Case Study

Turnaround at Mechanical Engineering Company in Packaging Industry

200216

Manufacturer of systems and machines

An Austrian mechanical engineering company in the packaging industry was struggling with stagnating sales, negative EBT and a lack of coordination between production sites. By consolidating the plants, setting up a shared service center and introducing a uniform ERP landscape (SAP S/4HANA), the company was able to increase sales by 38% and expects an EBT margin of +8.5% in 2022.

q

Company Details

Manufacturer of systems and machines for processing plastics and natural fibers
+30,000 employees worldwide, approx. EUR 6 million turnover
Operates 3 production plants (Germany, Austria, Netherlands) and 8 sales companies worldwide

p

Situation and Challenge

Multiple small subsidiaries with overlapping functions
Lack of alignment among production plants
Parent company’s limited management oversight
Stagnant sales development and low to negative EBT

m

Objective and Tasks

Simplify legal structure and reduce organizational complexity
Establish shared service centers for key functions
Achieve EBIT > 10% and EBT > 6.5%

n

Measures and Procedures

Consolidate production plants and sales companies
Reduce management levels, focus on divisions
Establish shared service centers for sales, R&D, purchasing, finance, HR, IT
Implement uniform ERP landscape with SAP S/4HANA

x

Results and Achievements

Closed non-performing production plant, aligned remaining plants
Utilized country platform companies for distribution
Established management company with efficient shared service center
Restructured supply chain, established JIT center
Achieved +38% sales growth vs. 2020, EBT increased to +8.5% in 2022

These articles might also interest you:

Turnaround at Mechanical Engineering Company in Packaging Industry

Manufacturer of systems and machines

Company Details

Situation and Challenge

Objective and Tasks

Measures and Procedures

Results and Achievements

Atreus Executive Program Manager guides company to bootstrap innovation capabilities

Atreus Executive Program Manager guides company to bootstrap innovation capabilities

Atreus Executive Program Manager guides company to bootstrap innovation capabilities

General Management

Innovation

Machine & Plant Engineering

Turnaround at Mechanical Engineering Company in Packaging Industry​

Manufacturer of systems and machines

Company Details

Situation and Challenge

Objective and Tasks

Measures and Procedures

Results and Achievements

Atreus Executive Program Manager guides company to bootstrap innovation capabilities​

Atreus Executive Program Manager guides company to bootstrap innovation capabilities​

Atreus Executive Program Manager guides company to bootstrap innovation capabilities​

Turnaround at Mechanical Engineering Company in Packaging Industry

Atreus Executive Program Manager guides company to bootstrap innovation capabilities

Atreus Executive Program Manager guides company to bootstrap innovation capabilities

Atreus Executive Program Manager guides company to bootstrap innovation capabilities