Industry / Focus Industry

Manufacturing Industry
Mechanical Engineering

Line Function / Role

CSO
Chief Sales & Service Officer

 Mandate Duration
(in months)

12

 Revenue
(in million €)

115

 Employees

450

Task:

The goal of the mandate was the stabilization and transformation of the commercial organisation of an internationally active holding company for manufacturers of packaging machines. Through rapid and consistent value creation, a significant improvement in the equity story and exit readiness is to be achieved.

Initial Situation:

• A group of non- or poorly integrated heterogeneous brands
• Completely new management team in a dynamic development phase of the corporate group
• Purely reactive behaviour in the service business, lack of structures, processes and systems
• No central key account management and contract management. Partial strong dependence on individual customers or machine types (cluster risks)
• Decentralised and distributed IT systems, business services are under development 

Objective:

• Stabilisation of critical cash and order-to-cash processes
• Establishment of a scalable after-sales and service business
• Professionalisation of the key account management
• Creation of transparency, structure and control capability
• Support of the exit readiness from a commercial perspective

Approach:

Further relevant implementation measures/steps:

• Finance and Cash Management: systematic clearing of significant open receivables with Key Accounts. Introduction of a weekly accounts payable review structure with clear accountability.
• Order-to-Cash Excellence: Clear definition of critical control points for clean revenue recognition through contract parameters, invoicing logic, and documentation of Factory Acceptance Tests, Site Acceptance Tests, as well as handover procedures. Elimination of error-prone special solutions.
• After Sales and Installed Base: first complete Installed Base analysis across all companies. Identification of massive data gaps as a core problem. Establishing the foundations for active spare parts and service business.
• Spare Parts Business: Classification of spare and wear parts and system-side generation of parts lists. Start of a roll-out routine in engineering.
• Key Account Management: Rebuilding critical customer relationships at management level and clearing complex payment structures as well as establishing strategic initiatives for systematic cross- and up-selling.
• Digitalisation and Tools: Stabilisation and support of a large ERP upgrade with migration to a group-wide central system installation. Introduction of a structured CRM usage. Establishment of a ticketing structure, service hotline, and AI-supported knowledge management system in pilot installations.
• Efficiency Programs: Restructuring and expansion of the Travel & Spend Management system.
• HR & Capacities: Development of recruiting campaigns for critical service roles and identification of structural bottlenecks in the hiring process.
• Business Plan and Go-to-Market Strategy: Development of a business case for After Sales. Establishment of a service partner in Southeast Asia with initial sales successes.

Results (Output):

1. Significantly increased transparency regarding receivables and realised receivable inflow of >1 million €.
2. Consistent addressing and realisation of order intake in the service business (~3.5 million €) and new machine sales (~1.6 million €) as a contribution to the business plan compliant fulfilment of the goals.
3. Organisation & Structure: Formulation and documentation of a target image definition and structure of a global service organisation. Introduction of standardised control mechanisms, such as structured regular meetings.
4. Systems & Processes based on a cleanly analysed installed base for active after-sales business, structured CRM usage and a system-supported spare parts strategy.
5. Identification of ~20% savings potential in travel management and gradual realisation of these potentials through further development of the system and accompanying organisational measures to control employee behaviours.

Impact (Outcome):

• Restoration of commercial control through manageable, transparent sales and service processes based on clearly defined key figures.
• Massive improvement in cash quality with structured cash access and clear responsibilities. Direct impact on liquidity for servicing debt services and the company value.
• Foundation for scalable after-sales business with a clearly defined basis for recurring revenues with strong margin multiple. Thus creating a crucial lever for margin enhancement and valuation in the exit process.
• Repositioning of the group with strategic customers through structured, professional and proactive collaboration with regained customer access, new major projects and increased contract opportunities, among others, for global Master Service Agreements as a result.
• Setting a clear strategic direction for the organisation through a shared vision, defined structures and prioritised initiatives as a prerequisite for sustainable transformation.
• Increasing the company's exit capability. Better predictability of revenues, higher transparency in operational business, scalable service structure and improved customer retention directly contribute to the attractiveness and valuation for investors.