A long-standing family-owned business operating across the UK. This business is a key supplier into the construction industry, working through several UK depots and deep stock holding.
Challenges
The business had slowly reduced and fallen into administration, rescued by a well-known PLC. Our challenge was to expedite the supplier relationships and commercial deals to allow the business to compete and grow in the market.
Approach
We worked with the senior leadership team (SLT) to establish the main priorities and then designed a three-phase approach:
- Fixing small 8-week projects to be actioned in priority order, to establish a base line of commercial and buying operations which would resolve key buying issues within the supply base.
- Once the six priority projects had been delivered, we worked with the business, suppliers and industry bodies to establish the right strategic direction for the business, to then design the Category & Buying blueprint behind the plan.
- Took the business through the transformation and plan and worked with the SLT to embed the new ways of working into the organisation.
Outcomes and deliverables
The program ran through three phases during the 12 months, with each phase delivered against the following objectives:
- Introduction of new supply chain model including, central ordering and open to buy, which resulted in a 40% reduction in non-moving stock, 99% product availability and on-time in-full (OTIF) of 99.5%
- Gross profit per cent increase from 13% to 21.5% and net profitability from 2% to 9%
- Commercial income +300%
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