In pursuing its growth strategy through acquisitions, a Danish-owned label printing group consisting of five companies bought a further five print companies from an ailing competitor.
Whilst this transaction was unfolding, a Norwegian-based packaging company with two label printing sites bought a majority shareholding in the Danish group.
The newly formed group entity consisted of 12 factory sites: 6 in the UK (one of which was the largest label printing site in Europe), 2 in Norway, 1 in Denmark, 1 in Sweden, 1 in Germany, and 1 in France.
The new owner wanted all 10 newly acquired companies completely integrated into the culture and systems of the Norwegian group.
The Approach
Financial performance assessments were conducted for each of the 12 companies.
Operational performance assessments were conducted for each of the 12 companies.
Customer and product analyses were conducted for each of the 12 companies.
A technology inventory was conducted in each of the 12 companies.
Performance improvement plans were developed for each of the 12 companies.
A group-wide stock rationalization and reduction program was initiated.
Group-wide critical item purchasing was introduced.
Site-by-site investment plans were developed to update aging equipment.
Group-wide digital workflow technology was introduced.
An SAP implementation in one company, partially completed at the time of the takeover, was managed to completion and then extended to other companies in the group.
The Challenges:
Each of the companies had its own systems supported by different organizational structures, processes, and IT systems, operating in different geographical locations and embracing six different languages across the group.
Some of the companies shared similar printing technologies, while others had unique printing technologies.
Unionized resources were defensive about their jobs, processes, and technologies.
Some companies were operating with underutilized capacity and inefficient processes, failing to achieve their sales and margin targets.
There were redundancies and overstaffing.
Regulations differed from country to country.
The Achievements
Customer service promise increased from around 38% to a guaranteed 98% next-day delivery.
Performance improvements were achieved through line balancing, changeover/setup reductions, scheduling improvements, better capacity utilization, and technology focus.
Financial performance improvements were achieved through the implementation of LEAN principles, focusing on waste reduction.
Strategic procurement was introduced to increase buying power and reduce unit costs.
Proactive customer stock replenishment was introduced to drive repeat sales cycles.
R&D investment was maintained for NPD and the introduction of new technologies.
Finished goods stock was reduced, with redundant stock written off.
The Ask:
The Ask: