The Road Back to Profitable Growth

Client Challenge

Our client, the Managing Director of a trade company that is a European market leader in construction-related products with a turnover of approximately 400 million Euros, found himself confronted with a sales region that after years of good results showed a negative operating result of more than 10% of regional sales. This performance was unacceptable.

Mandat Intervention

  • Together with our client we laid the Regional Sales Director in his new role as the project manager under the obligation to complete a successful Turn-Around project with our help so the company would write black figures again 12 months later.
  • Together with the project manager and the project team we professionalized sales at the six exhibitions within the region and created attractive end consumer offers. Sales to the specialized retailers and to property developers were made profitable through a professionalized quotation system with clearly defined rules for the terms to be offered.
  • We turned the administrative workflows upside down, got rid of unnecessary process steps, reorganized the regional logistics organization and established a consistent receivables management in order to prevent losses of receivables or collect accounts receivable.
  • We built an internal information system, updating all employees within the region plus the employees in the entire enterprise monthly on the progress of the measures taken and the results achieved.

Results

  • Sales have been fully professionalized:.Purchasing activities match sales now..An active receivables management has been established. The logistics provider is fully integrated into the processes.
  • 12 months later, the region is posting a profit again, having realized an improvement in performance of approximately 3 million Euros.

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