The challenges
Pressure on the fashion house’s margins increased in the face of an ambitious e-Commerce growth target and persistent economic uncertainties. High staff costs and complex procurement processes also had an adverse impact on operational efficiency.
Our approach
In the course of far-reaching workshops and a detailed transparency analysis we identified potential levers for improving operational efficiency and profitability. This stage included the analysis of the existing business plan and external and internal benchmarks as well as the identification of quick-wins in the area of sales and pricing.
Deep-dive analyses were conducted in the key areas of strategy, sales & pricing and procurement. Working closely with the company management, hypotheses were developed and concrete optimization measures discussed.
The solution
By identifying potentials for optimization in a range of areas within the company, it proved possible to define a potential EBIT improvement of about 8 percentage points over a period of three years. In particular, short-term successes with a potential of 1.5 percent were shown to be possible in the pricing area.
The medium-term optimization focused on simplifying the supply chains and the reduction of the cost of materials. Over the long term the focus is on the vertical integration and the optimization of the processes along the entire value chain. As a result of the measures developed, the fashion house will in future be in a position to configure its cost structures more efficiently and operate more profitably in the long term.
Find out how your company can also benefit from a sustainable increase in efficiency.
Your Contact
Stefan Roeske