Critical business processes are the engine room of any successful turnaround

 Critical Process Improvement

Our role: 

The CEO and Board engaged us to identify the reasons behind the retailer’s deteriorating financial performance and define opportunities to address key challenges. We identified opportunities to improve critical business processes in the following six areas:

1. Shared services; redesign of operations to reduce support costs across HR, Finance, IT, Property, Security and Internal Audit to improve EBITDA.

2. Supply chain; reengineering of the end-to-end supply chain to reduce overall spend on “factory-to-store” logistics whilst meeting the complex requirements of this diversified business.

3. Merchandising and buying; streamlining merchandising and buying processes to get the right products to the stores at the right prices to increase sales,  optimise gross margin, improve EBITDA and reduce working capital requirements. 

4. Marketing; moving from tactical advertising and promotions to strategic marketing based on deeper customer insights aimed at improving foot-traffic and sales.

5. Customer experience; improving in-store execution by standardising retail operating procedures and enhancing training of store representatives. 

6. Financial management; designing and implementing formal reporting procedures to better monitor performance and manage monthly results against budget. 

We subsequently developed a detailed roadmap to implement streamlined business processes as part of a Business Transformation Program. A Program Management Office has been established to execute this complex change program in an integrated way and to ensure that tangible benefits from the reengineered processes are fully realised by the business over time.

Specific work is currently being undertaken to reengineer selected merchandising and buying processes, train the Product team in best-practice processes, and provide ongoing mentoring to the category managers, buyers and planners through monthly buying reviews.

The goals of the transformation program are to:

       - Increase sales by 25%,

       - Improve margin by 1%, and

       - Reduce Cost Of Doing Business (CODB) by 2% of sales.

How can we help?

We frequently work with corporates to assist owners and management teams navigate uncertainty. We can make the difference to how your business preserves, creates and delivers value in times of challenge.

Our experienced team knows that a successful turnaround must address the fundamental problems, tackle the underlying causes of underperformance and be broad and deep enough to resolve all key business issues within each phase of a turnaround.

 

 

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