A Local Dry Cleaner Tries to Compete Against P.&G.

Project Infomation

FOUNDED in 2004, Hangers Cleaners of Kansas City, Mo., was started as an environmentally safe dry cleaner. It uses colorless, odorless liquid carbon dioxide instead of the aggressive chemicals applied at traditional dry cleaners. It has 35 employees and 2009 revenue of $1.6 million.
To survive the arrival of a huge new competitor, Procter & Gamble, which began testing a Tide dry-cleaning service in Kansas City in 2008.
  • Client : Insight Studio
  • Date : 20 Feb, 2018
  • Skills : Project Planning

Challenge & Solution

When Joe Runyan started Hangers, he was hoping to bring a fresh approach to what he considered a stagnant industry. A first-time entrepreneur who had left a marketing career at Sprint, he had been dissatisfied with the local dry cleaners, finding dirty facilities and rude workers to be the norm.
Cultivate its offbeat image
Hangers continued to cultivate its offbeat image. “We have a personality in a business devoid of it,” Mr. Runyan said. “We can’t out-price or out-spend our big competitor, but we can be genuine, funny and edgy.”
Culture of service and accountability
He worked to create a tight-knit culture of service and accountability. If a garment was damaged, a store representative would call the customer immediately and offer to replace it.
Quantify the gained patrons
He initiated partnerships with corporations, nonprofit organizations and community groups, and he can quantify the patrons gained from each. He also contacted schools and donates 10 percent of the proceeds from parents’ dry cleaning back to each school.

Our Process

Then, while researching the business, he discovered that the chemicals used by most cleaners were prohibiting new entrants. Building owners refused to lease space to cleaners using perchloroethylene, or “perc,” which is now heavily regulated. “By no means was I a tree hugger,” Mr. Runyan said. “But from a business perspective, it was clear this industry had to change.”
Improve sales & operations & production planning
Determine the right inventory level
Optimize the supply chain for perfect order planning
Improve sales & operations & production planning

Result Driven

While other local dry cleaners have told him that their year-over-year revenue is flat or down as much as 25 percent, Mr. Runyan said his revenue grew 2 to 3 percent in 2009 and his profits quadrupled, largely as a result of closing the unprofitable location. (Cedit: nytimes.com)
Reduced lead time by 43%
Decreased variability by 50%
Lowered the risk of back-order by 95%
Increased stock for finished goods by 10%