Doubled operating profit
The client is a production company in the plastics industry.
For years, results have been lower than the industry’s average. StroekenRossieau indicated that a review of the cost price system, combined with the review of the sales prices used, could yield a “quick win”.
The business processes were analyzed and adjusted to the costs and revenues structure. The cost prices turned out to be based on an outdated cost structure. The selling prices were compared with those of other companies in the industry, whose prices for certain components were clearly better.
• Unprofitable orders are no longer accepted
• Selling prices are more in line with the market
• Gross profit increased by 10%
• Costs relative to revenues declined by 6%