| KHS USA: Up & Running |
| Manufacturing | |
| Written by Eric Slack | |
| Thursday, 31 January 2008 | |
 Michael Brancato tells us how this food and beverage equipment supplier built an empire by focusing on its clients.  Michael Brancato, President KHS USA is a subsidiary of its KHS parent company based in Dortmund, Germany. In addition to German headquarters, KHS has 12 European branches, six more in the Asia Pacific region, two in Africa, and four in the Americas, including KHS USA. The American division is based in Waukesha, Wis. and has two other locations in Sarasota, Fla. and Ft. Worth, Tex. The company’s filling and packaging equipment is used by some of the giants of the food and beverage world. Anheuser-Busch, Coca-Cola, Miller, and Coors are just a few of the recognizable brand names that use KHS equipment. No mistakes According to Brancato, KHS’s status as global leader in the industry stems from customer service. He said it has to be the company’s first priority because his clients rely so heavily on KHS equipment. If a piece of equipment breaks, KHS clients lose productivity and profit. KHS has a massive strategy around constantly improving and modernizing its customer service methods. Brancato described it as a triangle. At the points of the triangle are strategies involving parts, field technicians, and office-based technicians. No machine will operate perfectly forever. KHS and its clients both know maintenance work will eventually be needed. The catch is to make repairs as painless as possible. KHS makes sure parts are readily available to clients in a few ways. For example, KHS can keep parts in storage in Wisconsin or Florida and ship them out at a moment’s notice. The other options are for customers to keep spare parts in their plants, either by owning the part outright or by keeping them on consignment. By giving clients these options, KHS guarantees no machine will be out of service long. However, parts are only a piece of the puzzle. KHS needs to be sure it has people on staff capable of installing and fixing machines. Technicians also need to be close to the manufacturer. KHS employs 70 field service technicians and invests heavily in making sure they are qualified. As part of the training process, junior technicians are paired with senior service engineers. The company also sends technicians to its factories to learn everything about the machines firsthand, and it holds semi-annual seminars for continuing education. KHS uses outside trainers where necessary, such as consultants from Rockwell, the company that makes the computers that run the machines. Technicians are also a part of the installation team following equipment from the factory to the manufacturer to be sure the machines are ready to go. Now, Brancato said KHS is trying to bring its field service engineers’ communication skills up to the same level as their technical skills. “Field technicians might have to deal with a senior executive at one of our customers’, and their communication and technical skills aren’t necessarily in sync,” said Brancato, noting KHS hired a third party to conduct role playing to help field service engineers understand and react to different situations. “They may have to deal with an angry customer or with a service staff that isn’t up to speed. They have to be able to work with these people, and this human-side training emphasizes the communication skill set.” But not all problems require a field technician. Many times, KHS customers call into the company’s call center with a problem. Brancato said the company needed to improve its ability to track calls and make sure what his operators said matched up with what his customers said. KHS invested in a VOIP, allowing it to track every call coming into the office. There is one toll free number customers can call which is routed to the office the customer needs. With technical problems, KHS can communicate with customers over the phone or Internet and can even use video technology to look into the machine as it operates on the factory floor. “The only limitation is the customer’s reluctance to allow an outside party access to their intranet,” Brancato said. “But what we can do is provide a dedicated DSL line or cable modem and give our customers the ability to plug in and plug out.” Through these steps, the company makes sure customers have everything they need to keep KHS machines in working order. This proves customer service isn’t just a slogan to KHS. It is an integrated aspect of how the company does business. Well-rounded Continued growth comes from more than customer service. KHS invests heavily in product improvement, reinvesting 10% of revenue back into R&D efforts annually. The company works across national lines on product innovation, making sure not to duplicate efforts. If the factory in Germany is working on a new filling system, KHS USA will offer input and advice but focus its development efforts on other areas. Brancato also noted the impact of the green movement, with companies making packaging thinner and thinner as part of a sustainability strategy. KHS also develops its factory and office staff through an apprenticeship program. The company partners with local universities to bring a handful of new employees into the company every year. According to Brancato, this provides constant refreshment of talent and ideas into the company. Last year, KHS hired five individuals for entry-level positions in mechanical engineering, electrical, and business positions, and Brancato expects to do the same in 2008. Lastly, KHS is diversifying its product line to go after manufacturers of products like ketchup and mustard. The company already has in-roads with some companies, as it does some case packing work for companies like Heinz. Brancato hopes to see an order for the company’s first ketchup filler in a few months. Behind all this is a commitment to making the best equipment in the business and to always keeping it running. For Brancato, excellent customer service isn’t an option; it’s almost a religion. “The mantra is all about customer service for us,” he said. “We consider all of our employees as skilled, and the key to customer service is a highly skilled, highly trained workforce.” |
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© 2008 American Executive - RedCoat Publishing. All rights reserved.
American Executive is a RedCoat Publishing publication.
American Executive is a RedCoat Publishing publication.
