Turnaround at a Mechanical Engineering Company

Mechanical engineering company from the packaging industry

q

Company Details

Plant and machine engineering manufacturer for processing plastics and natural fiber
Global, 3 independent production plants in Germany, Austria and the Netherlands as well as 8 foreign sales subsidiaries

p

Situation and Challenge

Several small subsidiaries with overlapping functions
No clear alignment of production plants
Parent company exerts only rudimentary leadership over subsidiaries
Sales performance flatlining for several years, EBT low to negative

m

Objective and Tasks

Tightening of legal structure and reduction of complexity in the organization
Creation of a shared-service center for sales, R&D, procurement, FI/CO, HR, IT
Target: EBIT > 10%, EBT > 6,5%

n

Measures and Approach

Aggregation of production and consolidation of sales subsidiaries
Reduction of management tiers (focus on divisions)
Building the shared-service center
Introduction of a homogenous ERP landscape throughout parent and subsidiaries – SAP S4/HANA

x

Results and Achievements

One plant closed, remaining plants aligned towards single-origin
Double usage of country platform companies as part of the distribution network
Establishment of a management company with shared-service center for sales, distribution, R&D, procurement, FI/CO, HR and (leaner, faster, more efficient)
Supply Chain newly structured and creation of a JIT center
Sales + 38% vs. 2020, EBT increase of +8,5 % in 2022

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