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Case Study

Turnaround at Mechanical Engineering Company

Mechanical engineering company from the packaging industry

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Company Details

  • Plant and machine engineering manufacturer for processing plastics and natural fiber
  • Global, 3 independent production plants in Germany, Austria and the Netherlands as well as 8 foreign sales subsidiaries
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Situation and Challenge

  • Several small subsidiaries with overlapping functions
  • No clear alignment of production plants
  • Parent company exerts only rudimentary leadership over subsidiaries
  • Sales performance flatlining for several years, EBT low to negative
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Objective and Tasks

  • Tightening of legal structure and reduction of complexity in the organization
  • Creation of a shared-service center for sales, R&D, procurement, FI/CO, HR, IT
  • Target: EBIT > 10%, EBT > 6,5%
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Measures and Approach

  • Aggregation of production and consolidation of sales subsidiaries
  • Reduction of management tiers (focus on divisions)
  • Building the shared-service center
  • Introduction of a homogenous ERP landscape throughout parent and subsidiaries – SAP S4/HANA
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Results and Achievements

  • One plant closed, remaining plants aligned towards single-origin
  • Double usage of country platform companies as part of the distribution network
  • Establishment of a management company with shared-service center for sales, distribution, R&D, procurement, FI/CO, HR and (leaner, faster, more efficient)
  • Supply Chain newly structured and creation of a JIT center
  • Sales + 38% vs. 2020, EBT increase of +8,5 % in 2022

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