Business Issue

Too many products, manufacturing cost overruns, revenue declines and profits going backwards year on year.

Optivus Engagement

We were given 90 days to improve the profits of this business.

We decided that the Optivus EASE Program was required in this case.

How We Did It

A complete business diagnostic was conducted which highlighted areas of significant costs that could be reduced quickly. The product portfolio was to wide and needed streamlining to better meet current and future market demands. Price points needed adjusting to meet market expectations.

Poor product support across service and parts was evident and we quickly fixed these issues with the addition of qualified staff and the implementation of new incentive plans to drive desired behavious. We cut products, reduced costs and streamlined the organisational structure.

Inventory management disciplines were implemented and supplier operating plans put in place driving cost downs across 20+ product categories.

Finally, unit pricing was reviewed, costs taken out in the supply line to lower market prices driving a  renewed sales culture to secure market share improvements and revenue increases whist holding margins.

Results

5 products dropped from the product portfolio | Cost cut by 15% | Revenue increase of 9% | Profit Improvement of 6.8%.