The Challenge | Strategy and approach | Methodology used | The Outcome |
£35m t/o UK PLC subsidiary manufacturing engineered electro-mech. prods/systems (70% export) Very strong brand but poor performance - in need of Turnaround 4 Divisions (on 3 sites) supplying Distributors & OEMs directly
| Identify best routes to market Leverage, differentiate and consolidate brand strength Focus R&D and Marketing to launch new high-margin products Enhance profit margin through Headcount, and an intensive production cost reduction plan
| Re Assessed contribution and structure of margin for competitive tendering Introduced ‘Fast Track’ premium service & KPIs Targeted 15% cost reduction on hi-volume lines & adopted ‘Lean Manufacturing’
| T/o increased by 28% in a year ‘Fast Tracking’ secured £2m pa extra revenues Working capital reduced by 15%; ov/head by 10% Outsourcing & Supply Chain improvements R.O.S. rose from 2.5 % to 6.2% within a year and continued growing. |