How a Local Milk Processor Became Market Leader

A local milk processing company, ranking third in the Scottish market, had ambitions to expand. The Chairman heard my TYM approach had reduced costs in a similar company and sought my opinion.

Analysis and Findings

After a brief survey, I showed how, by changing the way they worked, they could:

• Increase productivity by over 30% in their current factory.
• Reduce wastage from over 4% to less than 1%.

Which would slash costs, boost profits, and enhance customer service.

Specifically, these improvements would:

• Markedly increase profits, and provide a solid base for growth.
• The productivity boost would increase profits by the difference between sales price and cost of materials of the additional products.
• The wastage reduction would increase profits by the full sales price of the additional products.

TYM Program Implementation

The company formed a small team to work with me on a ten-week TYM program. 

We identified necessary steps, assigned responsibilities, and developed an implementation plan highlighting financial and business benefits. 

The board approved our plan, and over the next six months, I guided the team to realise these benefits.

Transformative Results

At the end of the year, the Chairman invited me to review his financial results. They were a significant improvement over the previous year. 

I also checked my ultimate measure for a manufacturing business. Return on Total Assets (ROTA), where Return is EBITDA, and Total Assets includes debtors and inventories. My target is >20%. His ROTA was 14%. Impressive for such a low-margin product.

Compelling Conclusion

A year later, the Chairman invited me back. He proudly showed me his new financial results, with a ROTA of 20.1%. An astonishing achievement. This success provided the financial muscle for him to acquire competitors and become the market leader in the UK.

Call to Action

Curious about how my TYM program can transform your business? Explore the other pages of this website.