aUSTRALIA
Fuel and Lubrication Industry
The backstory
Family owned business dealing with rapid growth which required stabilisation and the implementation of more sophisticated systems, processes and procedures. There were no policies and procedures in place and a new system was implemented with the transfer of data not reconciled. The system was not used to its full potential either, as old processes were still being used. The company’s ambition was to achieve accelerated growth for product related work, particularly OEM equipment and services. They had identified some opportunities for growth but did not have the on-ground support to execute change, monitor progress and train internal staff. Client privacy is important to us therefore full information and actual results have not been disclosed.
01
The challenge
- Absence of structure – organisational, financial, operational.
- Lack of strategic clarity and alignment.
- New System with the use of old processes.
- Operational inefficiencies and lack of consistency with processes.
- Focus on low GP customers.
- Lack of internal controls, policies and procedures.
- Low employee productivity due to lack of monitoring and clear organisational leadership.
- Certain skills were missing from various areas of the business.
- Financials required greater sophistication for analysis, reporting, risk mitigation and control.
- Financial reporting was basic and did not provide enough information to make informed decisions promptly or with confidence.
- Sales Reps were given unrealistic targets and were not monitored with specific KPIs or ROI analysis.
- Manufactured equipment sales projects were unclear during production causing customer issues with the lack of interpretation of job builds. Stock was also not held for production purposes which would cause the completion of works to be delayed.
- Warranty for inventory was rarely recouped or monitored with the supplier which costed the business money.
- Manual based processes creating inefficiencies. Day to day operations were unproductive and objectives everchanging. Unclear marketing messages with outdated branding
- With outdated branding
02
Our Solution
03
Results
$350,000
SALE CONTRIBUTION
4X
NET PROFITS
- Expanded branches in other states and created 3PL opportunity to test the market.
- Provided real live data allowed Management to take action instantly and deal with issues proactively.
- Improved customer service and satisfaction through systemised and consistent processes that were streamlined across Divisions.
- Confirmed with customer feedback, reviews and increased sales.
- Structured systematic approach to operations with a positive financial impact.
- Greater productivity due to clearly defined roles, responsibilities and accountability through KPI reporting and performance appraisal reviews.
- Faster delivery of customer orders with improved process efficiencies
- Clearer leadership approach for the Management team.
- Improved employee performance and engagement with nurturing leadership and a constructive culture.
- Launched a new website with clearer messaging, cleaner branding and newsletters to promote sales.
- Growth accelerated with strong foundations and confidence to continue on their journey with the team well equipped to achiever great heights.
- 100% retention rate of all new hires. Conducted rigorous interviews and on the spot testing.
- Increased 4x Net Profits under 18 month period. Wages inflated against market were not normalised along with Director expenses. If excluded, the result would have been greater.
- Provided real live data allowed Management to take action instantly and deal with issues proactively.
- Increased gross profit margins to targeted budget and more.
- Product rationalisation and inventory analysis allowed for 50% plus GP for most products.
- Reduced direct costs by 30% and indirect costs by 15%.
- Reduced debt by 11% through refinancing bank facilities.
- Restructured FBT impact and saved $50k through various methods.
- Reconciled accounts and amounts from system implementation and achieved integrity of data.
- Created dashboard reporting through the system to keep Management in tune of business performance.
- Sold products into new markets and targeted customers more strategically with greater Gross Profit margin per product and customer.
- Sold part of a business to an international buyer – which was no longer part of the clearly defined business strategy.
- Acquired and merged a company which aligned to the core company vision and product offering.
