Recent Impact Stories
Business challenge:A diversified group was on a rapid growth for around a decade. The business growth and commercial success resulted in distortions creeping in organizational structures and HR policies and practices, thus risking efficiencies and growth.
How we helped: Focus was paid to identification of gaps in existing structure, functional classification, creation of new operational divisions, introduction of employee grade system, and market alignment of pay structures.
Result: The middle management was strengthened. This allowed the top management executives to focus on more important issues of strategic planning and decision making for the expansion of the organization rather than being involved in day to day operational issues. Rational grade structures, clear job descriptions, roles and responsibilities were put in place and management systems at various operational levels were evolved. This exercise enabled the organization to be better equipped while moving further on its path towards the envisioned future.
Business Challenge: A medium sized manufacturing unit had stagnant growth, lack of co-ordination, unclear reporting structures, lack of job clarity, lack of ownership and absence of effective performance measurement.
How we helped: WOne undertook an exercise of mapping the management processes. The information flow, decision making, and clarity of job-descriptions, motivational and structural issues were identified. The process flow was then plotted and best practices were introduced.
Result:There was an improvement in the motivation and productivity levels. Clear roles and responsibilities led to better efficiencies, better utilization and more cordial environment with improved inter-department communication and coordination. The overall improvement in the working environment ultimately translated to improved growth and profitability for the company.
Strategic Production Planning
Business challenge: A company was involved in the manufacturing of building material. With increase in order book, the company found it challenging to plan production.
How we helped: WOne focussed on reducing the amount of rejected material by developing an efficient production planning system. Keeping the production requirements of the company in mind, WOne developed an easy to use Graphic User Interface (GUI) based solution with a redefined algorithm for production planning.
Result: The company found itself better equipped to cater to urgent orders using the new production planning system. This improved turnover as well as the company’s reputation in the market. Further, rationalization of product mix and lower inventory levels reduced the working capital and related interest charges to the company.
Business challenge: A company pioneering in the manufacture of one type of building material saw its sales getting affected due to increased competition from new entrants into the market.
How we helped: WOne thoroughly analyzed the market and strategies used by the competitors. The findings shed light on the areas requiring improvement. These included the pricing policy, need for market information and better advertisement, and improving stockist network and motivation of the marketing team. Comprehensive sales MIS were devised and implemented.
Result: Sales grew at the rate of 10% per month for the next six months followed by further quarterly growth of 15% for next two years. The company was not only able to create a premium position in the market and keep the competitors at bay but also increased its footprints to newer, more profitable geographies.
Business challenge: A medium sized company was producing wide range of superior quality products which acted as raw material input for large manufacturers. The company's profitability went through erratic growth phases due to problems in production, inventory for the large variety of products, fluctuations in raw material prices and fluctuating demand of the product mix.
How we helped: Activity based costing was used to determine contribution of various products and based on this analysis and the market potential, the product mix was rationalized. Strategies were developed to improve the marketing of the products bringing in more customer focus.
Result: The company shelved non-profitable products and improved marketing. The average profitability margins per unit sold improved from 5% to 12%. Inventory carrying cost also reduced by 24% and the forecasting improved leading to better co-ordination between production and marketing.
Optimizing Foreign Currency Risk
Business challenge: The company was in the business of trading goods, sourcing its goods from various parts of Latin America, Africa and Middle East and selling them in Asia-Pacific region. The company was finding it difficult to manage their transactions in various currencies of the regions and the exposure to exchange rate risk.
How we helped: Using complex financial modelling and simulations, WOne scrutinized the nature of risks in various transactions. The study revealed that currency risk was one of the most important reasons of losses and uncertainty to the profitability of the organization. Various currencies were classified based on the volatility and Value At the Risk (VAR) model, an easy to use "financial calculator" was developed which could be easily used by the managers in evaluating risks and rewards of various trading transactions.
Result: The volatility of the profitability of the company reduced from 18% to less than 5%. The company officials, with the help of financial calculator became confident about dealing with risk exposures. The system enabled the company to price its products on the basis of risk involved in it which gave them additional margin of safety.