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Business Recovery in Food Services

The client

Specialist sandwich filler distributor
Operating nationally from 3 separate warehouse sites
Recently acquired following receivership

The challenge

Identify the reasons for insolvency

Implement a rectification programme

Return the company to profitability and growth as soon as possible and with minimum investment

The solution

Following an intense review period into the structure of the company, its marketplace, customers, internal personnel and financial structures, The Consultancy Company established a recovery plan based around headcount reduction, people and processes coupled with a renewed focus on sales.

Lack of central control was identified as a key failing and the business was quickly re-engineered from 3 profit centres into one single business. Poor performing staff were removed, including the Finance Director and we filled the role of Interim Managing Director whilst a full time General Manager was appointed.

The three Regional Depots were subsequently closed and centralised into one operation whilst transport costs were reduced by 30% by restructuring delivery routes.

In parallel, the telesales team was centralised in one location and incentives introduced in order to re-focus them on added value selling rather than just order taking. The field sales team were also incentivised and re-positioned into areas with greater potential. Finally, customer service was enhanced by enabling day 1 order for day 2 delivery.

Benefits at a glance

  • The business was returned to profitability in 3 months
  • 10% increase in customer base
  • 20% increase in route profitability
  • New management team put in place, operating a programme of continuous improvement

 

 

 

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