About the client

The client operates in the Food market segment. It has multiple manufacturing facilities across UAE, Africa, Indonesia and India, and they only deal with a handful of approved suppliers, thereby maintaining their quality standards. It is well established in the global market with several branches and a wide distributional network supported with cold storage and warehouses spanning over 1000 MT and a fleet on temperature controlled vehicles. For over 25 years, it has been serving the food industry with an enormous array of competitively priced products. Their attention to customer service and quality control stands impeccable, categorizing them as industry leaders.

Issue at hand

The GM of the company had calculated projections of gross margins of over 20%. However, the company was operating at gross profits of roughly only 9%. The GM felt a need for probing into the accounting department.

Solutions

Leap was initially tasked with inspecting the accounting department to look for any issues. Upon discovering no discrepancies there, Leap then investigated other departments and found out that the lower margins were attributable to the operations department. Three certain issues were identified and subsequently rectified through a string of operational audits.

Outcome

The assignment proved to bear much fruit with the margins of the company shooting up from 9% to 24% in a relatively short span of time.

Further, Leap’s success lead to the GM awarding another task to Leap, to scale the operations of the company to the next level. Leap began the scaling of operations by tailoring a Business Planning Process. This involved–

The changes strengthened the operations of the company, and within a year of our association, our client’s revenue figures had increased to about 200%.