Our client is a specialist in office furniture design, providing furnishings for modern office and working environments.
€21.6m loss on €230m sales
€15.0m one-off restructuring cost (shut-down subsidiaries, outsourcing)
2-year restructuring process (in partnership with banks & lenders)
Our approach involved a comprehensive, in-depth, review of the client’s entire order-to-delivery process. We identified and reduced process inefficiencies and eliminated waste and non-value adding tasks. This enabled the client to reduce headcount.
An in-depth review of sales highlighted opportunities to improve sales planning, pricing strategy while reducing costly product customisation options. This also opened up opportunities to improve purchasing practices which contributed directly to improvements in Gross Margin.
€10.7m improvement in gross margin +59.8% (41.6% in 2012 to 66.5%)
€10.5m savings (headcount - order-to-delivery process, cost cutting other operating expenses, operations planning): -21.6% reduction in headcount from 1,387 to 1,092 staff