Case Study

Oper­a­tional Excellence

A heavy equip­ment deal­er changes com­pa­ny cul­ture, saves $6mil

2022/06/13

The client is a deal­er for a renowned brand of pow­er sys­tems prod­ucts and heavy equip­ment used for con­struc­tion, min­ing, and agri­cul­ture. They also rep­re­sent oth­er lead­ing brands from North Amer­i­ca and Europe, mak­ing them a mar­ket leader in heavy equip­ment sales.

Key results

$6.1mil

Total Annu­alised
Sav­ings

42%

Reduc­tion in
inven­to­ry

$3.1mil

In-pocket sav­ings
 

194%

Increase in cus­tomer coverage
 

The chal­lenge

The organ­i­sa­tion was fac­ing prob­lems in sev­er­al seg­ments: 
  • Inef­fi­cient inventory.
  • Poor fore­cast­ing. 
  • Low work­force pro­duc­tiv­i­ty.  
  • Inef­fec­tive man­pow­er planning.
  • Inad­e­quate per­for­mance review. 
  • Bad cus­tomer service.
They want­ed behav­iour­al change in employ­ees for sus­tain­able results and to see improve­ments in cross-functional inte­gra­tion and com­mu­ni­ca­tion among the depart­ments and busi­ness units in all locations.
 

What we did

The project was divid­ed into the fol­low­ing work­streams:    
  • Sales & inven­to­ry: Improve­ments in busi­ness devel­op­ment, sales fore­cast­ing and plan­ning, sales force pro­duc­tiv­i­ty and per­for­mance man­age­ment  
  • Ser­vice: Improve­ments in organ­i­sa­tion­al design, plan­ning, pro­duc­tiv­i­ty and per­for­mance man­age­ment.  
The project kicked off with an analy­sis and assess­ment of gaps across the client’s oper­a­tions.   We formed a project team which com­prised Renoir con­sul­tants and the client’s task­force.  The Man­age­ment Action Teams (MATs) were formed by cross-functional staff led by senior man­agers.  Progress was rapid as the MATs met week­ly to decide on process and sys­tem changes while the Project Steer­ing Com­mit­tee (top man­age­ment) reviewed the roadmap, removed road­blocks and made key deci­sions con­cern­ing the way for­ward.  The work­streams designed new ways of work­ing while stake­hold­ers reviewed, test­ed and refined the process­es at all lev­els. Upon the Steer­ing Committee’s approval, the new ways of work­ing were rolled out across busi­ness units in all loca­tions. Over 400 employ­ees received train­ing to get them famil­iarised with the new process­es and systems.
 

Sales improve­ments

  • Improved customer-call plan­ning methodology.
  • Greater struc­ture and trans­paren­cy in oppor­tu­ni­ty management.
  • Cen­tralised per­for­mance dash­boards and reg­u­lar reviews.
  • Improved util­i­sa­tion of CRM.

Ser­vice improvements

  • Stream­lined organ­i­sa­tion­al structures.
  • Proac­tive and trans­par­ent man­pow­er planning.
  • Improved work order prioritisation.
  • Clear skill matrix for tech­ni­cians and super­vi­sors. 
  • On-site qual­i­ty man­age­ment process­es and checks.

Inven­to­ry management

  • Re-defined roles and respon­si­bil­i­ties across depart­ments.  
  • Stream­lined order man­age­ment processes. 
  • Improved data vis­i­bil­i­ty via a cen­tralised inven­to­ry man­age­ment system.
  • New per­for­mance dash­boards and reg­u­lar reviews.

Behav­iour­al change 

Train­ing was con­duct­ed for over 400 staff, and a behavioural audit mech­a­nism was intro­duced to mea­sure changes in behaviour and iden­ti­fy focus areas for sus­tain­abil­i­ty and ongo­ing improvement.

Cen­tralised per­for­mance dash­board 

The improve­ments were vis­i­ble to all be it stream­lined order man­age­ment process­es, or improved inven­to­ry man­age­ment sys­tem or bet­ter sales coordination.
 

Results

Tan­gi­ble results were achieved through the hard work of the teams that devel­oped new tools through focused spe­cif­ic ini­tia­tives and tools:   
  • 194% improve­ment in account cov­er­age. 
  • 22% increase in sales.  
  • 13% increase in gross prof­its. 
  • 24% increase in closed deals. 
  • 138% increase in oppor­tu­ni­ty gen­er­a­tion. 
  • 35% improve­ment in annu­al impactable ser­vice expens­es. 
  • 32% reduc­tion in over­due work orders. 
  • 6% decrease in aging inven­to­ry. 
  • 21% improve­ment in inven­to­ry turnover.  
  • 42% reduc­tion in over­all inventory.
The trans­for­ma­tion ini­tia­tive intro­duced vis­i­ble changes in behav­iour and organ­i­sa­tion­al cul­ture. The con­stant engage­ment and involve­ment of employ­ees in all phas­es fos­tered a greater own­er­ship of the new sys­tems and process­es. This will help in the sus­tain­abil­i­ty and con­tin­u­ous improve­ment of the ways of working.
 
* We take client con­fi­den­tial­i­ty seri­ous­ly. While we have kept the brand anony­mous, the results are real.
 

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