Case study

US CCTV manufacturer

A radical new way of working for a US CCTV manufacturer

Sales significantly below budget, combined with substantial over-capacity and over-manning throughout the business, had resulted in a forecast multimillion-dollar loss for the year for this client. Internal cost reduction plans were felt to be inadequate to turn this situation around.   
   
PA carried out a benchmark comparison of every function in the business, against current best practice. This produced a range of cost reduction options through outsourcing manufacturing and restructuring overhead functions. Additional opportunities were identified to include the restructuring of the broader support organization.

A realistic plan to bring the business back to profit within 18 months was produced encompassing substantial short term cost reductions through manning to best practice levels, outsourcing PCB manufacture and distribution, and rationalizing the business.