CHALLENGE

Transitioning from manual operations to a cutting-edge digital system at terminaling services company. Overcoming resistance to change and inefficiencies in inventory and quality control.

The company faced several major hurdles. Employee resistance to change was a significant issue, with workers accustomed to performing tasks manually, including inefficient methods such as physically climbing over pallets to locate raw materials and attaching hand-written pallet tags. Furthermore, maintaining consistent quality control was becoming increasingly difficult, given the outdated system in place. The reliance on manual processes was also slowing down production and material planning, making the company less efficient and prone to errors, especially when scaling operations. The rapid increase in business during the COVID-19 pandemic further compounded these issues, as the company’s processes were ill-equipped to handle such growth.

SOLUTION

Implementing real-time tracking, automated quality control, and standardized business processes.

To address these challenges, the company implemented a comprehensive digital system. This transformation began with the introduction of real-time inventory tracking, which replaced manual checks with a digital control panel that provided up-to-date information on inventory levels. The implementation of automated quality control through Statistical Process Control (SPC) ensured consistent monitoring of production quality every 10 minutes, reducing variability and ensuring product consistency. The company also standardized its business processes across all customer accounts, which not only increased accountability but also minimized unnecessary inventory by streamlining procedures.

Additionally, the new system enhanced production planning capabilities. With faster and more accurate Material Requirements Planning (MRP) checks, the company was able to confirm delivery capabilities in real-time, significantly improving their ability to meet customer demands. A robust change management process was introduced to handle label changes and customer notifications efficiently, ensuring smooth operations even when customer specifications shifted.

RESULTS

A 15% business growth, improved inventory management, and a cultural shift toward digital adoption.

The digital transformation brought about a significant cultural shift within the organization. Employees who were initially hesitant to adopt the new tools grew to appreciate the increased efficiency and accuracy in their day-to-day work. The standardization of processes led to better inventory management, eliminating surprises and reducing the risk of overstock.

As a direct result of these improvements, the company was able to manage a 15% increase in business without sacrificing service quality. This growth, driven by operational efficiencies, positioned the company to handle additional clients and projects with ease. Furthermore, the enhanced system for tracking preventative maintenance and quality issues allowed the company to proactively address potential problems before they escalated, leading to a noticeable reduction in costs associated with poor-quality products.

SUMMARY

How embracing technology empowered this family-owned business to scale while maintaining quality.

The digital transformation undertaken by this contract terminaling, blending, and logistics company was a resounding success. By overcoming initial resistance and embracing technology, the company not only improved its operational efficiency but also laid the groundwork for future growth. The ability to adapt to modern digital systems has allowed the business to scale while maintaining a competitive edge in an increasingly complex industry.