How Summit Consulting Transformed a Mid-Sized Manufacturing Firm in Kenya

At Summit Consulting Ltd., we’ve had the privilege of helping numerous organizations navigate the complexities of digital transformation. One such success story involves a mid-sized manufacturing company that was facing significant challenges in a rapidly changing market.

For context, The company specializes in producing various steel products for light and heavy construction projects; with clients all over Africa. Despite having a strong legacy and a solid customer base, they were experiencing:

1. Stagnating Sales. Over the past few years, their sales have remained the same, despite the increase in marketing and promotions efforts.  Competitors were leveraging digital technologies to offer better prices and faster delivery times. Our preliminary analysis of the sales trends indicated a high uptake of new customers but poor repeat businesses; indicating a high churn rate.
2. Manual Processes. Many of the company’s operational processes were manual, leading to errors, delays, and increased costs. Inventory management was particularly problematic, resulting in overstocking some materials while facing shortages in others.
3. Wide market potential, with limited reach. Their customer base was largely regional. The company lacked a strong online presence for its size and ambition, which hindered its ability to attract international clients and partnerships. Even then, the few clients they managed to acquire, could not retain them due to their manual approaches.  
4. Different departments operated in isolation, using disconnected systems that didn’t communicate with each other. This fragmentation made it difficult to make informed, company-wide decisions.

Challenges

The leadership recognized that the status quo was not sustainable. They had to do something. However, they faced several challenges:

1. Employees were accustomed to traditional ways of working and so they were resistant to change. There was scepticism about new ways of doing things and fear of job displacement. They did not know what next.
2. The company lacked the in-house expertise to plan and execute a digital transformation strategy. As a manufacturing company, priority had been put on factory workers and less effort on skilled tech-savvy employees. However, to compete, this needed to change through awareness of the need for highly skilled workers as well as factory floor workers trained to embrace technology to make work better and more enjoyable.
3. As sales were stagnating, there was apprehension about investing in new ways of doing things, more so technology, which even some leaders thought was a scheme to waste money since technology “cannot carry steel bars” in their own words and therefore could not guarantee returns. We had to find ways to create awareness among staff, especially leaders to change their perspective on technology.
4. During the initial assessment, we noted that the company had existing machinery and software that were still functional but outdated. Replacing such capabilities entirely wasn’t feasible. We had to figure out a way of gradual transition without overtrading. We had to explore ways of adopting technology in a way the company was not constrained by the cashflows it needed for working capital.

The Summit Coon.nsulting Ltd’s Approach to Digital Transformation

We partnered with the company to design and implement a tailored digital transformation roadmap. Our approach included, ACT, assess, change and transform.

1. Assessment, a 360-degree assessment.

Our transformation projects start with an inception meeting with the true economic buyer, the folks who feel the pain of stagnating business, the real patient who needs treatment, not the caretakers. After listening to the business challenges affecting progress towards the vision and ambition, we requested and received several documents. Thereafter, we conducted a thorough analysis of their existing processes, technologies, and organizational structure. Engaged with employees across all levels to understand their concerns, needs, and ideas. And also evaluated industry trends, competitor strategies, and potential market opportunities. We took a lot of time to understand the context in which the company operates including analysis of its strategy, and capabilities and interviews with key staff and select customers and suppliers to understand their business model, how value is created, delivered and sustained.

1. Strategic Roadmap documentation.

Based on our assessment, we crafted a step-by-step plan that prioritized high-impact areas:

Digitization of the Supply Chain, specifically implementation of an ERP System. We recommended an Enterprise Resource Planning system to unify all core processes, including procurement, manufacturing, sales, and finance. We noted the company had several Steel products SKUs. We recommended the deployment of IoT sensors and barcode systems to track inventory levels in real-time, reducing overstock and stockouts by 40%.

Proposed the creation of an online platform for suppliers to manage orders, deliveries, and payments, enhancing collaboration and reducing lead times.

Recommended the adoption of Data Analytics. Started with the consolidation of data from various departments into a centralized database and recommended the use of business intelligence tools with dashboards and reporting tools that provided insights into production efficiency, sales trends, and financial performance. Identified staff for training in machine learning algorithms to forecast demand, optimize inventory, and schedule maintenance proactively.

Enhancing Market Reach , including a) Redesigned their website to be more user-friendly and informative, highlighting their capabilities and product range. Developed an online ordering system that allowed clients to customize orders, check inventory availability, and track shipments. Launched targeted marketing initiatives using SEO, content marketing, and social media to reach new customers domestically and internationally.

Change Management and Training; covering Employee Engagement.  Held sessions to educate staff about the benefits of digital transformation and how it would positively impact their roles and established channels for employees to voice concerns and contribute ideas. For skills development on the job, we provided training on new systems and tools, ensuring employees were confident and competent and encouraged a culture of ongoing education, offering resources for employees to upskill.

Phased Implementation outcomes

The transformation project delivered results.

Our approach was slow but sure. Started with small-scale implementations in select departments to demonstrate quick wins and build momentum. Ensured that solutions could be scaled company-wide without significant overhauls.

The transformation lasted about 3-4 years and yielded significant benefits, Operational Efficiency Increased by 30% through reducing downtime as a result of predictive maintenance minimized equipment failures and streamlined processes thanks to automation eliminated manual errors and accelerated workflows.

The Company Sales Growth and Market Expansion,  online presence attracted clients from different regions and industries. The ability to offer tailored products increases customer satisfaction and loyalty. Real-time analytics enabled the leadership to make informed decisions quickly. The company could respond faster to market changes and customer demands.

Cost Savings,  Optimized inventory levels led to significant savings. Automation and process improvements reduced overheads.

Key Success Factors

1. The executive team was actively involved, setting clear visions and motivating the organization. The strong leadership commitment created the right tone at the top; and got all staff involved.
2. By involving staff from the beginning, we fostered a sense of ownership and reduced resistance. Digital transformation projects should not leave anyone behind. We started the project by creating massive awareness. We had done a thorough assessment. We requested leadership to conduct a town hall, where we showed people where the business was vs the competitors and what would happen if they did not change. This created a sense of urgency and clarity of the problems at hand. Contrary to the belief that technology would take people’s jobs, we showed them how the company risked declining if they did not change and that all staff needed to be involved to protect their jobs and careers. It worked like magic.
3. Instead of off-the-shelf products, we customized solutions to fit their specific needs and constraints. We took time to source for the vendors of the various services we needed. The focus was on people who were coming for the long term.  One of the best decisions we made was the ERP provider selection. We looked for a company with a local presence, and local experts and their availability. We crafted a contract that protected the company in case of failure of the vendor to perform their roles. This meant that the project implementation was slow; but sure. We had a key ERP expert retained on-site for ongoing implementation. Although it was expensive at the start, it made a lot of sense and saved the company a lot of money in the long term. Common mistakes were anticipated and avoided thanks to the insights of the expert. For example, we agreed on the gradual implementation of modules; with celebrated milestones for each module go-live. This had the effect of increasing awareness.
4. Provided ongoing assistance post-implementation to address issues and refine processes. To date, we continue to support the company with strategy and high high-performing culture. This is what impactful consulting is all about, we continuously bring fresh external perspectives into the business.

How We Helped

Our role was a “software” one of sorts. We:

1. Offered insights based on industry best practices and emerging technologies. Our current state assessment helped create a maturity analysis that provided the desired state, the gap to close and how to close it. This implementation roadmap, gave clarity to leaders and staff alike, therefore embracing the project.
2. Coordinated efforts across different departments and external vendors to keep the project on track. We helped lead discussions, asked the right questions and got people involved which created ownership.  We led change management efforts.
3. Guided, processwide, the setup, configuration, and integration of new systems.  We made sure project management was top-notch. This helped avoid project delays, scope creep and poor-quality implementation. The slow, but sure approach was good.
4. Equipped their workforce with the necessary skills to utilize new tools effectively.
5. Established KPIs and provided analytics to measure progress and impact.

Throughout the project, we learned that flexibility in adjusting strategies based on feedback and changing circumstances leads to better outcomes is critical. Regular updates and transparent communication build trust and keep everyone aligned. Engaging with all staff early at a town hall meeting, having a portal where we provided all information about the project and more so, having a dedicated contact person to address all concerns was a winner. Many staff worried about their jobs would make appointments and expressed their concerns and were assured. This helped clarify rumours and unnecessary worries.  Empowered employees become champions of change, driving the transformation forward.

Your Opportunity

If your organization is facing similar challenges or looking to unlock new opportunities through digital transformation, we’re here to help.

Contact us today and get started:

• Email:strategy@summitcl.com
• Phone:+256 782 610333
• Website:summitcl.com

 Schedule a free consultation to discuss your challenges and explore how we can partner for success.