Performance enhancement of automotive parts retailer

A large retailer of automotive parts in Australia wanted to devise a broad-based performance enhancement program in the wake of an aggressively low-cost entrant.

Strategy& analyzed overall business performance including benchmarking with global peers, diagnosing overall cost performance, and testing capital requirements. Key functions analyzed included merchandising, sales and marketing, IT, head-office support, inventory management, and supply chain. As a result, the client pursued a multi-year change program that fundamentally transformed the organization and resulted in a very successful performance turn-around and subsequent acquisition. The change program included a restructured supply chain footprint, consolidated warehouse locations, a redesigned organization structure, a revamped store format, rebranding, and a changed merchandising range.