Previous Assignments

Troubleshooter, evaluate joint venture

Two years after the start-up, a joint venture between an original equipment manufacturer (OEM) and a universal spare parts supplier, was still not working as expected. Customer satisfaction, sales, profitability and parts availability were all below standard.
Task was to evaluate the current operations, to review the future potential and to make recommendations how to proceed.
OEM dealers were interviewed to clarify market demand and potential sales volume. SWOT analysis’ made of the joint venture and its major competitors. Investigated reasons why the forecast synergy effects could not materialize. Reviewed the working relationships between stakeholders.
Final report contained 3 recommendations how best to proceed together with follow-up plans for each recommendation. Joint venture was folded shortly after.

A pricing system of an OEM with 6 independent pricelists with over 240.000 records was excel-based, manually maintained, missing logical commercial buildup and not consistent for all dealer zones. Resolution of pricing errors consistently occupied 2,0 FTE and triggered sizeable additional indirect costs.
The assignment was to establish a new pricing structure, easy to maintain, less error-sensitive and to supervise operational implementation. Project involved Marketing, Finance, Product Management, After Sales, Customer Support and Dealers.
One single system-driven price list was created from which all other pricelists could be derived by using currency-factors and brand-factors. New commercial trade discount schedules were negotiated with 150 dealers in 80 countries (EAME-region).
Successful and timely operational implementation. New tasks and responsibilities clarified and allocated. Administrative organization secured. Number of pricing records reduced to 35.000. Pricing errors reduced to < 0,02%. Staff reduction of 3,0 FTE.

Within an OEM, structured business planning and internal communications of divisional performance were both virtually non-existent. Manufacturing and Production Planning were mostly unaware of Marketing and Dealer activities and vice versa.
The mission was to set up and lead both annual and long-term business planning processes and to develop internal communications to help improve cross-divisional understanding.
Leading performance indicators of each division were created and monthly interactive senior management meetings organized and presided.
Better understanding emerged for divisional behaviors. Established routine for monthly progress and feedback meetings including varying presentations of key projects. Performance tracking was linked to all the business planning processes.

Manufacturing had difficulty with providing acceptable and reliable lead times. Marketing forecasts were irregular and inconsistent with planning requirements.
The task was to create a sales forecasting routine and to lead the sales & operations planning (S&OP) sessions until these were self-supporting.
Defined (minimum) information requirements for production planning and aligned sales/dealer forecasting formats accordingly. Defined and allocated tasks and responsibilities. Interviewed dealers for feasibility and acceptance. Enforced disciplined monthly follow-up from all parties involved.
Successfully established regular and consistent S&OP routines. Lead times reduced from 18 to 12 weeks. Lead time reliability improved from 62% to 84%.

Parts policies of an OEM with +/- 120 independent dealers were mostly embedded within the minds of experienced Customer Support Staff. Dealers were insufficiently aware of parts handling policies. Customer Support was continuously involved in discussing standard issues.
The task was to create a comprehensive parts policy handbook to serve as reference point for all operational Q&A.
All manufacturers parts policies were consolidated together with the performance standards the dealers may expect from the manufacturer. Manufacturers expectations of dealer performance relative to dealer inventory management and parts availability to end-users was also standardized and documented.
After 15 years, the handbook still exists (with limited changes) and is still used as dealer manifest and reference point for best business practices.

A holding company decided to physically merge the warehouse activities of a universal spare parts supplier into the parts distribution center of an OEM. Cultural differences were significant.
Delegated from the holding, the mission was to supervise the merger and to safeguard the interests of all parties during the relocation process.
Presided weekly relocation meetings. Acted as commercial liaison between executive management of both companies and the holding. Intervened in case of escalating commercial issues.
Relocation was successful and on time. Acted as temporary General Manager of the distribution center until new GM arrived (6 months).

A newly elected President in Venezuela abruptly imposed retroactive import restrictions by suspending the possibility of buying preferential dollars for all imports. The traditional sellers market abruptly changed into a buyers market in 2 weeks time. Price increases of 200-300% on imported goods were no exception.
The task was to secure the material supply for the assembly factory (household appliances) with 200 FTE and to only build directly saleable products to ensure cash flow.
All outstanding orders were cancelled and selectively re-negotiated with suppliers. Production planning was adapted to build directly saleable product. Inventory of CKD kits was selectively cannibalized to support new production schedules.
6 months after the decree was announced, above actions resulted in significant cash flow from saleable products, 70% less spending on imports and 60% reduction of warehouse inventory.