Case Study

Reorganization of after sales at medium-sized automotive supplier

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Analysis and optimization after takeover by private equity and spin-off into independence

A medium-sized automotive supplier in the recycling sector was taken over by an international financial investor as part of a carve-out. The company was confronted with margin losses and declining competitiveness in the after-sales business. By introducing new SAP processes, developing a proactive sales strategy and making targeted price adjustments, it was possible to shorten quotation lead times, increase sales by 15% and improve margins by over 5%.

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Company Details

Medium-sized automotive supplier with 200 employees, owned by an international financial investor
Carve-out from a large group, approx. 50 employees, approx. € 130m turnover
Worldwide branches in 8 countries
Field of activity: recycling for metals

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Situation and Challenge

Reorganization after takeover by private equity and spin-off into independence
Introduction of new SAP version to optimize processes in the aftermarket
Challenges in margin development and competitive situation in aftersales
Need for a proactive strategy in the aftermarket to strengthen competitiveness

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Objectives and Tasks

Optimization of quotation preparation to reduce throughput times
Increase sales in the aftermarket by 15%
Establishment of proactive sales and expansion of marketing activities
Intensify customer visits with a focus on key accounts and develop service products and KPIs
Creating transparency for installed base in the market to monetize additional wear parts

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Measures and Procedures

Analysis of existing processes and identification of opportunities for improvement, e.g. by assessing the value of the installed base
Establishing an internal network to gather information and gain the trust of employees
Active visits to branches and customers as well as market analyses and surveys to analyze the competition
Discussions with competitors and suppliers and staging an innovation workshop
Price analysis and adjustments, particularly for wear parts

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Results and Successes

Improvement in quotation lead times: 70% of quotations in the aftermarket are created and sent within 48 hours
Creation of competitive prices that lead to an increase in sales of € 125,000 within 2 weeks
Increase margins on quotes for ETO’s by 5%
Introduction of KPIs such as incoming orders, quotation volume per week and region, lead times for quotations, margin development for ETOs, etc.
Corporate culture was aligned stronger towards future-oriented activities
The overall sales margin was increased by 2% within 9 months
Professionalization of aftermarket service and implementation of aftermarket campaigns to promote various service products in a targeted manner
Introduction of an AI tool to improve processes in the hotline area

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