The Way Back to Profitable Growth

Client Challenge

Our client, the divisional director of a leading European trading company in the construction-related business with a turnover of approx. 400 million euros, was confronted with a sales region which, after years of good results, had generated a high negative operating result of more than 10% of the regional turnover. This performance was unacceptable.

Mandat Intervention

With our client, we committed the project manager to working with us to bring a project to a successful conclusion and to get back in the black within 12 months.

With the project manager and the project team, we professionalized sales at the six showrooms in the region and created attractive offers for consumers. Sales to specialist retailers and builders were put on a profitable footing, thanks in particular to a professionalized quotation system with clear sales terms.

We turned the administrative processes upside down, dispensed with unnecessary process steps, reorganized regional logistics and established a tight receivables management system to prevent defaults and collect outstanding receivables.

We set up an internal information system that kept not only all regional employees, but also employees throughout the company, up to date every month on the progress of the measures.

Results

The Sales department has been professionalized. Purchasing activities have been aligned with sales. An active receivables management system is in place. The logistics service provider is fully integrated into the processes.

After 12 months, the region has returned to profitability, with a jump in earnings of around €3 million.

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