Bath Fitter Has Vertical Integration
The other night while watching TV I saw the commercial below for Bath Fitter. Bath Fitter is a company that retro-fits new acrylic bathtubs, showers, and surrounds to give an updated look to your bathroom. Can you pick out the things that caught my attention from a lean perspective?
I can’t speak to the quality of their product because I have never used them, but there two things that caught my attention. The vertical integration of the supply chain and the lifetime guarantee. The commercial is only 30 seconds that I checked out their website and it mentions the the vertical integration and lifetime guarantee also.
Bath Fitter has control of the product from raw material to installation. This control allows them to better guarantee the quality by knowing exactly how it is made, not outsourcing it to someone that could take shortcuts to manufacture the product without Bath Fitter knowing. Also, they control the measuring, installation, and customer facing representative. By doing this, Bath Fitter would be able to get accurate and fast feedback about how the product is being used, quality issues, or the ease of installation.
This is very similar to Henry Ford controlling everything from the raw materials (mines for metals and saw mils for wood) to manufacturing to the first dealerships. The tighter control over the supply chain allowed costs to be reduced AND quality improved. Not just one or the other.
The lifetime guarantee Bath Fitter promises indicates the confidence in their quality of product and installation. I know some companies (and Bath Fitters could be one, I don’t know) play games with the lifetime guarantee making it impossible to actually get a claim on the guarantee. A reason they can make the guarantee and feel good about it is because they controlling the supply chain from start to finish.
What do you think? Does Bath Fitter have some lean like qualities?