For a large retail company with many branches – turnaround, training and transformation from HYLMAN

For a large retail company with many branches – turnaround, training and transformation from HYLMAN

The client and context:

The client started a new wholesale division in recent years and wants to transform and improve the administration, control and operations of its entire division.

The client wants to start the restructuring in this wholesale division, before proceeding to reorient and reform the profitable divisions of the parent company through structural changes, to target new values and bring about an improvement in the Group’s financial results and operation.

The challenges:

  • The client’s concerns regarded the entire operations of the new department ie: human resources and management of its teams, organization within the store, logistics and delivery, relationships and efficiency with suppliers, proper accounting and financial objectives, certification, control and compliance with legislation and regulations.
  • Increased pressure from the parent company to “hit financial targets or quit”.
  • Internal problems in people management and relationship between senior managers.
  • High level of employee turnover due to poor performance and other reasons.
  • Very poor recruitment policy leading to unqualified or unsuitable hires.

What have we done:

  • We have temporarily staffed a CXO (Chief Experience Officer, which is a senior executive responsible for capturing & representing customer needs as well as designing and executing customer & experience strategies) to oversee the operations of the entire department and all the other managerial responsibilities for a few months and we were overseeing how it all worked.
  • Created registers of risks, company routines and people performance and kept a live shared log with management.
  • Identified, recorded, reported and evaluated issues and operational problems in stores and manufacturing facilities.
  • We communicated with suppliers and customers, sought continuous feedback and explored areas for improvement.
  • We evaluated the current digital tools in use and supported the implementation of ERP, CRM and other systems.
  • We researched current suppliers and compared them to others in the market through standard procurement channels to ensure that the amounts spent represented the respective product value.
  • We audited marketing activities, third-party service providers and cash outflows for customer acquisition and retention and analyzed spend per customer and average conversions.
  • We supervised the accounting activities and continued to audit the accounts.
  • We looked at the barriers that prevent the client from achieving certifications of international standards.
  • Organized and conducted weekly workshops for all management and staff members to bring them together.
  • We trained management on how to better run their business.

What we achieved:

  • The management improved efficiency and effectiveness.
  • Outstanding productivity gains in a relatively short period of time.
  • Improved sales, profit margins and return on investment for shareholders by the end of the first year with expectations to grow exponentially in subsequent years.
  • A well-equipped team of experts in their respective fields.
  • Clear weekly, monthly, quarterly and annual KPIs for all departments.
  • Establishing monthly company meetings to raise issues, discuss concerns and explore the future.
  • Clear roadmap to certifications.
  • Disconnecting from lower performing/costly suppliers and re-engaging with better quality and lower cost suppliers.
  • Healthier value chain.

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