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If your business is suffering from market- driven change, Principality can assist with an independent analysis to quantify the issues and identify the options that will get you back on an even keel.
PCL Business Analysis services consist of proven methodologies for analysis and modelling adaptive to various scenarios. See the following case study on how we assisted a major player in the drinks and beverages market.
Call today to explore how we might apply our expertise in your sector.
The client is a drinks and beverage business with a number of high-profile brands in the wine, sherry and cider market. It operated from four sites in the UK with a mix of sales; processing and packaging; and distribution operations.
The client faced cost competition from European wine producers and recognised that lack of investment in processing, packaging and distribution technology was limiting its competitiveness in the market.
The consultancy brief was to review site and department budgets/plans and consolidate economies of scale. The output required was a quantified, strategic option analysis with outline budget and implementation plan for the recommended option.
The combination of the number of sites, product configurations and method of distribution all added non-value costs.
A customer and product profitability analysis quantified the level of non-value added cost, identifying unprofitable customers and products.
The recommendation was to consolidate all processing and packaging onto one site with an investment in equipment technology and systems.
The product range would be rationalised and distribution strategy refined to reduce the cost associated with the unprofitable products and customers; plus, retain sales levels without the non-value adding costs.
The number of employees was reduced from 4000 to 1500; distribution costs were reduced from £13 to £7m, returning the business to a level of profitability to provide the required return on the level of investment needed.
After five years the business was sold to a major, UK distributer which continues to be a leader and profitable business in this market.
Labour cost were reduced by £40m and distribution cost by £6m. The site overhead cost was reduced by 55% and the sale of three sites provide the investment needed for to deliver the consolidated site equipment, technology and system plans.