For many manufacturing businesses, what was once a clear path to success is now burdened with uncertainty. Today, working incoherently in the manufacturing industry with no viable strategy, particularly if a company relies on traditional machinery for its revenue streams, is no longer a paved way to success.
LOGIC Consulting runs thorough assessment of your manufacturing business and strategically offers innovative solutions governed by today’s needs of the industry within its market. LOGIC offers its meticulous strategies through Organizational Development business processes, structuring, and assessment.
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Manufacturing

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Transform Your Organization Start with LOGIC Consulting

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Case Studies

Case Study: Industrial Machinery and Equipment Manufacturing

Corporate & Family Governance Project

Challenges
  • Centralized decision making.
  • Complete involvement of the shareholders in the daily operation.
  • Lack of a succession plan to ensure business sustainability.
  • No professional board that allows for an external and independent view on the company’s strategies and monitoring its performance.
  • Lack of periodical reporting.
Objective

The owners’ desire was to separate ownership from management, yet prior to their exit they were determined to ensure business institutionalization and sustainability through the activation of a professional board to instill a well governed processes for company performance monitoring, and the on-boarding of a strong leadership team headed by a qualified CEO.

Impact
  • Active professional Board with a rigorous Audit Committee process ensuring continuous improvement and a solid control environment.
  • Company performance significantly improved on a financial, operational, and organizational levels. The Enterprise Value more than doubled (2.2 times) in 3 years.
  • The company issued 2 annual reports since the closure of the governance project and is committed to its annual issuance.
  • A professional CEO was appointed and a successor gradually took charge after 3 years during an overlapping period of 8 months.
  • The family constitution shall serve as a reference in the occurrences of any family challenge.

Case Study: Industrial Machinery and Equipment Manufacturing

Financial Feasibility Study & Financial Model

Challenges
  • Single B2B distribution model without a clear go-to-market strategy.
  • Minimum innovative marketing strategy.
  • Lack of proper financial analysis by SKU.
  • Lack of institutionalization process for issuing standard analytical reports and other financial analysis levels.
  • No clear Treasury strategy.
Objective

To plan for the strategic initiatives that organization’s management is considering (moving into the handles business), to enable a substantial leap in the company growth plans, while supporting the organization management in building the capacity of its management team.

Impact
  • Performed a Competitive analysis versus the handle market leader in Egypt, understood its go to market and pricing strategy.
  • Developed a new detailed and user-friendly model with the client finance and marketing team.
  • Reviewed alternative go to market strategy and agreed on a dual model, B2B as well as introducing new B2C through direct distribution in major cities.
  • Identified the highest and lowest margin SKUs and key components that impact its margin.
  • Performed sensitivity analysis for the various items and identified the ones with the highest impact.
  • Recommended optimum product mix and pricing point by SKU.

Case Study: Crystal Manufacturing Industry

Corporate Governance Project

Challenges
  • Despite the existence of a board, however its practices did not allow it to work on a strategic level and still delved in operational matters.
  • Enhance the reports that the board receives to ensure a better decision-making process and a wider spectrum of the topics being issued; such as risk, succession, high-level strategy progress and governance compliance.
  • There was no clear segregation between the topics that needed to be discussed on an ExCom level and topics that need to be addressed on a board level, causing double work in some instances and lack of accountability in others.
Impact
  • The company has an action plan based on the results of LSI with KPIs and timeframe for implementation, the action plan is tightly integrated in the strategic initiatives the company is currently working on.
  • Board is activated with more efficient dynamics where by discussing more of strategic aspects over operational ones.
  • The company has a full set of reports needed by the board for periodical reporting.

Case Study: Manufacturing Industry

Transformation Project

Challenges
  • Limited growth with shrinking market share.
  • Declining profitability due to: No clear growth strategy, misaligned organization, and weak governance.
Objective

To transform the company’s business into a growth strategy and aligned organization.

Impact
  • Achieve growth to 4.4 bn EGP (250 mn USD) by 2020, at the same maintain healthy profitability in line with the best-in-class industry average ~10%.
  • Identify markets, products, and sales strategies that would enable growth.
  • Align organization structure, capacity, and processes with the growth strategy.
  • Agree on the high-level governance and having a succession plan in place.