Vertically integrated construction materials

Improving throughput and sales distribution

Background

  • Our client is a leader among natural roofing products manufacturers / distributors, with major market outlets in Europe, the United Kingdom and North America.
  • The objective of our engagement was to evaluate the commercial information memorandum, identify potential areas for operational value creation, and highlight any key risk factors i.a
  • Key focus areas included:
    • Sales & distribution
    • Operations
    • Supply chain

Business Relationship

  • We were introduced to the provider through one of our Private Equity partners, a global investor in long-life, high-quality assets.
  • JENTS International initiated & conducted this opportunity in collaboration with a US-based partner.

Approach

  • A small specialist team (topical & functional experts) was deployed to provide both remote and onsite support, highlighting the following operational aspects:
    • Requirement to improve the business’s overall operational maturity, more in line with its size and aspiration
    • Its automation plan (a strategic imperative) was considered too ambitious, presenting a threat to future projected earnings
    • A significant improvement opportunity in Yield was identified, especially where shopfloor Lean Techniques, Operator Development and installing a robust Management Operating System were combined to translate goals into actions, assess outcomes, and conduct follow-up
    • Accelerate the rebalancing of Maintenance Mix
    • Enhance Sales and Account Management principles
    • Targeted opportunity to improve Pricing
    • Develop S&OP functions and Procurement practices

Results

  • Identified and validated overall improvements
  • €16.0 –  €28.8M Top Line
  • €7.2 – €13.9M Bottom Line
  • 12 Risk Factors