Earth Kind Inc.: Increase Efficiency to Manage Demand
Earth Kind Inc.
Odor is big business. This is apparent to anyone walking through any convenience store, shopping mall corridor or even past workplace cubicles. There is a smell for everyone and everything; there is also a way for everyone and everything to rid their immediate environment of unwanted smells. Kari Warberg, owner and founder of Earth Kind Inc., saw market potential in the scent and de-scenting industry when she started the business in 1995.
Earth Kind Inc.’s product line is a bit different than that of most competitors because all of their products and packaging are made using non-toxic, biodegradable and environmentally friendly ingredients sourced from family farms. Earth Kind Inc. is committed to providing customers with superior performing products that are safe, easy to use and biodegradable. The company’s plant-based, versus other petroleum-based, products not only benefit the environment, but also support rural areas and the agricultural industry.
The business is literally gaining more distribution points and increasing product output every day. Soon, the Fresh Cab product will bear a label that will read, “Botanical Rodent Repellent - Safe and Effective.” This addition will increase Earth Kind Inc.'s distribution by 400 percent within 1.5 years. This projected growth raised concerns about whether current equipment and staff would be able to manage the increase. Earth Kind Inc. looked to Impact Dakota for help.
Impact Dakota assisted Earth Kind Inc. by implementing a strategic plan to increase the efficiency of existing equipment and staff. The plan included centralizing operations, inventory and quality control and process standardization.
With Impact Dakota’s guidance, Earth Kind Inc. has increased their net margin by 12 percent. Inventory turnover increased, resulting in savings of $18,000 in 2006 and efficiency increases have produced $7200 in savings. Additional benefits include a reduction in time the line supervisor spent on non-essential tasks and an assembly line efficiency increase of 30 percent.