The factory ran at a loss, demanding constant subsidies. Turns out — the money was on the shelves.
SITUATION
Manufacturing company, ≈€6M revenue. The factory ran at a loss, needed constant cash injections from the owner, the warehouse was frozen with material, the books spread across a dozen disconnected programs. Each finished product carried ~70 SKU components. The request sounded like «we need to automate». But automation is a tool, not a diagnosis — we had to understand why a product profitable by revenue was eating the owner's money.
WHAT WE FOUND AND DID
- Procurement was deliberately over-bought — to «optimise VAT». Tax savings cost real working capital
- Consolidated ten disconnected programs into a single accounting product
- Rebuilt purchasing logic: from «buy more» to «buy what you need»
- Built production and procurement planning tailored to the plant
- Set up an SKU-level report: stock + confirmed-order demand + on-order — as basis for decisions
RESULT
| Warehouse | ×3 smaller by volume and money |
|---|---|
| Working capital | Back in operation |
| Owner | Subsidies → profit distributions |
| Dead stock | Almost zero — recycled or scrapped |
| Number of programs | Ten → working minimum |
A large warehouse isn't reserve safety or a tax win. It's company capital that has stopped working.