In 2012, A large international manufacturing company purchased a smaller player in their market. After the acquisition, the firm was seeking benefits of the new organizational structure to increase efficiencies and impact EBITDA.
To reduce the structure of non-product related costs by 1M+ using the combined purchasing power and exchange of best practices.
1. Costs were analyzed comparing top and bottom-line figures. This resulted in an initial set of savings initiatives on a department and project level.
2. Targets were set for different savings areas, and initiatives were delegated throughout the organization to 25 managers and employees including purchasing manager, country CIO, controller, CEO, CFO, supply chain director, etc.
3. Project governance was setup including a monthly steering committee to monitor the project’s progress. This steering committee included CEO, CFO, Supply Chain Director, Controller and Treeveo.
During the first 6 months, more than €500K of savings were realized in an organization that had already undergone 7 years of costs savings projects. The project focused solely on non-product cost, and after one year, 1M+ in savings were secured.