$200 million consumer goods manufacturing business unit.
CEO and executive team needed to reassess their business operations and find ways to turn their low profitability into higher margins or make a decision to exit the business.
- Review the operations of the company, specifically, assess the processes, procedures, and costing to determine adequacy.
- Assess the current equipment and manpower to determine efficiency.
- Compare current benchmarks and KPIs to industry standards.
- Analyze and recommend plan to drive profitability or recommendation to exit the business.
The client business unit was operating at 2 – 3% EBIT. The selling was done through distributors as this was the primary go-to-market strategy and 95% of sales was done with 4 large distributors. Distributors complained about the client’s inability to meet the 5 day lead time for shipping products. Client’s lead times varied from 10 to 15 days for various product lines.
- Researched and interviewed customers to identify strategies to win in client’s market place.
- Developed operating model aligned to deliver on identified key success factors.
- Restructured operations and supply chain to deliver on those factors.
- Implemented proprietary demand driven planning system to service key client accounts within expected lead times.
We were able to:
- Identify strategies to win and success factors in the market place.
- Make the necessary operational changes to deliver on those factors.
- Restructure operations to increase volume and leveraging fixed costs.
- Increased profitability by 2X within 9 months.
- Increased market share driving additional production volumes.