The following encapsulates an informative and thought-provoking conversation I recently had with strategic planning expert, Greg Bengston.
Historically, Greg Bengston’s European organization was operated in a very decentralized fashion. This resulted in having a large factory footprint and high manufacturing costs, which put them in a position with under-utilized capacity. Greg was charged with bringing cost and utilization under control.
“An in-depth analysis was completed including a customer mapping process to identify where volume was being produced and the customers being served by each production location. The team then evaluated the cost impact of closing certain locations and to where production could be shifted to achieve a net gain in production and delivery costs.
“Once identified, I led a project to close two factories and transfer those volumes to other factories in the company production network. This involved product reformulations, customer approvals, and new manufacturing procedures.”
Bottom line? Greg’s program of restructuring delivered an overall savings of $22 million carved out of the business’s cost structure and a 24% savings.
Watch full video interview below.
Contact Greg via LinkedIn or his Career WebFolio©.
Fred Coon, CEO
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