A European logistic service provider for temperature-sensitive foodstuffs. With a turnover of €1.6 billion, this company provides specialist warehousing and distribution services for retailers and producers. Among its customers are large retailers like Albert Heijn, Delhaize and Carrefour and large producers like Unilever, Bird Eye, McCain and VION.
The company’s Benelux division, which had a top line of more than €120 million and a workforce of 1,000, was in trouble. It was reporting a significant decline in profitability, an unsatisfactory operational performance, and a fall of more than 75% in its large contracts. Following a management crisis, Gwynt was asked to step in as interim director and put matters back in order. When we arrived, seven of the eight sites were lossmaking. Productivity problems were widespread and large customers were dissatisfied with the company’s performance.
After carrying out a detailed analysis of the situation, we drew up a six-point improvement plan. The aim was to improve efficiency and site performance as quickly as possible. In just a short period, a new organisation was set up and fresh blood was appointed to crucial management positions. This led rapidly to efficiency improvements. Afterwards, focus was shifted to retaining customers, extending and improving contracts and acquiring new customers.
Within ten months, the six-point strategy was carried out and the company was again financially healthy:
- EBIT increased structurally by over €4 million
- Financial haemorrhaging was stopped, locations made profitable, contracts extended and warehouse productivity drastically improved (>40%)
- The company was prepared for sale and has since been sold to a large organisation for a good price. Benelux helped increase considerably the company’s value.