Manufacturing Affordable Innovation: Meeting Workspace Needs When the Market Couldn’t
Company: Codi
Industry: Real Estate & Flexible Workspaces
Key Challenge: Filling the market gap for phone booths and modular conference rooms by designing affordable, high-quality solutions unavailable elsewhere.
Challenge
As flexible workspaces gained popularity, the demand for phone booths and modular conference rooms skyrocketed. However, the market fell short:
Existing options were prohibitively expensive or unavailable in key regions.
Customizable, client-specific solutions were rare, leaving clients underserved.
The need to create a supply chain capable of manufacturing and delivering these products at scale became essential.
Solution
Developed a cost-efficient supply chain to produce customizable phone booths and modular conference rooms, achieving significant cost savings, scalability, and streamlined logistics to meet market demand.
Market-Driven Design
Designed & manufactured phone booths with custom features that were not standard in US retail versions, such as height adjustable desks, dimmable lighting, and adjustable ventilation.
Created modular conference rooms with unique features like a 12ft x 9ft configuration, glass whiteboards, and temperature-controlled ventilation.
Identified gaps in available options and collaborated with Design to create high-quality, modular conference rooms and phone booths.
Prioritized affordability and customization, ensuring the solutions met diverse client needs.
Global Manufacturing Partnerships
Partnered with international manufacturers to produce modular components at competitive prices.
Established stringent quality assurance protocols to ensure compliance with UL 962, which includes specific safety and performance requirements for modular booths and modular rooms.
Negotiated free warehousing to further reduce costs and improve supply chain efficiency.
Achieved cost reductions of 46% for phone booths and 75% for modular conference rooms through offshore manufacturing, reflecting the all-in landed costs in the US.
Streamlined Logistics
Designed a logistics system to minimize lead times, optimize shipping routes, and reduce costs by partnering with logistics partners ensuring low costs.
Negotiated free warehousing in China, a rare and unprecedented move that significantly reduced costs while ensuring timely delivery and scalable distribution.
Empowering Clients with Flexibility
Developed modular designs with interchangeable components, allowing clients to customize setups easily.
Created a scalable production model to handle rapid increases in demand without sacrificing quality.
Results
Cost Reductions: Achieved 46% cost savings for phone booths and 75% for modular conference rooms through offshore manufacturing, significantly reducing overall landed costs.
Innovative Offerings: Introduced phone booths and modular conference rooms that were affordable, customizable, and readily available.
Cost Efficiency: Achieved a 25% reduction in manufacturing costs through strategic partnerships and free warehousing.
Scalability: Built a supply chain capable of supporting rapid market expansion and increasing client demand.
Client Satisfaction: Delivered high-quality solutions tailored to meet the specific needs of diverse clients.
Key Takeaways
Innovation thrives when solutions are designed to fill unmet market needs.
Strategic manufacturing partnerships, warehousing agreements, and adherence to safety standards are crucial for balancing cost, quality, and scalability.
Modular, customizable products empower clients while maintaining operational efficiency.