Improving operations and profitability in an Automotive Manufacturer
A US-based aftermarket parts company for high quality brake systems and components was facing increased competition from low cost Chinese manufacturers, increased internal salaries and freight costs. The company needed to reduce cost and improve operations and profitability.
A team of three Interim Managers were appointed by a WIL Group company including Head of Supply Chain, Financial and Sales & Marketing. Having assessed the situation, they implemented actions to improve operations.
- Freight cost were reduced by 40%
- Headcount was reduced by 20%
- Financial reporting was improved
- Low volume and low margin items were eliminated
- The company has re-emphasized their high-quality products and added-value positioning
- The company has returned to profitability and is now in growth.