Alco Bauelemente GmbH -
the national leader for winter gardens

Beginning of the decade, in the wake of the economic crisis the market for conservatories had fallen, and hence the result of the company Alco. Further losses were foreseeable due to the short order backlog and declining margins as a result of competition for the remaining customers.

After discussions between the family-members, Mr. Nicoloso was engaged to lead the company out of the red. The owners wanted to make sure that an outside restructuring expert understands the philosophy and values of the company and focuses on a sustainable way.

After a brief analysis, it was clear that much of the revenue was lost in the organization and process steps. A complex product like a winter garden needs a tight manufacturing process and assembly. All details must be specifically calculated otherwise loss is predictable.

First, the IT and production planning were revised radically to monitor actual figures and compare them to planned numbers in a timely manner. Exceptional cost spoilers were identified quickly, and the production and assembling schedules changed accordingly. This channelled improving margins during the year and a positive profit forecast for the subsequent year. All these rounded off by introducing a comprehensive management information tool including a cash-flow forecast.

Mrs Christa Gaetz-Thurnher, Managing Director: "The situation was at that time not solvable without outside assistance, Mr Nicoloso and his team have managed to overcome the crisis in partnership with us."

By introducing a remuneration system, the sales team was extra motivated and a new pricing policy led to a further increase in sales. If previously the client received all extras in a flat-rate, in the new pricing list he paid separately.

All measures have been implemented successfully and rapidly. Furthermore, Alco could close the P&L in the restructuring year balanced despite all restructuring costs and subsequently returned into profitability.

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