How BKK is reaching its full potential as a global hook provider

BKK has prepared itself for the future by implementing a management system that is already producing results and improving the business, says Scott Xu, the company’s Chief Marketing Officer.

What is the BKK Excellence in Operations project?
SX: After years of development, BKK has become a global company with a presence worldwide. Looking to the future, it is committed to deepening its focus on hooks, with the aim of becoming the world leader, with global operations, product development and a win-win business approach. However, the company has lacked a systematic, scientific and effective management approach and the old management methods were no longer sufficient to support the company. There were still many basic issues that needed to be addressed, which prevented BKK from reaching its full potential. Specifically, there were issues such as insufficient coordination between departments, frequent problems with order fulfillment, increasing conflicts between sales and internal operations, distrust between departments and a daily focus on firefighting rather than long-term solutions.

Despite being very busy, the results were not ideal, leading to frequent order delays, long delivery cycles, high inventory costs and low inventory turnover efficiency. The Integrated Supply Chain and Organisational Capability Building Project (Excellence in Operations Project) was launched to improve organisational capabilities through coaching methods. The project aims to improve customer satisfaction, increase overall operational efficiency and reduce operational costs.

Given BKK’s current challenges and developmental stage, while also considering the company’s management foundation and capacity, the project focuses on core areas such as process KPI rules, monitoring platforms, IT system applications, organisational structure and leadership behaviour management. Specifically, the project revolves around customer orientation, cost-effectiveness and fast turnover, establishing strategies and rules for different operations across various channels, integrating supply chain processes, enhancing the core operational indicator management system and building a control platform for continuous operational improvements. This will ensure accountability at all levels, integrate business with IT systems and achieve low-cost, fast delivery.

When did this project start, and what were its initial goals and objectives?
The Excellence in Operations Project officially launched at the end of July 2024. The primary goals of the project were:

1. Doing the right things: Restructuring the supply chain processes and building both result-oriented and process-oriented KPI systems.
2. Doing things right consistently: Establishing an execution monitoring platform to ensure continuous improvement.
3. Performance improvement coaching: Focusing on company-level performance indicators, improving customer satisfaction, reducing customer delivery cycles and decreasing operational capital turnover days. The project also aims to address issues such as quality compliance, BOM (Bill of Materials) simplification and optimisation of the inbound and outbound process nodes.

What resources did BKK invest in the initial stages of the project, including manpower and material resources?
At the beginning of the project, BKK formed a project team, established a project steering committee, a project management office and multiple sub-project teams. Senior executives and key personnel from BKK’s core business departments were included in the project. An independent office was set up for the project team, allowing all members to work in one centralised location. Daily project team meetings were held to review the previous day’s work and weekly meetings were organised to assess weekly progress and plan for future activities. Occasional solution workshops were held to resolve professional issues and regular progress meetings and stage results reports were held to keep the project under control.

What significant achievements have been made so far in the Excellence in Operations project?
The Excellence in Operations project has achieved several important milestones:

1. Development of high-standard behavioural norms centred on customer orientation, value orientation and responsibility orientation.
2. Transformation of management style: The project has shifted the mindset of the company’s management from a ‘transactional management’ approach to a ‘continuous improvement management’ approach, fostering a culture of constantly raising work standards.
3. Standardisation of core processes: A clear ‘One Plan’ system was established, along with standardised interfaces for production, supply and sales. This has significantly improved communication efficiency and reduced internal process inefficiencies.
4. Establishment of an operational indicator system: This has made responsibilities clear at all levels, ensuring transparency and accountability in both process and outcome.
5. Creation of a management control mechanism: A system for identifying and solving problems has been established, ensuring consistency and coordination in the plans between departments. This mechanism has driven continuous organisational performance improvement.
6. Talent development: Using a coaching approach, the project has helped cultivate a group of core talents within the company, empowering them to lead and drive the company’s growth.
7. Reduction in BOM complexity: A significant reduction in the complexity of the Bill of Materials (BOM) has been achieved, making the production process more efficient and less resource-intensive.
8. Performance improvement: Key company indicators have improved as follows:
   • Customer order satisfaction rate has increased by more than 50%.
   • On-time production delivery rate has improved by more than 40%.
   • First-pass quality compliance rate has increased by over 15%.
   • Production cycle time has decreased by more than 50%.

These achievements demonstrate the significant progress BKK has made in optimising its operations and improving overall performance.

How does BKK plan to further optimise this project with the ongoing changes in the global market?
BKK plans to continue strengthening the implementation of the Excellence in Operations project by working closely with the project team to establish long-term strategic collaboration. The processes, KPI rules and control mechanisms developed through this project will continue to support BKK in reinforcing its management foundation, building organisational capability and improving performance. The development of the Excellence in Operations Project will go through three stages: integration and optimisation within departments, integration and optimisation between departments and integration and collaboration with customers and suppliers. The project has already achieved significant progress and it will be increased gradually in line with the company’s improvement. Future enhancements include increased business-finance integration, improved ERP applications, enhanced performance management capabilities, supplier empowerment and customer management optimisation.

Has the Excellence in Operations project had an impact on the fishing tackle industry as a whole?
BKK has established a reliable and sustainable management system that integrates processes, metrics, accountability, control mechanisms, organisational culture and information systems. This has enhanced organisational capabilities and laid a solid foundation for executing our strategy. At the same time, we’ve cultivated a core group of individuals to lead the company’s growth.

BKK’s categorised operation model based on sales channel characteristics and product types (MTS, MTO+, MTO) has significantly improved on-time delivery rates, quality compliance rates and – notably – reduced production cycles and enhanced inventory turnover.

This new production and operational model will bring a fresh approach to the fishing tackle industry, moving away from the traditional method of holding large amounts of inventory to meet customer demand. It will introduce new concepts to optimise cash flow for companies in the fishing tackle industry and elevate overall management standards, taking the industry into a new era of operational management.

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