From Losses to Profits – the New Beginning of a Leading Storage System Manufacturer

I Background and customer challenge?

The company, a global leader in the production of storage systems employing approximately 150 people, markets and sells products worldwide to both private consumers and business customers. For several years, the company faced increasing losses. Operations required comprehensive rationalisation, and control instruments and management systems needed strengthening.?

Mantec was engaged to drive this process of change.?

II Analysis?

The project began with a preliminary study conducted by Mantec, which involved reviewing and analysing the entire company, including sales offices and subsidiaries in Europe, over a three-week period. Based on this analysis, several subprojects were defined, and the transformation work commenced.?

III Implementation - Key Focus Areas?

1. Customer and Product Analysis?

• Conducting ABC-XYZ analyses and calculations for customers and products to classify them based on significance and determine the appropriate handling approach.?

• Based on these analyses, both customers and products were consolidated, a process which increased the profit margin significantly.?

2. Supplier and Material Cost Reduction?

• Analysing suppliers and purchased materials, leading to renegotiation of contracts and replacement of certain suppliers.?

• Adjusting material specifications to improve efficiency and cost-effectiveness.?

3. Organisational Restructuring?

• Redesigning the company’s organisational structure, leading to a substantial reduction in both direct and indirect personnel costs.?

• Achieving rapid and positive cash flow effects as a result of these changes.?

4. Implementation of Operational Control Systems?

• Installing a target-based management system for the entire company, including structured follow-up mechanisms.?

• Deploying an information system for marketing and sales to enhance decision-making.?

• Developing a forecasting and planning model, integrating a structured information framework.?

5. Change Management and Training?

• To ensure the organization's motivation and ability to sustain change, training was provided through theoretical sessions and multiple workshops.?

• Additionally, by structuring project management within a dedicated project team, the company was able to take ownership of the change process and secure continuous improvement.?

IV Results?

The project led to lasting behavioural changes and the implementation of several new systems and working methods. As a result, costs were reduced and income increased through:?

?? A higher profit margin, achieved by consolidating customers and products.?

?? Lower material purchase and freight costs.?

?? Reduced direct and indirect personnel expenses.?

The company achieved positive cash flow even before the project’s completion. Upon completion, it reported a positive financial result for the first time in several years, marking a significant turnaround in its performance.? ? ?

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