ajanta Pharma Ltd | Agile pharma operations

Ajanta Pharma Ltd

It is a leading supplier of critical process equipment and systems to the global chemical and pharmaceutical industries.

GMM Pfaudler Ltd

ENPRO Industries significantly strengthened its operations after implementing Flow Management principles, boosting sales growth by 47%. This transformation also achieved stable output, faster execution, and improved synchronisation of resources.

ENPRO Industries Pvt Ltd

ENPRO Industries, a market leader in the design and manufacture of mechanical fluid systems and process equipment, faced significant challenges in their custom-engineered multi-project environment:  -Long and variable lead times -Resource & material synchronisation issues -Frequent rework and delays -Limited system visibility  So, how did ENPRO turn things around and achieve remarkable improvements in sales growth, output stabilisation, and inventory management?  Curious to know? Discover how ENPRO unlocked impressive results!

Revitalising the growth engine. Enpro– a leading Engineer-to-order (ETO) company

Revitalising the growth engine. Enpro - a leading Engineer-to-order (ETO) company

JK Tyre supply chain boosted availability by 30%, OTIF to 90%, cut inventory days by 8%, and lowered detention costs by 21%, driving efficiency and growth.

JK Tyre & Industries Ltd

Transforming consumption based supply chain for growth at JK Tyre

Mallcom India Ltd., a ₹450-crore Personal Protective Equipment (PPE) manufacturer, improves operational performance across its garment, shoe, and glove sectors, boosting efficiency, sales, and customer satisfaction across both domestic and export markets.

Mallcom India Ltd.

Breaking the bottleneck: Mallcom's shift to predictable, scalable operations

A leading manufacturing company optimised blast furnace shutdown process, reducing project timelines by 36%, improving resource productivity, minimising downtime, and achieving cost savings through better project flow and management.

Kirloskar Ferrous Industries Ltd.

Accelerating shutdown projects with Flow Principles​

India Nippon Electricals Ltd. (INEL), a ₹750-crore company and a leading supplier of electrical and electronic sub-systems for the two-wheeler industry, streamlined its operations with a global priority system, overcoming delays and increasing New Product Development (NPD) by 35%, while maintaining market leadership in the auto industry.

India Nippon Electricals Ltd

Aditya Auto transformed its supply chain operations, cut inventory days by 57%, improved cash flow, achieved 100% on-time delivery, and boosted productivity by up to 40%, without additional capital investment.

Aditya Auto Products & Engineering (India) Pvt Ltd - Operations

Transforming operations: Excellence in delivery and working capital management

MSP Steel &amp; Power Ltd is a leading Indian manufacturer of sponge iron and a trader in steel products. The company operates manufacturing facilities in Raigarh, Chhattisgarh, and Keonjhar, Odisha. Its product portfolio includes, TMT bars and structural steel, which are primarily distributed through retail dealers in Chhattisgarh, Uttar Pradesh, Odisha, Jharkhand, Gujarat, and Maharashtra.&nbsp;Commodities such as steel are almost fungible, meaning each unit, irrespective of who produces it, is virtually identical. As a result, producers of such products are forced to be ‘price takers’, compelled to accept prevailing market prices on any given day. Furthermore, the bulkiness of steel products drives up logistics costs when they are sold farther from their manufacturing locations.&nbsp;To improve the bottom line, MSP partnered with Vector Consulting Group to boost TMT and structural steel sales volumes in its home markets near the Chhattisgarh plants, where the company enjoys higher realisations. After implementing pull-based operations and distribution, increasing the frequency of servicing dealers, and introducing a unique loyalty programme for dealers, MSP not only achieved a significant increase in immediate sales in its target markets but also secured the loyalty of most dealers across the region.&nbsp;

MSP Steel &amp; Power Ltd is a leading Indian manufacturer of sponge iron and a trader in steel products. The company operates manufacturing facilities in Raigarh, Chhattisgarh, and Keonjhar, Odisha. Its product portfolio includes, TMT bars and structural steel, which are primarily distributed through retail dealers in Chhattisgarh, Uttar Pradesh, Odisha, Jharkhand, Gujarat, and Maharashtra.&nbsp;Commodities such as steel are almost fungible, meaning each unit, irrespective of who produces it, is virtually identical. As a result, producers of such products are forced to be ‘price takers’, compelled to accept prevailing market prices on any given day. Furthermore, the bulkiness of steel products drives up logistics costs when they are sold farther from their manufacturing locations.&nbsp;To improve the bottom line, MSP partnered with Vector Consulting Group to boost TMT and structural steel sales volumes in its home markets near the Chhattisgarh plants, where the company enjoys higher realisations. After implementing pull-based operations and distribution, increasing the frequency of servicing dealers, and introducing a unique loyalty programme for dealers, MSP not only achieved a significant increase in immediate sales in its target markets but also secured the loyalty of most dealers across the region.

In the steel commodity business, the price fluctuates on a daily basis. Players cut prices to boost sales. Many companies have tried branding exercises using popular Bollywood actors only to discover that any differentiation they achieve is fleeting.

We did not go that route. Firstly, we chose to focus on only those markets where we would be most viable. Here, we connected with all the dealers, not just the big ones. Next, we crafted a win-win offer for them, worked on improving their ROI. We achieved this by enhancing availability, shortening and stabilising supply lead time, and introducing a reward programme called Bandhan.

Steel is a commodity business where players mostly compete on price. How did you differentiate yourself as a company?

Discover how MSP Steel achieved 98%-99% OTIF performance, reduced dealer lead times from 7-10 days to 48 hours, and increased sales of structures by 100%.