Case Study

During the years, Nordic Interim has had the pleasure of helping many companies overcome their challenges by matching the right Interim Manager with their needs. Today I want to share a case study of a company facing increased competition which had eroded the margins. There was a strong need for cost improvements, and with ten companies in different countries, the CEO and PE-owners decided to engage an interim COO to manage all the operations.

Situation: A leading company within B2B had grown significantly over the past 10 years, driven by international acquisitions. In total, there were 10 companies.

Challenge: Increased competition had eroded the margins. The PE-owners had together with the CEO realized that there was potential for cost improvement if the operations would be managed under one person. A reorganization on a short basis was difficult as several of the companies would have to be divided in two as they had both sales and operations.

Solution: An interim COO role was created with the task to create an overall operation blueprint and plan of the company, including future production sites, how to handle logistics and central warehouse to reduce working capital, set up central procurement and create a separate product development unit. At first, a capital rationalization was initiated.

Result: After about 1,5 years the inventory was reduced with 20%, a new product road map was created. The cost reduction program focused on key products (10-15% cost reduction on production costs), transport (10-20% reduction), outsourcing and closing down of a factory (20-70% product cost reduction) The interim role was terminated and a permanent COO was recruited.

Read more case studies here: https://nordicinterim.com/case-studies/

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