Creating Conception and Implementation of Various Change Procceses in a Group-managed Company in the Process Industry
Large print plant, approx. 1,500 employees, approx. € 300 million annual turnover, integrated into the group structure
A medium-sized production company with about 1,500 employees has come under pressure due to a significant drop in prices in a highly competitive market. The central task was a considerable cost reduction. The utilization and performance in the production was quite good.
I have been responsible for this project as CEO and in many cases directly and personally involved. Significant cost factors were demonstrably the personnel costs. Therefore, a concept has been developed how these costs could be significantly reduced. The solution was
- termination of the unified tariff and installing of different and specialized tariffs,
- introduction and use of employee leasing models for certain activities,
- in the conclusion of work contracts for clearly defined and recurring processes.
Part of the implementation were also the start-up of subsidiaries to take over parts of the business that had to be transferred. As a result, other tariffs with lower labor costs were used in the new companies, which made the whole company competitive again.
The company has been able to maintain a positive result due to significant cost reductions. Individual production areas have significantly improved their competitiveness compared to specialized competitors.