Restructuring of an international Retail Development Group

Over the course of last 16 months ADMETAM has been working for a large international furniture manufacturing Group on restructuring and re-alignment of the three businesses involved in retail market (Shopfitting, Retail Systems development and Retail Lighting design).

Dramatic decline in sales and inadequate and complex structure resulted in significant losses. ADMETAM has been asked to support the management to develop and implement comprehensive restructuring programme which would not only lower break-even and ensure profitability but also reflect strategic challenges and set path for future growth.

The restructuring measures included significant cost reductions, relocation of complete production site, shop-floor layout optimisation and outsourcing of final assembly and logistics. Standard product portfolio was significantly reduced, and the focus shifted from sales volume to margin as key metric for product significance. The sourcing network has been established in accordance with the new product portfolio, new material group and lead buyer strategy was developed.

Companywide project management standards, systems and meeting structure were developed. In order to stop sales decline and get back to growth, sales organisations were reorganised, and standardised processes and digital tools were implemented. Strategic re-alignment followed the restructuring programme and companies are now rolling-out key strategic projects.