We demonstrate a step change in operating performance
We work together to evidence the changes to operating model and process that deliver improved company performance.
Situation
A FTSE 100 Engineering firm had won a significant marine refit and maintenance contract which involved setting up a new maintenance facility overseas. The firm had identified that the core processes of its new operation were not yet mature and would likely delay programme schedules and increase costs unless action was taken.
Achievements
The team redesigned and improved core processes and systems across the supply chain, operations and reverse logistics function to ensure that engineers could undertake work that was right first time with the right sequencing, tools and resources available when needed. Resources required for work on the critical-path were highlighted, prioritised and expedited while systems changes brought supply chain issues to light in sufficient time to be effectively resolved. The team created a near-real time reporting suite that allowed senior managers the ability to accurately forecast timelines and costs and prioritise the issues that affected them.
Financial impact
The engagement reduced programme delinquency by almost 50% and helped secure £80M of future contracts for the client.
“A solid 10/10; this was an excellent piece of work that represented good value for money. We would be very keen to work with Glenesk again on relevant engagements. They helped us to identify and prevent bottlenecks to growth and supply chain risks as part of the due diligence and found significant cash-release and savings opportunities working alongside the local management team.”
Fund Manager – Guinness Asset Management Ltd
Then we work together to build on bottom-line results
We help you deliver the results and grow the capability to do it independently.
Situation
A Private Equity firm had recently acquired a stationery wholesale business from a FTSE 250 manufacturing firm. From its due-diligence it had recognised that the operating efficiency of the firm was 3-5% lower than a best-in-class comparator and the owners wanted to see the gap closed.
Achievements
The team identified that the firm’s distribution network was no longer optimised and so presented an alternative network structure that would reduce costs and improve the availability of stock to retailers in the medium term. In the short term, a series of rapid improvement projects was undertaken to improve performance across the business:
In-bound logistics – Improved data capture on the causes of late and damaged goods were put in place and used to resolve the priority issues. Data analysis identified goods-in where the put-away process could be avoided and goods taken straight to the goods-out area.
Warehousing and transport – Loading bays were reconfigured to reduce loading times, software was developed to ensure that hot-pick items were always stored front and centre of the warehouse and new technologies were implemented to reduce picking times. More efficient packing and routing of transport also produced efficiencies.
Stock release – Modelling of stock levels identified the opportunity to reduce stock across several SKU’s and improve procurement protocols without an adverse impact on the business.
Financial impact
The changes made resulted in a 5% increase in EBITDA and a one-off cash release of £1.2M from a reduction in stock levels.
You gain a competitive advantage and an investment in your team
You get an investment in your team and the means to drive continuous and sustained improvements.