Case Study for GSCS – Concerning Services Rendered to Weathermatic, Inc. during 2012

At the end of 2012, GSCS had delivered significant cost savings to Weathermatic, including reducing Weathermatic’s costs by 24% within the first three weeks of engagement, and radically improved supply chain processes.

Weathermatic has stated that GSCS® handled these initiatives with the utmost integrity and would emphatically recommend their services to other companies, especially those involved in technology sectors.

Weathermatic’s Dilemma
During 2012, Weathermatic, Inc. went through enormous corporate changes, both in its product offerings and supply chain design. The principal change was caused by the introduction of Weathermatic’s new Smartlink irrigation management system.

The Smartlink system includes advanced electronic components designed to determine current, local weather, adjust irrigation patterns based on these weather readings, and relay information in real time to users online through cellular data networks.

The addition of these complex technology components to their large irrigation systems necessitated deep changes throughout Weathermatic’s existing supply chain.

The task of rebuilding Weathermatic’s supply chain was made more complex by two goals that the company set forward at the beginning of the year.

Over the last 70 years of manufacturing irrigation systems, Weathermatic had begun sourcing some of its components from off-shore vendors; the company now wanted to bring the entirety of its supply chain to the U.S.

During this time, Weathermatic also came to the conclusion that inefficiencies existed in their current value stream and deep cost cutting might be possible.

One area of particular concern, with regard to costs, came from witnessing startling price increases from its long-term suppliers. Year on year, vendors had consistently increased their prices between 2-4%.

Having worked with some of these same suppliers for more than 18 years, Weathermatic was now paying substantially more to manufacture its products than initially set out. Weathermatic believed a savings of $800,000 for 2012 was possible, assuming the issued supply prices could be reconciled and other cost cutting techniques could be employed.