Organisational Development
and Restructuring
Hear it from those we've worked with.
OVERVIEW
The project was for a major FMCG that employed 7000 employees spread across 17 sites.
​
The manufacturing and distribution for each site was overseen by a General Manager who reported into an Operations Director.
As a result of increased supplier pressure on costs, it was agreed to establish a new operating model to reduce costs and improve overall distribution times.
CHALLENGES
The single General Manager structure and location of the manufacturing facilities had a significant impact on overall costs, in particular, distribution costs.
Following an initial assessment, it was identified that there were 2 main causes for the issue of excess costs:
​
-
The General Manager structure created a dichotomy between manufacturing costs and delivery times
​
-
The distribution of product from 17 sites was not cost-effective in terms of location and market demand.​​
Reduced operating costs
by £7M PA
Here's how we did it:
SOLUTIONS
1
2
3
ANALYSIS OF REGIONAL DISTRIBUTION CENTRES
​
ENHANCING THE NEW STRUCTURE
​
PHASE 2 - NEEDS NAMING
​
​
COST-BENEFIT ANALYSIS
1
The project began by assessing suitable Regional Distribution Centres and conducting a cost-benefit analysis on the closure of distribution facilities and opening up key Regional Distribution Centres.
General Managers were placed at risk and new job roles for a Site Manufacturing Manager and a Site Distribution Manager were created. A full assessment and selection process took place and unsuccessful candidates were made redundant.
Site Manufacturing Manager
+
Site Distribution Manager
+
This was minimised by offering alternative employment at a lower level to that of the previous General Manager role.
2
ENHANCING THE NEW
STRUCTURE
This structure was enhanced by creating Regional Manufacturing and Distribution Managers who reported into a Manufacturing Director and a Distribution Director. These roles were also created through rigorous analysis, job descriptions compiled, and a competency-based selection process was undertaken to fill these roles.
Distribution
Director
Manufacturing
Director
Distribution
Manager
+
Regional
Manufacturing
Manager
+
Following the new structure, specific Key Performance Indicators were put in place for Manufacturing and Distribution.
RESTRUCTURING
3
The third phase of the project involved the closure of certain distribution facilities at site level and the creation of greenfield Regional Distribution Centres.
This involved employee realignment and a recruitment process to ensure successful mobilisation of the new Regional Distribution Centres.
7 Trade Unions in each
of the 17 sites.
No employee unrest.
A method recognised by the UK Government as "the model for change".
IMPACT ON PERFORMANCE
Overall annual operating costs decreased by £7M per annum and ensured a more responsive distribution network with focused role descriptions and an organisation structure that reduced manufacturing costs whilst decreasing delivery times to the end users.
​
The overall project from planning to implementation of the Regional Distribution Centres took 2 years and was managed with no employee unrest, even though each of the 17 sites had 7 Trade Unions on each site.
​
The unique partnership approach with the 7 trade unions was recognised by the UK Government as the model for change within the United Kingdom in a leading food manufacturing environment.
Unique union partnership recognised by UK Government as
the model for change
in a leading food manufacturing environment.
Annual operating costs decreased by
​
£7M
​
NO
EMPLOYEE
UNREST
I worked with EVJ & Associates for several years and watched them entirely transform employee engagement and relations in a national food manufacturing and distribution company.
This work enabled large scale reengineering and modernisation of the supply chain ensuring competitive growth whilst reducing costs. If you're looking for someone with Human Resource expertise and vast experience of change and transformation, look no further.