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Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Energy & InfrastructureBuilding a Robust B2C Operation System Leveraging Competitive Strength in the Special Order Market

In the special order market, which primarily serves apartment construction projects for developers, quality requirements are becoming increasingly stringent. To meet heightened customer demands for both functional and aesthetic excellence, companies must implement advanced quality control systems to minimize defects and establish processes for swift and accurate issue resolution. Achieving these goals requires a comprehensive quality verification system spanning materials and installation, combined with proactive issue follow-up processes to prevent recurrence.

As the demand for new apartment units is expected to peak in 2018, the remodeling market for older units is projected to grow, driving the expansion of the B2C market. Unlike traditional sectors, the B2C market demands shorter lead times, diverse size specifications, and rapid response capabilities. To succeed, businesses must leverage their existing expertise in quality and technology to establish efficient operational systems tailored to these requirements.

Optimizing for Market Shifts

The client, a vertically integrated leader in extrusion, assembly, and installation for PL windows, has built an operational system optimized for the apartment special order construction market. However, with new apartment construction declining and the number of older housing units rising, the client recognized the need to restructure its operations. To maintain a stable share in the special order market while enhancing its competitiveness in the B2C market, improvements were required in cost, inventory, lead time, and quality management.

Looxent led a comprehensive Value-Up project encompassing cost efficiency, inventory and lead time optimization, enterprise-wide quality enhancement, and the development of a B2C operation framework. The project also addressed capacity optimization across extrusion, assembly, and installation operations.

Laying a Stable Foundation in the Special Order Market

The first priority was to maximize cost competitiveness through optimized purchasing strategies. Materials and outsourced purchases were segmented into specific sourcing groups, each with tailored cost-reduction approaches. One highlight was the optimization of dry blend recipes for extrusion, which improved profile performance and quality while reducing input costs.

Additionally, to address internal inefficiencies, the team identified and reduced delays and unnecessary inventory losses throughout the production and installation processes, building a stable Value-Up foundation.

Differentiation in the B2C Market Through Quality and Lead Time

To leverage the streamlined quality management and defect-handling processes from the special order market for the B2C business, Looxent redefined the company’s enterprise-wide quality system. Key improvements included:

  • Establishing quality gates for each process phase, specifying inspection criteria and standards.
  • Implementing clear roles and responsibilities (R&R) frameworks to support efficient execution.

Furthermore, the B2C operation was transformed with a new product lineup and an optimized inventory system. This allowed the company to reduce lead times from the standard 45 days to under 5 days for installation completion, ensuring swift order fulfillment.

Optimizing Capacity Across Core Operations

Even if individual areas of the value chain, such as development, procurement, quality, production, and installation, are optimized, inefficiencies can arise without seamless integration. To address this, Looxent focused on optimizing operations across production and installation, ensuring collaborative efficiency.

In production, the team restructured planning systems to enable agile capacity management by optimizing unit labor requirements for different product types. For outsourcing operations such as subcontracted manufacturing and installation, Looxent implemented an annual workload allocation schedule to strengthen partnerships with key suppliers. A performance evaluation system for contractors was also established, improving supplier capabilities and ensuring operational excellence.

Delivering Tangible Results and Preparing for Sustainable Growth

Through its comprehensive Value-Up activities, the client achieved annual cost savings equivalent to 5% of total purchasing spend. Simultaneously, the project established optimized internal and external capabilities, securing a competitive advantage in the emerging B2C market.

The client’s executives noted, “After years of ad-hoc operations, the Value-Up initiative has enabled us to build a structured and sustainable system. Employees now recognize that the organization and its systems, not just individuals, drive our operations.”

The Universal Imperative of Operational Innovation

Operational innovation to achieve short-term results, combined with sustainable systems for long-term growth, is a critical challenge for organizations across industries. Looxent’s project with this client demonstrates how tailored Value-Up initiatives can address both immediate operational inefficiencies and strategic market shifts, delivering lasting competitive advantage.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.