3SIXTY

Operational Improvement. €3m+ in efficiencies identified

Background & the Client Challenge

Our client, the Irish operation of a global manufacturer and distributer of innovative packaging solutions, knew the Irish site was not operating as efficiently as it could be. It also knew that a number of the reason for this were outside of its control. The Irish Site Leadership Team (SLT) had made multiple proposals to HQ, detailing ways in which the Irish site could be more efficient and effective.

The owner, however, felt that a France-based facility was more efficient than the Irish operation and was therefore considering moving activities from the Irish site to France.

This was a politically sensitive situation given the location of the Irish site and the potential for job losses.

The Irish Site Leadership Team recognised the power that the view of an independent third-party can have in these situations. They also understood that the key to their argument was in having the right data – as opposed to “feelings” and “opinions” about X being more efficient than Y.

With this in mind, and with the future of the Irish site as their only concern, the team made the decision to bring in 3SIXTY.

Working as one team with a single goal, we conducted a detailed operational review of the Irish site. Jointly, we identified areas for operational improvement, as well as alternative future directions the Irish site could take in order to make it an even more strategically important part of the overall group

What We Did

Having made the decision to bring us in, the first thing Irish Site Leadership Team asked us to do was engage with the team of Employee representatives to ensure they were prepared and motivated for the journey ahead.

Jointly, via workshops and one-to-one sessions, we identified and validated both areas for operational improvement as well as viable alternative directions for the future of the Irish operation. This was a key part of the Irish Site Leadership Team’s thinking. Not only did they want to want to demonstrate that the site could be more efficient, they also understood the importance of maintaining – and, if possible, increasing – the site’s strategic vale to HQ.

In parallel, 3SIXTY’s Process Excellence team worked with members of the client’s team to conducted a detailed operational review to identify and identify the associated financial savings.

We put in place a Project Management & Governance structure in place to ensure everything stayed on track while up against an aggressive delivery timeline.

Working hand-in-hand with the Irish Site Leadership Team, we built out a plan which identified €3.4m in savings for the Irish business.

Results

The client had found itself in an extremely challenging situation. The Leadership Team knew that the Irish site could be more efficient and had made previous proposals to HQ about making this happen.

Ultimately, by taking the right approach to presenting their case to HQ, the client was able to:

  • Identify €3.4m in cost savings (against an annual running cost of €15.5m)
  • Lower supply chain costs
  • Shorten lead-time for customers
  • Lower operational costs
  • Reduce work-in-progress level of stock with resultant working capital improvements

To find out how 3SIXTY can support your business, contact BrianOBrien@3SIXTY.ie

Brian O’Brien

Partner & Head Of
Growth Strategies

Get in touch to find out how 3SIXTY can help your business deliver its full growth potential.