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did the five whys analysis , we needed to change how our customers required their orders and delivery met . We had to know when they were coming and their specific demands .
But most of our customers didn ' t plan and were very poor with stock management . So we had to organize them and teach them how to keep a standard stock and to make orders few days before it got finished . We had to teach them about stock cover days and the importance of order planning . We also called them up when we suspected they were about to deplete their stock .
EABL made serious operational strides when they implemented standardized deliveries to their distributors in the early 2000s . Distributors had to carry a standard stock at any one time . That allowed EABL to plan backward . They only produced and stocked what was required to meet a known standard supply at the distributors ' level .
EABL would monitor the distributors ' inventories and automatically deliver what was needed to top up stores back to standard . After customers ' demand was standardized , EABL could plan and subsequently standardize all other operations from finished goods back to
raw materials supply .
At Unga Uganda , I learned one thing , you must organize your customers to serve them better . Trying to accommodate all customers ' abrupt demands may score high in terms of customer responsiveness but miserably fail in overall cost reduction , inefficiencies , and customer complaints .
Changing customers ' behaviour is a hard job and especially when the customers have options . But establishing effective and sustainable sales is not all about taking all the dirt customers sweep to your doorstep . Companies cannot cure customer disorganization and inefficiencies by bending backward to shoulder the burden . Customer inefficiencies create an actual cost in the value chain , and they must be deliberately addressed .
As the market leader , Rhombus , the readymix company that I work for , has taken the responsibility of shaping customers ' needs and expectations to serve them better . Rhombus has to work closely with all the customers to plan together for a win-win service outcome . Therefore , we have established Key Account Managers who work closely with all our customers in establishing joint concrete delivery schedules . Standardizing customer sales orders is necessary for backward resource planning and mobilization . Otherwise , inefficiencies , unnecessary costs , and customer complaints abound .
Kaizen principles teach us how to standardize operations for improved efficiencies and reduced costs . That only works when demand is standardized first and , afterward , all other backstage operations .
So , when your daily sales volumes experience wide variations and are not within the desired volume range , then think standardization . And it all starts with organizing your customers , building strong bonds , and raising switching costs . Therefore , when a customer doesn ' t wait for an extra day for you to serve them better , re-check the affection barometer and ignore any other excuse .
Herman Githinji is a Management Consultant and a Director at Rhombus Ready Mix Concrete Company . You can commune with him on this and related issues via email on : Hermangithinji @ gmail . com .
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