Success Story // Between raw materials crisis and growth spurt – restructuring, investment planning and management development as the key to Bio-Plant-Based success

Management Summary
As part of a 15-month interim project, a leading manufacturer of high-quality organic tofu products was comprehensively realigned. Against the backdrop of rising raw material prices, supply chain problems and inflationary challenges, the GOiNTERIM manager carried out a far-reaching restructuring.

The core of the success was the relocation of production to a new plant (brownfield project), combined with a significant increase in productivity of over 15% and a reduction in the reject rate by 4 percentage points. Through strategic investment planning, organizational development and process optimization, the company’s resilience was sustainably increased and its market position in the organic specialist trade was further expanded. A strong example of change and efficiency in challenging times.

Company
The company, a leading manufacturer of plant-based organic products, stands for quality, authenticity and pioneering spirit in the food industry and has established itself as the market leader in the “organic plant-based” segment. Distribution is predominantly via specialist organic retailers, but increasingly also via traditional food retailers (LEH) – a strategic growth area that should be developed further in a targeted manner.

Initial situation
The company faced considerable challenges at the beginning. The after-effects of the coronavirus pandemic, rising raw material prices, disrupted supply chains and high inflation were putting a strain on the operating business. Added to this was the strong seasonality in the tofu market with typical weakness in the summer months – a problem that the company wanted to counteract with additional sales impetus. At the same time, the earnings situation was no longer satisfactory. The company’s resilience to external market distortions therefore needed to be strengthened.

A key lever for this was the planned relocation of two thirds of production to an existing, previously externally used building in the immediate vicinity of the company headquarters – a challenging brownfield project. In addition to this mammoth operational task, it was also necessary to realign the organizational structure, develop managers in a targeted manner and set the strategic course for the future.

Tasks
The GOiNTERIM manager took over the operational management of the production and technology divisions (COO function) – with a clear mandate: to consistently implement the realignment of the company. The central objectives of the mandate included:

  • Transformation and change management: reorganization of the entire structure and process landscape with a focus on production, technology and employee management in consultation with employee representatives.
  • Establish project management: Introduction of a professional, stringent project management system for investment and optimization projects.
  • Realize production relocation: Complete operational management and implementation of the brownfield project, including machine relocation and capacity expansion through new investments.
  • Develop an investment strategy: Establish company-wide investment planning over short, medium and long-term horizons.
  • Improve quality systems: Adaptation and further development of the existing quality management system to the FSSC 22000 and ISO 9001 standards.
  • Strengthen managers: Restructuring of the R&D department and installation of a new production manager to stabilize and professionalize the operational management level.
  • Ensuring competitiveness: Development of a resilient, future-oriented corporate strategy – with a focus on increasing resilience, profitability and market positioning.

Implementation steps
The operational implementation of the brownfield project was at the heart of the measures. The building, which had previously been used by a third party, was owned by the company and was completely refurbished for production. The interim manager was responsible for the entire implementation: from the technical planning to the relocation and procurement of machinery to the resumption of production operations. Not only was existing technology relocated, but targeted investments were also made in modern equipment to increase capacity and efficiency.

At the same time, investment planning was strategically restructured, the technical infrastructure was renewed and the production environment was optimized – for example by standardizing the manufacturing process, such as the use of the coagulant, and by making targeted adjustments to the respective machines. The organizational course was also set: R&D was staffed with a new team from the second management level, production management was standardized and quality management was systematically revised.

Results
Over the course of the interim mandate, significant successes were achieved that sustainably strengthened the company’s realignment. For example, productivity was increased by more than 15% through targeted process optimization, which had a direct impact on efficiency and competitiveness. At the same time, it was possible to reduce the reject rate by four percentage points, among other things by standardizing important production parameters such as the coagulant and through improvements to the individual machine processes. The complex relocation of production from two existing plants to a new brownfield plant was successfully completed and made a decisive contribution to stabilizing and increasing capacity.

In addition, extensive measures to optimize costs in the areas of materials, personnel and energy led to significant savings. The introduction of long-term investment planning created the basis for a sustainable growth strategy that enables the company to proactively address future market requirements. Overall, the project not only strengthened the company’s operational performance, but also its market position as a leading supplier of organic plant-based products.

Summary
The interim mandate was much more than a temporary management assignment – it was a comprehensive and successful corporate restructuring. The interim manager not only led the company operationally through a phase of massive change, but also created the strategic and organizational foundations for sustainable growth. The combination of operational implementation strength and strategic vision made the project a prime example of successful interim management in the food industry.

Would you like more information or do you have similar challenges? Talk to us, we will be happy to help you!

Dr. Martin Ludwig Mayr, Managing Director
martin.mayr@gointerim.com
+49 89 20 500 8695

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