• A leading packaging solution provider sought to overhaul its business model to improve overall performance and profitability.
• To reposition and revitalise the business through market evaluation, operational optimisation, and strategic planning for profitable growth.
• Evaluate new markets, optimise business size and cost structure, develop growth strategies, and review the manufacturing process comprehensively.
• Introduced a ROCE-focused business model, conducted a thorough supply chain review identifying improvement opportunities, and significantly reduced operating costs.

In the face of stagnating growth and increasing market competition, a premier packaging solution provider recognised the need to fundamentally reassess and revitalize its business strategy. The company partnered with our expert supply chain consulting team to develop a robust turnaround strategy, centred on a Return on Capital Employed (ROCE) driven business model, aiming to significantly enhance overall business performance.

The primary challenge was the company’s diminishing returns in an increasingly competitive industry, which prompted a need for a comprehensive re-evaluation of its market positioning and operational efficiency. The goal was to not only safeguard the company’s current market share but also to explore new commercial opportunities that could provide a platform for sustainable growth and profitability.

In addition, there was a critical need to scrutinize and optimize the size, structure, and cost base of the business to better align with strategic goals. This included a detailed assessment of the company’s operational processes and financial management to identify inefficiencies and areas where profitability could be improved.

Our consulting firm adopted a multi-faceted approach to tackle these challenges. Initially, we conducted an exhaustive analysis of potential new markets and commercial opportunities to strategically reposition the business. This was complemented by a rigorous internal review of the manufacturing processes and a thorough evaluation of the business’s structural and financial framework to identify cost-saving measures and operational enhancements.

The strategic overhaul began with the development of a new business model that prioritised ROCE. By redefining financial targets and operational benchmarks, the model focused on capital efficiency and maximised returns on investments. This shift not only aligned with the company’s long-term financial goals but also introduced a clear metric for measuring performance improvements.

Simultaneously, we undertook a comprehensive review of the entire supply chain, identifying key areas where efficiency could be enhanced. This review pinpointed specific segments of the supply chain that were underperforming or were over-capitalised, allowing for a targeted approach to restructuring efforts. This restructuring was aimed at reducing excess costs while improving service delivery and customer satisfaction.

The implementation of the ROCE-driven business model and the restructuring of the supply chain led to a significant enhancement in the company’s financial performance. The focused approach on capital efficiency resulted in reduced operating costs and a more streamlined operational framework, which in turn enhanced profitability.

Moreover, the identification of new market opportunities and the optimization of the supply chain furnished the company with a robust platform for future growth. The strategic realignment not only rejuvenated the company’s market position but also fortified its capability to adapt to changing market dynamics, thereby ensuring long-term sustainability.

The profound impact of strategic financial analysis and operational restructuring in revitalising a business is highlighted by the success of our project with the packaging solutions provider. Through a meticulous approach to enhancing ROCE and optimising supply chain operations, the company not only improved its financial standing but also positioned itself for continued success in a competitive industry. The project underscores the critical importance of strategic planning and operational efficiency in achieving sustainable business growth.

Here are five key takeaways that are important for organisation to consider:

1. Emphasis on ROCE:

Prioritising Return on Capital Employed (ROCE) as a central metric in business models can drive significant improvements in financial efficiency and investment returns.

2.Strategic Market Evaluation:

Thorough analysis of potential new markets and commercial opportunities is essential for repositioning a business effectively within competitive industries.

3. Operational and Cost Base Optimisation:

Assessing and optimising the size, structure, and cost base of a business aligns operational processes with strategic goals, enhancing overall profitability.

4.Comprehensive Internal Review:

Conducting detailed internal reviews of manufacturing processes and supply chains can identify critical improvement opportunities, leading to cost reduction and better resource management.

5. Adaptability to Market Changes:

Developing strategies that accommodate changing market conditions ensures long-term sustainability and growth, highlighting the importance of flexibility in business planning.