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Consumer Products

NEEDS-BASED RESULTS

 

Consumer Products

SITUATION

Major manufacturer of exercise equipment engaged The Highland Group to develop and execute a plan to increase earnings and reduce costs.

DRIVER GOAL

  • Generate $5 million in additional earnings, net of fees for the North American division of the business by year end.
  • Double current inventory turns to 5.8.

RESULT

  • Generated $5 million in additional earnings and doubled inventory turns.
  • Recognized savings of more than $1 million.
  • Achieved a 6:1 return on investment.
case study image, CS-136 large

Case Study

Improve Customer Service & Optimize Margins

Issue

A major manufacturer of exercise equipment engaged The Highland Group to develop and execute a plan to increase earnings and reduce costs.

Highland Approach

The Highland Group’s Discovery and Design process revealed declining margins due to poor customer service, ineffective new product introductions, severe quality issues, and out-of control distribution costs. The team designed a plan to target each of these issues, launching cross-functional teams armed with process improvement techniques and implementing work management systems to measure project gains and ongoing performance.

Actions Taken

  • Consolidated satellite facilities and closed three facilities entirely.
  • Initiated operational improvements which provided for reduction in labor force (and cost), overtime charges and heavy equipment expense.
  • Installed process performance metrics in all departments.
  • Moved the product refurbishing operation to free up warehousing space.

generated additional earnings of

$5m

after only 10 weeks

Related Information

subject matter-based

Client Partner

Financial Services, Marketing & Consumer Products

Petrina is a creative, hands-on executive with over 25 years of international business experience with a proven track record of working collaboratively across traditional boundaries and solving complex operational issues. She previously served at the senior executive level of one of North America’s leading financial institutions and several global consulting organizations. There, she led engagements serving industry-leading clients in United States, Canada, England, Germany, Austria, Switzerland, Norway and the Netherlands.

Project Leader

Sales, Marketing & Consumer Products

North America

Bill is a senior project leader with more than 20 years of hands-on experience in assisting multinational companies by deploying his expertise in Lean Six Sigma and Business Process Management tools, tactics and strategies. He has deep expertise in sales and marketing improvement, supply chain optimization, fixed-cost reduction, channel management, total production management, balanced scorecards and post-merger integration.