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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.

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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​
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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​
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Objective and Tasks

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

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