The brief from the owner was, that while she had a great business it was completely consuming her. We identified a key problem with the decentralised nature for the storage of raw ingredients leading to her spending considerable time collecting these from several storage sites each day and delivering them to the main manufacturing plant for production. This not only meant driving around Auckland to collect and deliver it also involved the loss production time and importantly the cost of maintaining several storage sites for the storage of ingredients. the problem arose from the businesses own success as it grew it simply ran out of storage space and started to take of new spaces as required. The owner understood the problem but didn’t have the time to find a solution.
The solution was to find a new larger factory site with ample storage for both now and the future as well as plenty of space for production. An important benefit was to also look to redirect current lease costs into a site the the business owner could own over time. This meant redirecting current third party lease costs from the various sites being used to pay down a loan on a factory and office space which was purchased in South Auckland. The added benefit was that with the labour force largely living in South Auckland, the staff were closer to home and as a result excited by the final move.
The outcome was the efficiency gains from consolidation in terms of management time, production time as well as the benefit of lease costs being redirected to paying down owned as opposed to lease premises.