DIRECT SALES

Client

A Direct Sales consumer products company undergoing 40% annual sales growth. Ownership needed to add operations expertise to an unseasoned management team.

Problem

Complexity and scale of the business exceeded the capabilities of the current Director of Operations. Company desperately needed an experienced resource to direct manufacturing and distribution activities. The current Director had submitted his resignation and a professional recruiting service was actively searching for qualified candidates. Several business processes deviated from industry norms and best practices leading to inefficiencies, high costs and underperforming service levels. Customer complaints were frequent and confidence low. Peak season was one month away.

Approach

An XCD senior principal joined the management team and immediately assumed the Director role. As part of the position “turn-over”, issues with operations or affecting operations surface. All issues that are uncovered are documented, some are resolved and others are tabled until the permanent position is filled. In addition, XCD industry contacts were utilized in the search for Director candidates.

Results

This approach allowed senior management to delay the recruiting effort and focus more intently on core business issues during peak season. The client did not feel rushed to fill the position with an under-qualified candidate.

Over 20 key business related issues were identified within the first 2 weeks of the engagement resulting in several initiatives. A new Warehouse Management System (WMS) was selected and implemented, labor costs were reduced by 40%, and order shortages were reduced by 80%, to name a few.

They client eventually found the right candidate with the right skill sets – but within a time frame that allowed due diligence. Operational improvements were realized immediately and the permanent Director inherited a comprehensive list of opportunities on day one.