SUCCESS STORY

Heavy Equipment Distribution

 

Leading Company in the Distribution of Machinery for Agriculture and Construction.

Customer Needs

Our client has extensive experience in heavy equipment and has historically focused on sales and service of agricultural machinery. The company was looking for growth by expanding its offering with the construction machinery product line.

To make the decision our client needed to develop the right growth strategy that would take advantage of the thriving economic conditions for that moment.

Strategic and Tactical Approach

ALLIAVANT designed and implemented an organic growth strategy, using the company’s own economic resources generated by strong sales growth. No new capital was needed for growth. This involved:

• Reviewed and established new accounting and financial processes
• Implemented monthly analysis of the financial statements for the continuous evaluation of financial health
• Created a budgetary culture that include a projection of income, expenses, net income, inventories and cash flow
• Three full new branches were opened to serve the construction market
• Launched a bank financing program to promote machinery sales
• Improved the inventory and distribution management to ensure an efficient delivery service of machinery and spare parts in any branch
• Developed an employee performance evaluation system and a program for the recruitment and hiring of new employees
• Implemented training and development plans for personnel at all levels
• Improved the knowledge transfer between the factory and service personnel, ensuring that latest technology and world class practices were implemented. 

Outcome

Working in close partnership with our client, and as a result of the strategy of organic growth, the achievements in two years were as follows:

• Machinery sales growth by 350%
• 170% increase in parts sales
• 400% growth in business value for the shareholders
• A higher level of personnel retention and employee satisfaction
• A strong market share growth
• A distinctive recognition awarded by the factory for outstanding sales performance.