The Business Challenge:
- Our client, a FTSE 250 major retail group, had been contending with an increasingly competitive environment with new entrants, new market channels and more direct-to-customer purchases
- Although sales had remained strong the business costs continued to escalate, impacting margins on all fronts.
- A complete Business Transformation was imperative to radically reduce overhead costs while increasing service levels, corporate governance and process execution speed.
How We Helped:
- Our team was engaged to transform the performance of the business, reducing operating costs by 20%
- The scope of work included:
- building Finance, IT and HR ‘shared services’
- transforming the sales and marketing division
- rebuilding the logistics division’s core processes
- building a new consumer business sales operation
- improving service levels and relationships with principals, customers and suppliers.
- The Programme delivered initial savings of c.£24.5m, with a 35-40% reduction in ongoing annual operating costs
- Headcount was reduced by 18%, whilst significantly improving service levels
- Cash management and cash flow was dramatically improved
- Business processes were strengthened, with clearer communication channels.
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