Continuous improvement is, well, continuous.

And often, the improvements with the biggest impact come from looking beyond the obvious, questioning assumptions, and seeking out external expertise when needed. 

The following case studies show how two Canadian companies embraced this philosophy to achieve remarkable results.

Case Study 1 – Savings in Unexpected Places

An aerospace parts manufacturer based in the GTA was doing well but, as always, was looking around the corner for what was coming next. A 40-year-old family run company, they had quietly built up a reputation for innovation and quality with their customer base. Management believed that continuous improvement isn’t just a catchphrase. It’s a mindset and an integral part of their culture.

So when they saw the surge in business during the peak C OVID era start to abate, they began to plan for potentially leaner times ahead. And one of their strategies was to re-evaluate all of their costs, including fixed costs.

That’s where ERA Group came in. Mario Jelic, a Strategic Partner and ERA Group (Expense Reduction Analysts) Consultant, helped them review a few basic costs many companies take for granted: w aste services (the blue bins behind the factory), janitorial, and uniforms.

Each of these cost centers is important to the business mission , but usually an afterthought. Collectively, they represented an annual spend that was less than 1% of the revenues. And besides their relatively minor cost, they quite frankly aren’t very ‘sexy’.

So why bother? Aren’t there more important things to do?

Not true. Management has always fervently believed in continuous improvement and cost minimization. With ERA’s help, the company was able to find savings of over $120,000 per annum in those three ‘boring’ cost centers.

Better yet, the service levels improved in all three, which indirectly led to better output company wide.

Case Study 2 – Freight Costs Under the Microscope

Another one of Mario’s clients, an Ontario-based manufacturer about an hour west of Toronto, also subscribed to the continuous improvement philosophy. They make residential elevators and ship them all over North America.

Management is hard-working and very smart, and they run a tight ship. But to be frank, they were missing out on an opportunity to minimize freight spend and optimize delivery schedules.

Like a lot of small and medium-sized firms, they didn’t have the resources or expertise in this area. They basically had three long-time incumbent carriers, and one employee manually called them and got quotes every time they needed to make a delivery.

With the help of ERA, they were able to save between 20% and 40% on their freight spend. That’s not an insignificant sum for a small growing company. Their freight spend in the most recent financial year was roughly $1/2 a million p.a.

Beyond that, they also were able to minimize the work required by their employees every week and also to significantly improve options for delivery. We introduced them to a transportation management system (TMS), which added a multitude of delivery options across the continent.  

Now, their freight management process is less expensive and as simple as the click of a few buttons.

External Expertise Makes the Difference

Small and medium sized businesses in Canada are facing numerous challenges today. From inflation to excessive regulations to ‘quiet quitting’ to fierce global competition, they’re in the fight of their lives. Every and any advantage helps.

In both examples cited above, a continuous improvement mentality by management, and an openness to looking for help from an outside party, led to lower fixed costs, increased financial flexibility and a competitive advantage.