THE CHALLENGE: STRUGGLING TO SURVIVE IN A HOSTILE ECONOMIC ENVIRONMENT

Our client, a larger metal products company, was not meeting its shareholders and financers expectations. Questionable strategic choices, unfavourable market conditions and strong price pressure from competitors meant our client’s business had been unprofitable and deteriorating for several years. Added to this, the manufacturing footprint was too costly due to high overhead costs, inefficient asset allocation and production setup.

The client asked us to conduct a restructuring diagnostic and to subsequently lead the company back to profitability. The longer-term goal was to help the company achieve its objective of reaching an overall profit margin of 8%.

OUR SOLUTION

sebius deployed an experienced business leader/entrepreneur and turnaround specialist to lead the project from the review phase right through to implementation.

The first step was to conduct a four-week review to validate all earlier findings and to design a detailed implementation plan. Implementation then started.

After the review phase sebius additionally deployed an experienced production project professional and an experienced HR-professional.

While the project covered all areas of the value chain, our team of professionals focused on the following areas in order to maximize profitability: repositioning of sales quality, consolidation of manufacturing and reallocation of production, logistics cost reductions, productivity improvements, and purchasing efficiencies.

THE PROFESSIONALS RESULT

Identifying and achieving performance improvements was the key to turning this business around. With their focus on a stringent cost saving program and a strongly improved sales and operational process, our team of professionals was able to pave the way to a since then profitable business. The company is now on a path towards achieving its profit target.

To learn more about how sebius professionals can transform your organization’s future, please contact us