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Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Materials & ChemicalsExpanding the Competitive Gap: Value-Up Activities at a Leading Paper and Packaging Manufacturer


Looxent recently concluded a 27-month Value-Up project for the nation's largest corrugated cardboard manufacturer, acquired by a top-tier private equity firm. This project, conducted uniquely in both structure and execution, was instrumental in transforming the client's operational landscape.

Embedding Consultants for Strategic Integration

Unlike conventional consulting engagements, Looxent’s consultants were embedded into the client’s strategy and planning team, functioning as an integral part of the organization. This unique arrangement allowed for a deep understanding of internal and external challenges, enabling swift responses to pressing issues and strategic alignment with the management’s objectives. In addition to traditional project deliverables, the team also addressed ad hoc decision-making needs, shareholder requests, and internal operational gaps. This approach empowered the organization to resolve structural inefficiencies, enhance staff capabilities, and establish robust frameworks across its 13 manufacturing plants.

Driving Market Leadership Amid Rising Input Costs

Despite rising raw material costs, the client outperformed its competitors in the first half of 2017, solidifying its position as the undisputed market leader post-acquisition. Competitors began taking note of the client’s operational transformation, with some even benchmarking against their improvements. This market recognition underscores the significant strides made during the project.

Final Phase: Institutionalizing Change and Sustaining Progress

In the final three months, Looxent focused on identifying residual inefficiencies and institutionalizing the results achieved over the preceding two years. The team refined tools and processes, conducted training sessions, and established mechanisms to ensure the client could independently sustain continuous improvements.

Designing the Next Step: Collaboration and Synergy

The Value-Up initiative aimed to establish best-in-class management systems, foster healthy internal competition, enhance operational capabilities across plants, and strengthen cross-functional collaboration. The final phase centered on optimizing synergies and fostering collaboration among the 13 plants to enable efficient operations.

For example, overlapping sales territories—a legacy of historical practices and inter-plant competition—were analyzed, and recommendations for realignment were presented to senior management. Although a sensitive topic, a phased execution plan was developed to address the inefficiency. Additionally, with monthly production and sales planning stabilized, discussions began on transitioning to a three-month rolling forecast to align sales strategies, production allocations, and raw material procurement.

These initiatives were complemented by site visits and cross-functional training to reinforce the project’s outcomes and ensure sustainable operations.

Addressing Residual Inefficiencies to Drive Sustained Change

While the project significantly improved efficiency, operational losses persisted due to structural challenges inherent in managing numerous plants. To maintain the momentum of change, Looxent identified manageable inefficiencies and recommended actionable improvements.

For instance, discrepancies in equipment utilization across the 90 box-processing machines operating in nine plants were highlighted. Plants maintained excessive buffer capacity to address fluctuating demand, leading to productivity losses and increased labor costs. The sales planning team initiated discussions on equipment relocation, shift optimization, and demand-driven production adjustments. Additionally, disparities in material usage across plants for identical products were analyzed, with benchmarking exercises fostering cost-saving best practices.

Client Recognition and Future Outlook

The client’s leadership praised Looxent for its pragmatic and impactful approach, attributing significant performance improvements to the collaboration. Staff members valued the hands-on engagement, which provided actionable insights and professional growth opportunities. Shareholders expressed gratitude for Looxent’s dedication, recognizing the commitment to treating the client’s business as their own.

Looking ahead, Looxent plans to support the client through periodic visits to ensure sustained progress and prepare for a successful exit strategy, continuing its role as a trusted partner in the company’s growth journey.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.