Sector:
Industrials
Service Lines:
Commercial Excellence
Client Situation
A division of a publicly-traded company was experiencing flat sales and margins were decreasing despite sales volume growth. The situation began to deteriorate quickly and management needed help to turn the business around.
How We Helped
Analyzed products, prices and customer performance to identify underlying areas where pricing and profitability were problematic
Conducted detailed operations analysis to trace back costs and legacy cost-based pricing assumptions to manufacturing plants and production lines
Identified several hundred SKUs that could be eliminated due to their low or unprofitable performance and other products could be substituted
Defined new pricing levels and discount thresholds to re-price several hundred SKUs
Estimated potential operational and working capital savings that would result with the pricing and product portfolio changes
Result
Recommended client eliminate many unprofitable SKUs and re-price many others that had stable or growing customer demand
Client implemented recommendations and both sales and profits grew
Additional cost reduction opportunities were found in operations once SKUs were eliminated