Case Study #1

The Company : A manufacturer of electronic and light engineering products with a turnover of approximately Rs.2.5 crores

The Problem : Losses for over 2 years, improper accounting / costing, high outstanding receivables, excess manpower, declining market share, overdependency on one customer, market limited to south India.

Intervention Areas : Business Process Re-engineering, Human Resource Management, Marketing & Sales, Advertising & communication, Finance & Accounting.

The Solution : We started with a SWOT analysis to identify areas of concern. These were then prioritized and work was commenced in first drawing up a series of processes and procedures that would streamline the operations of the company. A number of reports were created and reporting systems established, to enable the MD of the company to get information from all areas of the company operations. A proper system to maintain accounts was established that was overseen by the company auditors. The sales team were motivated through a series of meetings and a reporting system, to collect the large outstanding receivables of the company, from its customer's. A HR policy and an appraisal system were put in place to assess the manpower requirement and also ensure that a professional system of assessment of existing manpower was done. A series of cost reduction exercise in all areas of the company operations was undertaken, to bring down overheads. The excess staff was reduced through a manpower audit, to bring down the high wage bill. A new marketing and sales plans were drawn up, a sales manager recruited and the sales team were trained and motivated to look for new opportunities in a more focused manner. This was to bring down the dependency on a single customer (for nearly 90 % of their turnover).The product mix was rationalized and a proper system of costing was introduced. The company was given a makeover in identity through re-design of logo, business cards, letterheads and product leaflets.

The Result : Today this company has obtained ISO certification, is back to profitability, cash flow has improved, new products have been introduced, expanded their reach all over India, reduced their dependency on one customer to 10 % or less, have new customers and established their own all-India dealer network .

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