Reshaping a Water Industry Leader – A Malaysian Success Story

Identifying the Core Challenge

In Kuala Lumpur, Malaysia, I was contracted as a business consultant by a company specialising in producing bottled mineral water, 5-gallon water bottles, and manufacturing water coolers and hot water systems. Initially hired for a short-term consultancy, the engagement extended to a year as I uncovered deeper issues within the company.

At first, the company was reluctant to give me full access to its operations, which raised concerns. Eventually, after building trust, they opened up about some troubling practices. The most pressing issue? They were selling bottled tap water as mineral water. An employee would fill the bottles as quickly as possible from a regular tap while the truck driver waited to load them. The practice was both unethical and unsustainable, jeopardising the long-term viability of the business.

The Solution & Process

After building rapport with the owner, I convinced him that continuing this practice would harm the company and his reputation. He agreed to invest in proper purification equipment, and I personally travelled to China to source a commercial-grade filtration system. I even brought back an engineer from the manufacturer to help install the equipment and train the factory staff. This upgrade allowed the company to produce clean, drinkable water that met proper standards. We also implemented a bottle deposit system to replace their old, battered bottles, covering the costs with deposits paid by customers. I introduced a computer system to track sales, deliveries, and bottle deposits, streamlining operations.

During my investigations, I also discovered that the water coolers they claimed to be manufacturing were actually assembled from parts imported from South Korea. While there was nothing wrong with this, I realised that the same components could be sourced more affordably from China. Another trip to Shenzhen secured deals that significantly reduced their costs without sacrificing quality.

Efficiency improvements continued when I sourced automatic bottling machines during one of my trips to China. These systems increased the factory’s output and operational efficiency. Additionally, I helped the company secure a contract with one of the largest water bottling companies in the Philippines for ongoing orders of two containers of water coolers per month.

Results & Impact

The changes we implemented transformed the company from one relying on unethical practices into a respected, award-winning operation. Production was optimised, costs were cut, and the company expanded into international markets. To cap it all off, I entered the company into the Malaysian government’s SMI (Small Industry) Awards. We won, gaining public recognition, a cash prize, and a significantly enhanced reputation for quality and integrity.

Lessons That Drive Success

This project taught me that even the most unethical practices can be turned around with the right approach. Building trust with the owner was key to creating long-term change. By focusing on quality and efficiency, we not only saved the business but elevated it to a position of leadership in the industry.

There was one thing I couldn’t change, though—their smoking habits in the office. Despite my best efforts, the team continued to smoke, which wasn’t ideal for a drinking water company. Whether they’ve stopped or succumbed to lung cancer remains a mystery!

Your Next Step Starts Here

Whether you’re facing challenges or simply looking to improve what’s already working, let’s talk about how I can help you unlock new opportunities for growth. Even if you don’t see the potential yet, let’s explore how we can propel your business into uncharted territory!