The Challenge
Our client is a leading manufacturing and service business within in the highly competitive print industry. The company is an industry leader with facilities in Victoria, Queensland and Western Australia. They found themselves in a mature, slow growing but dramatically changing market.
Challenges facing the business included:
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Stagnant grow and declining market share;
- Manufacturing inefficiencies and increasing expenses;
- Declining profits and Return on Investment (ROI); and
- Dysfunctional and antiquated business systems.
Our Solution
A full business diagnostic review of the internal and external factors affecting the business was undertaken. This resulted in Phalanx facilitating the development of detailed objectives and capital, marketing and operational plans.
Recommendations included:
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Increase through-put and develop strategies to reduce production inputs;
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Review inventory holdings and reduce unnecessary overhead costs;
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Revise product lines and eliminate unprofitable lines to increase manufacturing productivity;
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Improve debtor management process and ‘prevention’ strategies for bad debtors;
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Introduce national accounting, production and human resources IT systems;
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Develop in-house and external programs to increase skills and awareness of Quality Assurance and OH&S responsibilities;
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Conduct team workshops involving all staff to brainstorm ideas and ensure bottom-up buy in to reduce change resistance risk.
Results Delivered
Over the next 3 years each recommendation was implemented with the following results:
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Improved organisational culture and employee motivation;
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Increased:
- Revenue by 11%;
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Net profit by 100%
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ROI by 5%
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Waste in the manufacturing process reduced to <1%;
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Reduced investment in inventory by 75%;
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Improved debtor management.