The Client:
The client is a leading Austrian company in the furniture industry, specializing in the manufacture of beds, upholstered furniture, slatted frames, and mattresses.
In addition to a broad portfolio of private-label products for major retailers and furniture chains, the company develops and manufactures products under its own consumer brands. Furthermore, it operates a dedicated contract business focused on the premium hospitality sector.
The company operates five production sites across Central Europe, located in Austria, Hungary, and Romania.
In 2023, the group generated revenues of €143.7 million and employed 2,058 people.
The Project:
After experiencing several prosperous years during the COVID-19 pandemic—driven by increased consumer investment in home furnishings and living spaces—the furniture retail sector faced a significant downturn in demand in 2023. This development had a negative impact on the financial performance of furniture manufacturers.
Against this backdrop, VALTUS Management Factory was engaged to work closely with the management team in designing and implementing a comprehensive programme of operational improvement measures, with a particular focus on overhead functions. The objective was to sustainably improve the financial performance of the entire group.
The implemented workstreams included numerous efficiency enhancement initiatives under the umbrella of a group-wide transformation programme, encompassing the process and organisational alignment of back-office sales, product development, and the contract business division across multiple countries. Additional measures focused on increasing transparency, including the standardisation of costing methodologies across all production sites and the introduction of unified volume reporting. The programme also included the implementation of a leaner organisational structure with significantly fewer management positions, as well as a detailed operational analysis of the group’s primary production facility.
Highlights:
- Analysis: Comprehensive screening of the company’s overhead functions across all sites and countries. Insights were presented in concise, decision-ready reports for the board of directors and supervisory board.
- Potential: Approval of a programme aimed at achieving € 3.1 million in profit improvements and a decision to reduce the footprint of the Anger site by consolidating production into a single production hall.
- Measures: Development of detailed workstreams in collaboration with the management team, documented in a dedicated project management tool.
- Measure Tracking: Quarterly reporting to the board of directors on implementation progress, along with coaching and serving as sparring partners for the executives responsible for execution.