Operational Efficiency – TPF (Tiga Pilar Familia)
PT Tiga Pilar Familia is an importer and distributor specializing in fashion items, including hair clips, headbands, wallets, and other accessories. The company is also an authorized distributor for products under the brands Roche Ornament, Kamino.id, and Mimori.
Case Details
Clients: Havanna
Tags: Strategist
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Industry
PT Tiga Pilar Familia is an importer and distributor specializing in fashion items, including hair clips, headbands, wallets, and other accessories. The company is also an authorized distributor for products under the brands Roche Ornament, Kamino.id, and Mimori.
Client Challenge
Tiga Pilar Familia is currently facing challenges in expanding its business. Before proceeding with the expansion, an analysis of operational readiness was conducted to ensure the business can support this growth. The analysis revealed operational issues, including the absence of a warehouse management system and the reliance on manual operations. These challenges have led to significantly high operational costs and decreased customer satisfaction due to delayed shipments and other human errors.
Strategy Implemented
Various operational strategies have been designed to enhance efficiency. One key strategy involves the implementation of a New Warehouse Management System (WMS) through the integration of software and hardware technology, such as scanners, and its seamless implementation without disrupting ongoing operations.
The selection of this strategy was analyzed using the BP CethoStrat Framework, which evaluates the impact based on multiple criteria, including cost efficiency and the industry-standard systems already adopted by other companies.
Execution Process
The New Warehouse Management System strategy is divided into three phases: InBound (procure-to-pay), Inventory, and OutBound (Order-to-Cash).
Each phase incorporates key systems:
Challenges Faced During Execution
The implementation poses significant challenges. Tiga Pilar Familia faces the task of moving a large quantity of goods to a new warehouse. Upon evaluation, the current layout system is insufficient, prompting BrandPartner to design a new warehouse, calculating item sizes and storage capacity.
Additionally, the need for a seamless implementation without significant disruption adds to the complexity. The process requires meticulous execution, with each activity carefully managed before moving on to the next. As a result, the full implementation of the new system is expected to take up to six months.
Long-term Impact
With the new operational system, Tiga Pilar Familia will be well-positioned to execute its business expansion strategy, significantly boosting revenue through enhanced speed and accuracy in operations. The system will ensure that even a substantial influx of new customers will not disrupt ongoing operations.
Client Feedback
Tiga Pilar Familia is satisfied with the operational system proposed by BrandPartner and has decided to implement it without any revisions. The comprehensive day-to-day implementation strategies have been well-received, and Tiga Pilar Familia is confident that these strategies will not negatively impact their existing business processes.
Key Learnings
A Business Expansion Strategy must align with operational readiness. Manual operational systems that lack comprehensive data analysis will be inadequate to meet increased revenue targets. Emphasizing internal efficiency, operational effectiveness, and the speed and accuracy of the warehouse management system can be successfully implemented in other companies with high ambitions for expanding market share to be Market Leader in any industry.
Supporting Data
Summary
Tiga Pilar Familia is implementing a new Warehouse Management System (WMS) to support business expansion. This system, divided into InBound, Inventory, and OutBound phases, involves optimizing layouts, digitalizing processes, automating quality checks, and integrating WMS with ERP. The implementation faces challenges, including the large-scale relocation of goods and the need for a seamless transition, expected to take six months. The new system is designed to handle increased customer demand without disrupting operations, enabling significant revenue growth. Tiga Pilar Familia fully accepts BrandPartner’s strategy without revisions, confident it will enhance efficiency and accuracy in their operations.
