Strategic review of a subsidiary business

TRANSFORMATION

ISSUES

  • Improving the organization and the model based on a post-production residues collecting negotiation contract of a group subsidiary specialized in waste collection. The collecting is done  everydays with a maximum volume limited to 7.000 tons. 

  • Identifying the sources and causes of income loss for onerous contracts, in order to implement growth recovery paths.

SOLUTIONS

2EI has crafted different scenarios, taken into account diverse logistical factors and implemented a cost-benefit summary.Then, recommendations have been proposed and  a negotiation model has been built. 

Regarding onerous contracts, 2EI has applied its methodology as follows:

  • A strategic and operational diagnosis through interviews with the members of the management team,

  • An analysis of main losses,

  • The identification and the prioritisation of operational and commercial improvement factors,

  • The elaboration of a business case.

BENEFITS

  • Reorganization of the current collection thanks to logistical changes and implementation of a negotiation tool. 

  • Reports of loss-making contracts optimization and implementation of a pricing tool for an asset class. A selection is done for contracts that must be renegotiated or deleted, the follow-up of a strategic action plan has to be clarified.