
Looxent undertook a project to strengthen the competitiveness of a distribution business—specializing in cable manufacturing, installation, and operation—by optimizing production efficiency and introducing specialized manufacturing bases. The project centered on analyzing sales performance, customer segments, production processes, and facility capabilities for key product groups within the distribution portfolio. By doing so, we identified the most effective specialization strategies and developed executable action plans that aligned product strategy with customer needs and improved market competitiveness.
In the power sector, distribution operations serve as critical infrastructure underpinning national economic growth and industrial development. However, intensifying competition, rising raw material costs, and increasingly sophisticated customer requirements challenge the sustainability of traditional production and operating models. Against this backdrop, Looxent’s project focused on maximizing manufacturing base efficiency, reconfiguring product portfolios, and reducing operational expenses through targeted specialization initiatives.
Product Grouping and Strategic Tiers
We classified products based on their application, customer type, production processes, and facility attributes. From this analysis, we identified 113 key product groups and evaluated their value-added potential and feasibility. We then organized them into tiers. For example, Tier I products—high-voltage and ultra-high-voltage lines—cater to customers demanding stringent technical and quality standards, while Tier IV focuses on lower-voltage, price-competitive products aimed at cost-sensitive customer segments.
Defining Specialization Strategies
By combining tier-specific characteristics with the capabilities and strengths of the three main manufacturing plants, Looxent established a clear roadmap for specialization. For instance, we recommended producing high- and ultra-high-voltage lines at a facility best suited to meet technical requirements, while lower-value products were shifted to OEM production to improve operational efficiency.
Optimization, Simulation, and Implementation Planning
To refine our specialization strategies, we developed simulation models that tested various scenarios to maximize productivity and cost efficiency. We created phased transition roadmaps, outlined investment schedules, and integrated S&OP (Sales & Operations Planning) procedures to ensure cohesive coordination across production, quality assurance, and sales functions.
This project not only enhanced the distribution business’s competitive edge but also drove significant improvements in production and operational efficiency. By aligning product portfolios with customer demands and leveraging each manufacturing base’s strengths, we achieved cost savings and elevated customer satisfaction. This approach offers a market-oriented strategy that positions the company for long-term, sustainable growth.
Looxent undertook a project to strengthen the competitiveness of a distribution business—specializing in cable manufacturing, installation, and operation—by optimizing production efficiency and introducing specialized manufacturing bases. The project centered on analyzing sales performance, customer segments, production processes, and facility capabilities for key product groups within the distribution portfolio. By doing so, we identified the most effective specialization strategies and developed executable action plans that aligned product strategy with customer needs and improved market competitiveness.
In the power sector, distribution operations serve as critical infrastructure underpinning national economic growth and industrial development. However, intensifying competition, rising raw material costs, and increasingly sophisticated customer requirements challenge the sustainability of traditional production and operating models. Against this backdrop, Looxent’s project focused on maximizing manufacturing base efficiency, reconfiguring product portfolios, and reducing operational expenses through targeted specialization initiatives.
Product Grouping and Strategic Tiers
We classified products based on their application, customer type, production processes, and facility attributes. From this analysis, we identified 113 key product groups and evaluated their value-added potential and feasibility. We then organized them into tiers. For example, Tier I products—high-voltage and ultra-high-voltage lines—cater to customers demanding stringent technical and quality standards, while Tier IV focuses on lower-voltage, price-competitive products aimed at cost-sensitive customer segments.
Defining Specialization Strategies
By combining tier-specific characteristics with the capabilities and strengths of the three main manufacturing plants, Looxent established a clear roadmap for specialization. For instance, we recommended producing high- and ultra-high-voltage lines at a facility best suited to meet technical requirements, while lower-value products were shifted to OEM production to improve operational efficiency.
Optimization, Simulation, and Implementation Planning
To refine our specialization strategies, we developed simulation models that tested various scenarios to maximize productivity and cost efficiency. We created phased transition roadmaps, outlined investment schedules, and integrated S&OP (Sales & Operations Planning) procedures to ensure cohesive coordination across production, quality assurance, and sales functions.
This project not only enhanced the distribution business’s competitive edge but also drove significant improvements in production and operational efficiency. By aligning product portfolios with customer demands and leveraging each manufacturing base’s strengths, we achieved cost savings and elevated customer satisfaction. This approach offers a market-oriented strategy that positions the company for long-term, sustainable growth.