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Developing Operations Strategy

The Situation

Stack’d was engaged by an industrial equipment dealer to help rethink and optimize its branch dealer network to increase profitability without sacrificing customer service. The dealer had traditionally grown through acquisition by purchasing independent dealer groups, but had never optimized and integrated the operations of its acquired facilities.

Our Approach

To help the organization optimize its branch dealer network, the Stack’d team:
  1. Reviewed the current status and historical performance of each the organization’s branches.
  2. Oversaw the collection of customer feedback on what they need and want from their equipment dealer.
  3. Identified new and creative branch alternatives to deliver equipment and product support to the organization’s customers.
  4. Provided recommendations of the facility types and optimal geographic centers the dealer should operate within, supported by detailed financial analysis.

Value Received

The recommendations proposed enabled a forecasted internal rate of return of between 25% and 30% for a modest capital investment while maintaining over 90% of its geographic coverage. Unfortunately, leadership never acted on the recommendations leaving the project as a lost opportunity. Contact Stack'd Consulting to learn more about this project!

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