The French subsidiary of a medium-sized German metalworking group lacked a clear strategy due to its varied history. The current interim manager was commissioned as managing director to realign the company both strategically and organizationally.
The company produces sophisticated parts for the automotive industry from steel blanks using turning, milling and drilling. At the beginning of the interim manager's tenure, turnover was 3.6 million euros per year. However, the earnings situation called the company's continued existence into question.
Complex production without a clear focus leads to high costs
The interim manager identified a whole range of causes for the unsatisfactory earnings situation. These included, above all, a very differentiated production of different material groups (from steel parts to non-ferrous metals) as well as very different batch sizes for very different customer groups - with correspondingly high set-up times and costs.
In order to change this initial situation, the current interim manager developed a new strategy. He convinced the stakeholders to develop the company into a 100% supplier to the automotive industry and to align all activities with this strategic goal.
Company consistently tailored to the needs of the automotive industry
The interim manager initiated and was responsible for a series of growth-oriented sub-projects for the strategic alignment of the medium-sized supplier. Among other things, he defined a consistent alignment of all corporate and sales activities to the needs of the automotive and automotive supply industry, which was consistently implemented by the employees. This also included parting ways with customers whose products/parts no longer fitted in with this strategic direction.
Intelligent robot solutions increase efficiency and reduce costs
Significant investments were made to increase capacity while simultaneously creating cost reduction potential. This included combining previously separate work processes by setting up and implementing a robot-supported production island and replacing monotonous individual workstations with intelligent robot solutions.
In parallel, investments were also made in the company's infrastructure to create sufficient production and storage capacity.
Reorientation increases turnover by 300% in 7 years
Thanks to its clear strategic direction, the company has been able to significantly increase its turnover each year and achieve a stable positive company result (with a return on sales slightly above the industry average). Turnover doubled within five years and even tripled after seven years compared to the starting point.
It should be noted that, in addition to the clear basic strategic direction, the key to success was the consistent focus on market and customer requirements, a willingness to invest that could not be considered risk-free and the consistent implementation of all agreed measures in concrete operational activities. After all, the total amount invested was significantly higher than the annual turnover at the outset.
