GLOBAL SOURCING: PLANT

CASE STUDY GLOBAL SOURCING PLANT

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Global Sourcing – Plant

Global Sourcing – Plant
OVERVIEW

Background European Client set up a plant in India in 2007 in a joint venture with two partners. This was on the basis of an initial order from a key global account. Subsequent orders were not in line with expectations and the investment in plant was falling well below the required sales budget. Virtual Director was approached to help ‘ABC’ to put together a sales strategy that would make the plant profitable. The Challenge Initial order of USD 8M from a key global account was the primary driver for setting up the plant with a total capital investment of USD 12M. Unfortunately subsequent orders were not in line with expectations and current utilisation on some of the most expensive machines was running at less than 30% .. More than 90% of the sales were dependent on one segment and within that, only two key customers. ‘ABC’ needed very quickly to develop additional sales channels and rapidly improve its return on investment. The Assignment Our ‘Virtual Director’ produced a detailed study of the packaging market in India which helped to identify six key growth sectors where ‘high value’ packaging was required. It also identified around 300 potential target companies in these sectors. The study helped provide competitor benchmarking including identification of eleven key competitors with details of their product portfolio and a SWOT analysis . With the backing of ABC, ‘Virtual Director’ held discussions with the Indian Commerce Ministry, and proposed an option that the company utilised an Indian facility to supply the domestic market at competitive rates. Our ‘Virtual Director’ also recommended an amendment in the organisation structure with the employment of an independent sales director and a sales team to target key industry verticals.

THE RESULT

Our ‘Virtual Director’ assisted ABC in building a sales team including working with potential recruitment companies, training sales staff and inputs on commission structure. Our Virtual Director has introduced ABC to some of the key clients in the identified growth sectors. A sales director and sales team has been appointed and under the guidance of our ‘Virtual Director’ is driving sales and opening up a number of new business. Our ‘Virtual Director ‘is also assisting ABC to leverage competitive Indian facilities and enter the emerging Middle East and African markets

SKILLS

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