Successful recovery of sales after loss of major client
Background
Our client was a cooperative i.e., employee held company based in France as a technical leader in the T&D industry serving globally OEMs, utilities and railways. The company had a number of major customers covering the majority of sales and one of these clients re-structured the sourcing strategy towards Asia. Therefore, the client decided to
enlarge their product portfolio and markets based on demand and profitability.
TIPMC was assigned to review the production capability, to analyse potential new target clients and to build a respective business plan. The assignment included the review and benchmark of costing and pricing in the relevant industry of the client.
Approach
The project challenge was to coordinate the relevant inputs during Covid-restricted times as personal meetings had not been possible for the entire project time as well as to coach the newly appointed sales team by the client. Therefore, a detailed product, cost and market pricing analysis based on existing machinery park, production capability and sourcing took place via MS teams lead “plant visits”. The input data had to be double checked with available data from competitors, global market databases and actual available figures. In addition, the benchmark vs the relevant industrial standards were analysed.
The weekly standups with the core team, the coaching of the sales team and the cooperation with the production team lead to a quick result of the analysis. The consequent feeding of all relevant inputs internally as well as externally motivated the entire client team. The alignment with the supervisory board led to an alignment of all parties involved and also to a successful coaching of the sales team. The findings also showed that with small production process adjustments and investments sales successes could be achieved already during the finalisation of the project.
Outcome
The result of the agreed business plan improved the sourcing and costing capability of the client. Certainly, as a major target during the first part of the implementation of the business plan the client could equalise the lost sales volume and even increase the turnover already in the first year of the project implementation by double digit sales volume and considerable improvement of the bottom line. Awareness of the useful implementation of the business plan as basis for strategic decisions was achieved within the entire organisation and employee/owner structure.
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TIPMC GmbHDC Tower
Donau-City-Strasse 7/2/30th floor
A-1220 Vienna, Austria
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Contact + 43 699 189 910 98
Email: peter.tichy@tipmc.at
www.tipmc.com
