Case Study

Reducing Sales Channel Complexity for a $1B Oil Field Service Organization in Latin America

"Complexity within Products, Customers and Markets divides organizational focus and energy leading to lagging results; our ability to reduce complexity and emphasize core competencies allows organizations to realize profits and sell focused products results to their organizations"

Situation

  • The Region had consistently posted healthy Revenue gains over the past three years across each of their 5 primary markets
  • Despite increasing revenue trends the Region struggled to maintain profitability, negative or just above breakeven margins
  • Quality of Revenue was identified as a key initiative to drive gains in profit margin percentage and in absolute terms
  • SLKone Partners were engaged to drive an understanding of poor Quality of Revenue and drive margin improvement

Bespoke Solutions

  • SLKone began by building an understanding of the customer and product portfolio
  • The market was dominated by a few large NOC’s, but de-centralized procurement decision makers added significant complexity in terms of commercial relationships as well as product demands
  • Customer and Product profitability analysis revealed a large number of underperforming products and wells across the Region

Leading With Results

  • 15 point YoY increase in profitability because of reductions in Product and Customer complexity in the SKU portfolio
  • Reduced the SKU portfolio by 13% by rationalizing and replacing low profitability products with higher margin and higher volume products
  • Increased Pocket Share in high profitability clients while passing on lower profitability opportunities through the review of activities and customer profitability, refocusing the organizations efforts to customers that placed high value on the clients deliverables
Case studies and expertise may represent projects and engagements performed by SLKone team members prior to their employment at SLKone
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