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The client operates in the machinery equipment space, with sales in over 90 countries and a manufacturing footprint spanning four continents. Recently acquired by a new owner, the company aspires to become the global industry leader, achieving double-digit organic growth in both existing and new market segments over the next five years.
The company has a history of operating in a steady-state environment, devoid of major disruptive activities or occurrences, and has not undertaken significant growth efforts within short timeframes before. The industrial strategy has predominantly relied on the ‘as we’ve always done it’ approach, leveraging old cash cows and customer relationships with relatively predictable demand patterns.
A first assessment revealed that capacity would be a major bottleneck, along with the potential for significant structural cost reduction if production could be located closer to market demand.
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The chosen solution outlined a roadmap for restructuring the manufacturing footprint. This involved closing, relocating, and consolidating production from Europe to Eastern Asia, regionalising supply, and transferring production from Asia to Europe. The plan also included significant capacity expansion in current European and Asian plants, along with new routes to markets for new segments.
An operational excellence journey was initiated, delivering both a short-term action plan for quick operational wins and an implementation plan for a global Production System to ensure continuous improvement, cross-learning, and standardisation.
In summary, a supply chain strategy was developed from scratch, securing immediate and future growth capacity, and delivering significant cost reductions globally.