Cipriani has manufactured heat exchangers for customers since 1987. It is a delicate product often purchased “last minute” because industries never need to order it in large quantities.
As a result, delivery performance and value for money customization constitute the two main success factors in the heat exchanger market. Customers need and want goods quickly and on time. Keeping a short chain between factory and end user is therefore very challenging – explaining why it is at this level that Cipriani tries to differentiate itself from the competition. The company’s market leader strategy is based on quicker responses to customer demand.
As an agile company, Cipriani knows how to cope in an ever-changing environment. In March 2019, for instance, it created a new planning function based on principles like speed and reliability. The function separates sales administration from manufacturing, smoothing out production operations to ensure that customer orders are fulfilled on the right delivery date.
Cipriani has developed specific communications to publicize the new process’ usefulness. This includes an “exchange for good” tagline that clearly refers both to the product and to the positive collaboration that exists between employees, customers and suppliers.
Following in-depth discussions with the production teams – and given the strong commitment from management - everyone in the company is on-board with the change today.
The planning function’s implementation was a success. In less than one year, on-time deliveries rose from 88% to 98.5%. Expressed in number of days, this equated to a decline from seven to six. All of which means the company enjoys a reputation that is better than ever. Customers never feel a need to question Cipriani’s reliability and capabilities – they are confident that it will be able to satisfy their needs in a timely fashion.
It is sustainable value that Cipriani generate. The company today reacts more efficiently than ever to peaks in production – an improvement from which everyone benefits. Employee well-being is also enhanced: production teams are less stressed; and personal relations have improved markedly, within the sales teams but also up and down the supply chain!