Streamlining operations at a global distributor and services company

Significant cost savings of 15-20% and a significant reduction in delivery cycle times

The client’s problem

The client wanted to pursue a profitable growth strategy and to support this, a major IT-system investment was made to assist the operating processes. However, the operational model was not geared for this investment, which consequently was not exploited sufficiently. To capture the full potential and to support the growth strategy the operational model needed to be optimised and restructured so that it could deliver cost savings and capability improvements. The project also had to ensure a robust organisational structure and governance model for the future.

Our approach

Oleto Associates was engaged in a six months project to optimise key operational processes. Firstly, this included drawing a domain map covering all processes including supply chain, marketing, sales, procurement and planning, human resources and finance, and a systematic understanding of each division’s key activities, processes, capabilities, resources, costs, organisational structure, leadership and responsibility roles. Secondly, process improvement levers were identified and potential value improvement areas were estimated, prioritised, and consolidated. Organisational implications were derived from these process initiatives and new governance and organisational model were designed including key management profiles, management committees, and KPI’s. Thirdly, an implementation plan and roadmap for process improvement initiatives and an implementation plan for the reorganisation plan were developed, launched, and rolled out.

Value delivered

Over all, the client experienced significant cost savings of 15-20% and a significant reduction in delivery cycle times.