Global Automotive supplier: transforming to get top of its class
Background
The client was a private equity owned global automotive supplier with sales of over €900m. A market leader, having achieved significant growth through acquisitions, was facing problems with its cash flow and profitability.
A major transformation programme was launched, covering all areas of the business, aimed to prepare the business for an exit. We partnered with the leadership team over the whole life of the transformation, providing consultancy, resources and coaching.
What We Did
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Generation of a “3 years transformation plan” and set up Programme Office to manage its execution and optimise the use of resources.
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The programme covered organisational re-design, purchasing, inventory reduction, overhead reduction, relocation of production capability, site closures and movement into low cost production countries.
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Design of new spares distribution and aftermarket manufacturing facilities.
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Implemented new bidding and NPI processes covering operations in Europe and the Americas.
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We partnered with the leadership team over the whole life of the transformation, providing consultancy, resources and coaching
Results
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Significant increase in profitable new business as a result of improved bidding and processes, resulting in an 150% EBIDTA increase.
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Optimised Product Portfolio and standardised global process for Life Cycle Management.
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Reductions in excess of 25% in inventory value & 20% in stock days within 12 months.
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Purchasing savings 7% short term and 18% medium term – China savings realised 30%.
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Rationalisation of the manufacturing footprint in Western Europe, new manufacturing facility for legacy products in Eastern Europe and JV in India for non strategic portfolio.