The business of a medium-sized industrial measurement technology company was characterized by low growth and weak earnings. The interim manager was tasked with realigning the company's strategy, eliminating weak points in the processes and developing sales in Germany and certain regions of Europe.
Driving forward the efficient use of resources
The interim manager first analyzed the processes from a customer's inquiry through to the delivery of the order. This revealed that human resources were being wasted at numerous points along the value chain. For example, pricing was laboriously determined from various sources such as printed gross price lists, customer discount lists in Excel or lists of customer conditions. Deadline tracking and the prioritization of technically demanding requests also consisted mainly of loose paperwork without collaborative work.
Now, conditions and special prices are anchored in the customer master data of the ERP system and linked to the technical variant generator for the measuring devices. This eliminates all external condition lists and the printed price list is replaced by the prices in the system. This makes the entire pricing process significantly faster and more transparent. Price changes, such as an annual price increase, can be entered into the system quickly and easily.
SWOT analysis for strategic realignment
The interim manager accompanied the project work at the operational level at the same time as a strategic realignment project. The company's current position in the market was examined in a SWOT analysis workshop. The client's two main competitors served as benchmarks. The analysis of strengths, weaknesses, opportunities and threats led to a modified strategic direction for the company in terms of its product portfolio and sales organization.
Increasing efficiency in the sales organization
When analysing the sales activities, it quickly became clear that the sales department was using a disproportionate amount of resources for self-administration. The sales force was tied up processing technical clarifications and processes within the organization. This time was lacking for customer territories and market observation. The interim manager responded to this by streamlining and standardizing processes.
Some sales partners, such as sales representatives in various regions, were hardly bringing in any new customers and had no significant customer visits to report. Following a corresponding evaluation, the company replaced selected national and international partners with new ones. In addition, new sales staff were recruited.
Furthermore, a new reporting system was introduced on the initiative of the interim manager, in which important customer meetings or visits are documented in a traceable manner. At the same time, a process organization supported by task management software was introduced within the company. This has made it possible to record and manage pending customer requests for technically demanding inquiries with priority control across departmental boundaries.
In addition, the company's existing IT is being used much more effectively.
Significant growth potential developed
Modified corporate strategy, leaner processes and greater effectiveness in sales (also thanks to new sales partners) have made a significant contribution to increasing the profitability and growth of the measurement technology company. According to internal estimates, the savings in internal sales alone are likely to amount to at least 35%.
