Case Studies

Working mainly in the chemicals and food ingredients industries here are some summary case studies of Arkaro’s successful client projects.

Cost reduction project management

A USD 800 million food and beverage ingredient supplier hired a large consultancy to identify cost reduction opportunities for its business. Whilst the insights gained were first class, the organisation was struggling to move into execution mindset to secure the needed cost savings. Arkaro was engaged to help build the missing pieces including

 

  • Project management tools to help measure baseline performance, establish meaningful targets and monitor performance.
  • A managing process to ensure prioritisation on the right work and address project execution challenges.
  • … and perhaps most importantly supporting and coaching people through the change. Project management, with broad visibility on activity, had not been part of organisation’s culture creating some concerns as the work started.

 

A pilot programme was established in North America. Two years later, the five year programme has secured in excess of the target and the organisation is transformed to adopt a continuous improvement mindset and behaviour.

Sales & Operations Planning implementation

A medium size European food ingredients business was struggling with poor customer delivery performance. Efforts had been made to use sales and operations planning (S&OP), but the design of the process caused the team to be over-whelmed by transactional detail and it was eventually abandoned. Arkaro helped the business team re-design the S&OP process to work at the appropriate level of detail and time horizon. By selecting relevant KPIs the business was able to target key areas of underperformance and resolve successfully.

Enhancing profitability

A joint-venture was facing a profitability challenge. Shareholders were becoming increasingly uncomfortable with investing more cash into the business with low profitability. The need for a turnaround was clear but there were differing views on which customers to target, which investments to make, and where to target cost savings.

 

Arkaro was engaged to help drive insightful analysis of the drivers of cost and profit, and model the financial impact of various strategic choices and facilitate decision making.

A small food ingredients supplier found itself with an extremely complex customer and product portfolio – and a very low profitability. The management team had been tasked to drive major improvements to the business profitability. As well as helping with analysis Arkaro coached the management team to understand the drivers of profitability and establish rules for simplifying the customer and product portfolio and enhancing profitability.

Working capital improvement

A multi-national agricultural and industrial products distributor had been recently acquired by private equity investors. The new leadership team recognised the urgent need to reduce working capital with initial focus on sourcing. Arkaro engaged with the team to change the mindset and recognise working capital productivity as a key driver of growing business value. Building on this new perspective, Arkaro quickly facilitated a plan with USD 40 million savings qualified and an execution process developed. Within weeks of starting the project millions of savings had been secured and a managing process established to ensure capture of the remaining plan.

Innovation strategy and execution

Mark can adapt on his innovation consulting experience to the start up world. Founders from an EPFL, Switzerland spin-out engaged Arkaro to develop a go-to-market strategy. There was strong belief in the technology but the team lacked market insight and experience to move forward. By transforming thinking from asset forward toward a market back approach, opportunities were explored to find potential fits for the technology. The discoveries help secure seed-round funding. However, choices needed to be made, with a strategy process, for successful execution. The start-up is now focussed executing selected targets with pilot and commercial supply chains planned.

More to follow..

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