TORC

Reducing Post-Merger Duplication

Consumer Food Company

The Challenge

Our client, as a result of merger, had surplus production capacity, two sales organizations and two IT systems in a Division.

Torc Response

By effective leadership, an internal team and our turnaround specialist reduced the number of operating plants, chose a single IT platform and welded two sales organizations into one over a two-year period.

The key ingredient was experience and guiding a management team, who on their own were uncomfortable dealing with the new circumstance. In due course, the team took the opportunity to make step changes in operating practices in the business.

An example is a logistics redesign for a key depot, moving product-in to one side of the building and product-out to the other side. This eliminated permanently wastage of 3.5% due to some product getting overlooked in the FIFO sequence and never getting into the market because of best before date issues.

Results Achieved

The Division became the top performer in terms of return on capital and sales and reached its potential. The management team developed into a strongly cohesive team capable of dealing with the ongoing challenges of the business.