The client's problem
A global supplier of aviation spare parts had invested heavily in global processes and technology but had not seen a significant impact from the investments. The client wanted to explore opportunities to use the new global operating model to fuel growth, drive efficiency, and exploit the group leadership capacity better.
A six-month process was conducted to design the new global operating model structured around three phases. The first phase created a solid fact base to serve as the foundation for strategic decision making. Key facts included detailed revenue breakdown, business volumes, cost breakdown including key cost drivers, detailed breakdown of external spend, FTE overview linked to key activities, mapping of key processes and competitive knowledge. The second phase was focused on identifying significant cost saving levers and cost savings target as well as generating structural scenarios for how the business could potentially operate going forward. Each scenario was clearly linked to a value potential and a set of challenges to overcome during implementation. The third phase was focused on planning the transformation and change management to implement the chosen strategy.
20% in annual cost savings reached within 2 years and strengthening the global leadership group.