The client
Spanish company established with a number of factories in the north of the country. The product range goes from bread loafs of different varieties, cookies, cakes, pastries.
The challenge
- A division of this company manages a network of more than 100 stores in which the products of these factories are marketed, but also a series of other items are sold, ranging from beverages, other foodstuffs and even newspapers.
- The group is considering how to optimize the management of this division
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- investing more
- acquiring talent tailored to the needs
- by ceasing this activity
The solution
- The management of this division requires profiles and dedication different from those common to the group’s factories; Product Purchasing, Shop Assistants and Facility Management of the store network.
- Definition and sizing of an organization with the competencies to manage this business
- Construction of critical size scenarios to amortize management costs based on business volume.
- Benchmarking of human resources costs and materials acquisition costs
- Taking into account the increase in the volume of business generated in the factories
Results
- The study of the retail market shows strong competition between the different players
- Promoting their own products in these stores requires logistics outside of the existing distribution networks.
- The margins of this division are not aligned with the margin ranges of the company’s other activities.
- It was decided to cease the activity
- Repositioning a portion of the staff in industrial positions
- Identifying potential buyers for the activity
