Outgrow Consulting

CASE STUDY OF A CLIENT IN ELECTRICAL APPLIANCES INDUSTRY


One of the largest sellers of motors / pumps in the North India region; in existence for the last 40 years.

Background

The organization was suffering from top line saturation with revenues being stagnant for almost 5 years. The EBITDA % was minuscule owing to high raw material & manufacturing cost and a literal absence of after-sale servicing department.

Outgrow Solution

After close observation of factory manufacturing processes and understanding of key business drivers, the Outgrow team was able to deliver the following benefits to the client:

Create a cross functional team involving procurement, production, designing, servicing and quality.

Drive improvement in the product design reducing raw material requirement in the improvised design.

Re-negotiate purchase prices with vendors or negotiating with new vendors to attain lower procurement prices.

Perform data analysis of market rejections to identify target market areas for improved after sale servicing capability through call centers and additional service centers.

Set out strict parameters to quality control to minimize market rejections.

Financial Implications

With the concerted efforts of all the stakeholders involved, Outgrow has been able to turnaround the group by almost doubling the EBIDTA margins. It is expected that on an annualized basis, the company should be able to save at least USD $ 800 K