Challenge

The customer is a sales holding of a world market leader in the plastics industry. It consists of 8 sales and service companies in various countries and sales representatives in another 6 countries. Sales growth was modest because the holding did not profit of local market opportunities. Profits were low until the crash occured.

Approach

Merging local companies of neighbour countries into larger units.

Cost reduction within the entire holding.

Increase of sales efficiency especially in CIS and Poland.

Introduction of e-commerce

Measures

Poland: Setup of a service center for Eastern Europe as part of the economy of scale approach

Hungary: Setup of an assembly center for Eastern and Western Europe again as part of the economy of scale approach

Ukraine: Market penetration for a new product division; creation of a group-wide application center of excellence.

Russia: Foundation a new sales subsidiary in St. Petersburg, located closer to the major customers

Middle East: Replacement of the regional VP sales

Latvia: transformation of the subsidiary into an independent exclusive distributor

Results

The service level has been strongly increased. Sales have quadrupled in Poland and more than doubled in Ukraine, Russia and the Middle East. The material quota was considerably reduced.

DE: http://www.buehlmann-partner.com/projekte/kunststoff-osteuropa/