Consumer industry – Portfolio optimisation with a successful increase in profitability
An international manufacturer of consumer goods sees itself faced with growing costs due to an increasing number of products. Consequently, the pressure to deliver results in the individual product groups increases. In order to optimise the product portfolio of a segment, AXXCON is brought on board as an external Project Manager for support.
Through the inclusion of all internal stakeholders, measures have to be created and implemented which enable improvements in the result of individual product groups. Simultaneously, internal structures and various processes in the management of the product portfolio are to be optimised and comprehensively standardised. Only through this can robust success be guaranteed.
Efficiency and transformation topics are part of AXXCON’s core competencies. Evidence of extensive project experience in increasing returns, and the restructuring of product groups, can be presented. For this reason, AXXCON is, together with the customer, in a position to quickly implement necessary changes, as well as introduce suitable processes and structures.
Existing approximate analyses show a continually shrinking earnings trend in product groups with a previously high contribution to operating income. However, detailed analyses and defined KPIs are not in place to guide the portfolio. The existing organisational structure and the internal procedures do not envisage the timely generation and implementation of counter-measures.
The negative earnings development requires the fast implementation of a suitable course of action. Simultaneously, the newly developed processes in the affected departments are to be anchored in such a way that employees are motivated and able to restructure other product groups to the same extent.
AXXCON’s solution approach and measures
On the basis of a detailed situation analysis of the product groups and procedures, a suitable and cross-segment project team was able to be formed, together with the customer. Under the management of an AXXCON expert, product-specific measures were developed for the re-engineering of the products. The number of products was significantly reduced, and an adjusted price differentiation was allocated. Subsequent products were also defined and implemented with a time plan.
The implemented measures led to a sustainably positive development of earnings, and the savings objectives desired by the customer were able to be comprehensively achieved. A standardised process within the meaning of a Continuous Improvement Process (CIP) was introduced and anchored in among the workforce, for the optimisation of the entire product portfolio. The desired transfer of expertise into the company was also successful. Today, a product team coordinates the tasks between the affected departments, and improves the performance through standardised procedures.