SG&A Cost Optimisation for an automotive components manufacturer

An automotive component manufacturer was concern that its SG&A cost was higher than its peers and continued to increase. There was a resistant to change within the organisation. The global CEO decided an organisation and business process transformation was overdue.

Deploying a team of consultants comprised of automotive expert, process specialist, and lean practitioner, we carried out a transformation in organisation restructure, role & responsibility optimisation, value stream redesign, and business processes change to achieve a sustainable cost avoidance and reduction. The organisation change include the formation of a focused customer centric grouping within the sales team, providing a channel to align key operational functions to sales for optimum customer service and order fulfilment.

The increasing trend of the SG&A Cost was arrested and set to meet the goal of matching the industry standard.