The nationwide wholesaler accounted for 14% of the market when turnover began to fail - more than the market in general. The wholesaler was at the highest price level in the market - but also with the highest cost level. Therefore, a number of administrative and service functions were centralised, as well as the entire logistics and the outsourcing of transport.
Cost-cutting programmes were put in place and staff were fired. For two years, management succeeded in keeping the profits at the previous levels, but turnover decreased more quickly - and in year 3 profits fell significantly - and there was not much more to go after when it comes to costs, unless you wanted to seriously downsize. The global owners did not allow this!
Consolidation and then growth
Together with Brandculture, a program was launched in which the sales organization's 250 remaining employees as well as the 100 employees in the core functions worked structured and targeted through a process of first consolidation and then growth.
All employees underwent a 2-day program, working to create insights into the company's situation and market conditions. Based on this understanding, 5 improvement projects - all focused on creating customer focus - or through customer focus to consolidate - were launched and within a few months the plan was for sales to grow.
Results
The process has now been in place for 18 months. After 5 months came the consolidation and from month 11 until this month, market shares have been gained. Confidence is noticeably back in the company and confidence in management has now significantly improved relative to the mood when the process started.
The company has good earnings and the French group management is extremely pleased with the reversal of the subsidiary. The change was created without changes to the 2 senior management layers of the company.