news | winter 2010

SMOI dart men

Helping clients make the most of their assets

Every marketer knows the power of branding and the values it instills in the minds of consumers. It's not every business, however, that understands those same branding principles can be applied internally to set goals, create priorities, change employee behavior and transform the very culture of the company. LKH&S has created internal communications campaigns for a broad range of companies, and we're currently working with Leggett & Platt Store Fixtures Group to help our long-time partner solve a long-term problem.

stopSMOILeggett has been plagued by the build-up of slow-moving and obsolete inventories (SMOI) at all of its manufacturing facilities. As a result, the cost of purchasing, moving and storing these unproductive assets has been a continuous drag on the company's bottom-line profitability.

LKH&S developed an internal communications campaign to raise awareness of the problem and encourage the exchange of both information and existing inventory among the company's eight branches. By utilizing existing assets, Leggett will not only cut procurement costs but also reduce write-offs and inventory costs.

Branded as the MILE program (Managing Inventory Levels Effectively), the campaign uses familiar road sign graphics as a theme, communicates the importance and urgency of the program, overcomes deeply entrenched behavior and provides a desired course of action.

SMOI ads
The MILE program uses familiar road signs to express its goals: slowing, limiting and stopping SMOI.

The campaign targets key salespeople, designers, manufacturing and purchasing personnel. Kick-off meetings are currently underway to introduce the program at each L&P branch, and will be followed by a series of posters and e-mails that LKH&S created to the communicate specific actions required to reduce SMOI and improve profitability.

The program has just launched, so it's too early to measure the results on inventory levels — but two things are for sure: Leggett & Platt personnel know that stopping SMOI is a top priority — and they all know the actions required of them to stop it.

<back