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AN INTERNATIONAL COSMETICS AND OTC PHARMACEUTICAL COMPANY

  • Problem: Under new ownership and senior leadership for a turnaround situation, the company had significant challenges in managing the operational (service levels) and financial performance, with 3 straight quarters of low earnings results.
  • Solution: From the business assessment, four essential areas in which the company was failing were identified -- unacceptable retail service levels, rising cost of goods, poor management of working capital, and excessive SG&A costs. Synergetics developed a turnaround plan to address these failings.
  • ROI: Service Level Improvement Fill Rate from 85% to 97%; Working Capital Improvement with Inventory Reduction 17% ($120M base); Annualized P&L Savings $26.2M with COGs -6.3%, EBITDA+4.2%

The turnaround plan focused on several areas where drastic improvement was required to improve the company’s operational efficiency and financial viability:

  • Sales and Operations Planning / Forecasting
  • Retail Service Level Management
  • Working Capital Management (Inventory reduction, Payables, and Receivables Management)
  • Materials Procurement (with focus on COGs reduction)
  • Freight Management
  • Organization Design and SG&A Cost Reduction
  •  Facility Rationalization and Closure

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