Profitability Optimisation
The challenge
A multinational company wanted help with a turnaround plan for their unprofitable distribution entity. The location had 15+ branches with 450+ employees and more than 100 years of trading. We were engaged to develop and deploy a turnaround strategy, returning the business to a profitable company.
How we helped
Starting with a detailed product and client analysis, we could identify significant savings and increased profitability opportunities. We designed and implemented the following:
- Sales – and margin plan per customer focusing on the priority of customers e.g. minimum order value, adding freight charges, etc.
- Restructuring costs to serve priority customers resulting in increased margin per customer e.g. delivery route efficiency, credit terms, payment behaviour, average order value, number of returns, time spent by internal resources, etc.
The result
The turnaround strategy designed and implemented resulted in:
- Profitable business within twelve months;
- Improved customer service delivery;
- Double digit revenue growth without significantly impacting cost; and
- Continued profit increase in subsequent years based on the transformed business model.
To find out how we can support your business, please contact us or book a demo.
STICS Limited 