Case Study
Procreo Enterprise™
Details
Company Name: Hidden for Privacy
Revenues: £10.2 bn
Main Reason for implementation: 77% drop in profits
Main results after implementation: 45% profits recovery
Date: Dec 2018
Website: Hidden for Privacy
The company was hit with 77% fall in annual profits in 2018!
Predictive Ltd approached the Company with the intention to build a business case to solve the issue of falling profits!
Why We selected Procreo?
Earnings were hit by a squeeze on profit margins at Waitrose thanks to the Brexit-linked weakness of the pound – pushing up costs at the same time as the supermarket was trying to keep a lid on prices.
The group chairman, pointed to “subdued” consumer demand during a challenging year which also saw a costly shake-up including 1,440 redundancies.
He said further pressure on profits was expected in coming months amid continuing economic uncertainty and fierce competition. Sales at its department stores had been “significantly impacted” by the March snow.
Pre-tax profit for the year to 27 January fell to £103.9m while the employee-owned partnership’s bonus scheme was cut to 5% of salary – down from 6% in 2016/17 and 10% the year before that.
The bonus pot of £74m to be shared by 85,500 workers compares to an £89m pay-out the year before.
Analyzing Our Problem
The main problem stemmed from the fact that our retail operations were affected by supply chains delays due to different factors and by the impact of the Brexit process on our operations as well as on our suppliers. We thought that the only solution was to reduce the number of employees and make some staff redundant. However, Procreo™ helped us to identify leakages and malperformance in different micro-entities which were affected by our supply chain delays. It also helped us identify what is the best solution to address an issue. In most cases, the solution was to address different factors which were not related to employees. By using Procreo™ we had better insight on where the real problems were, and following its Suggestions Engine, we were able to make informed decisions and generate value!
Partially Customising the Solution
Predictive® was contracted to implement Procreo™ Enterprise solution. However, the data at he Company required some massaging. They wanted to customise a small portion of their integration engine in order to seamlessly adapt the platform to our operation. This was done in less that one month, and all our data islands were connected through Procreo™ middleware integration engine, and the application was processing a huge amount of data consolidating everything in one single release of the truth about our enterprise. The beauty of what Predictive® team has done, is that we didn’t need to invest in any staff or any modifications to our systems or processes. They adapted the system to our operation!
The Results
The day we implemented the solution we learned about the top factors which were affecting our profits. Thanks to Predictive® Procreo™ Enterprise Suggestions Engine we are identified several areas of malperformance. After a couple of months the results were amazing!
%
Increase In Profitability
%
Lower Cost
%
Better Products Pricing
%
