What people say about our services

Customer testimonials

“The co-operation between our line organization and Capacent’s consultants with their down-to-earth approach functioned really well. We had not yet found a partner who could perform in the entire spectrum – from the top management all the way to our factory floors, where the vital changes have to take place. But Capacent performed in every aspect; the result speaks for itself.”

Eran Hubert

Project manager - Outokumpu

”Capacent has increased the speed and professionalism in our change work by creating a sense of urgency through clear communication on the reasons for change and detailed targets on various organizational levels. Capacent has supported us in a dedicated manner. We can already see results and expect them to materialize further going forward”

Martti Ala-Härkönen

CFO - Caverion Corporation

“Capacent´s major contribution was their analytical ability combined with drive and true experience from similar projects.”

Claes Engvall

Project Manager - Billerud Korsnäs

Our cases

Spare part pricing and Commercial strategy

Pricing project

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Pricing project

Spare part pricing and Commercial strategy

Aftermarket offering development for a global MedTech company
 
Case description
Audit of current spare parts business and implementation of updated pricing, assortment and supply chain.
Global MedTech company with 5 BSEK turnover.
 
Challenge
Ensuring high spare parts profitability and availability. Historically the client’s spare parts business had no clear ownership and responsibilities. Basic routines and way of working had to be set to build the foundation for future growth and innovation of aftermarket services.
 
What we did
Creation of a new global pricing framework built on a structure and logic that captures the perceived customer value, adapted to the local market conditions and reimbursement systems.
Review of spare parts assortment available for order based on historical sales, bill of materials and market requirements. Extensive clean-up of obsolete items.
Definition of new policies and processes. Implementation of separate financial follow-up for spare parts business.
 
What we achieved
Based on Capacent’s recommendations, the client will update spare part prices generating a price effect of 5-15% per market
Increased internal pricing transparency and a pricing logic that is possible to explain and defend towards customers.
Clear spare part assortment offering and structure in place to follow up the aftermarket business.

Spare part pricing and Sales channel structure

Pricing project

X

Pricing project

Spare part pricing and Sales channel structure

Spare part pricing EMEA for a global manufacturing company
 
Company information
Global automotive and marine appliance manufacturing company with ~20 BSEK turnover.
 
Challenge
The client, responsible for the EMEA aftermarket sales had indicated a potential to raise the spare parts prices. The main challenges of raising the prices was to get a firm buy-in from the After Sales organization and the external sales channel, without upsetting their customers.
 
What we did
Review of the spare part assortment in terms of how to offer and price different spare parts. Created a logical structure that matches the perceived value by the customer where applicable and to secure a discount structure that incentivized customers to improve their business with the company.
Elimination of non relevant assortment, enriched offering through different types of kits and creation of a product structure for the launch of an e-shop.
The pricing project was run in parallel with a reorganization of the clients supply chain network in EMEA led by Capacent.
 
What we achieved
The new methodology was applied on the main assortment and the resulting pricing achieved a 11% point additional revenue effect.

Revenue leakage and Pricing framework

Pricing project

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Pricing project

Revenue leakage and Pricing framework

Assessment of pricing for a Nordic steel distributor
 
Company description
Nordic steel distributor with ~7 BSEK turnover.
 
Challenge
In a strategic review of their organization, the client identified pricing as a key area. Internal studies had indicated a profit potential of around 1% of sales to be gained by improving price management.
 
What we did
Capacent was chosen to audit and provide the client with quick wins, mid term actions and strategic key direction within pricing.
The study enabled the client to improve its discount policies and realize the profit potential in their own pace.
 
What we achieved
160 MSEK in addressable and identifiable price leakages were presented within e.g. freight, general discounting and regional biased discounting per sales organization.

Working capital optimzation

WCM project

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WCM project

Working capital optimzation

Net operating working capital optimization for a Media company
 
Case description
The era of digitalization is affecting the society on all levels, especially our way of consuming media. During 2014, the media group launched a broad change program, with the target of being a leading digitalized media company. The company assigned Capacent to support in releasing cash tied up in the group – cash to be used to finance the digitalization within the company.
 
What we did
The initial analysis conducted was connected to the different business model effects on the balance sheet and income statement. The change work was characterized by a focus on implementing prioritized activities and realize sustainable effects. All done in co-operation with the local organizations.
During the project old habits, truths and ways of working were challenged while new processes, tools and templates were implemented. An important part of the project was to increase the understanding of the balance sheet and implement a cash flow mindset in the organization.
 

Working capital optimization

WCM project

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WCM project

Working capital optimization

Net operating working capital optimization for a Steel company
 
Case description
One of the world’s largest producer of stainless steel. The global financial crisis resulted in 2 BEUR in debt and marginal cash flow. The company management decided to strengthen the capital base and increase profitability with the help of Capacent.
 
What we did
The project started with a general analysis of the inventory situation and identifying realistic targets. It continued with a top management workshop where the structure, timetable and high-level targets were decided.
Scoping and planning of a broad roll-out on all sites was then conducted. In parallel, the top-down targets were further refined by a more detailed inventory analysis on all production sites and service centers. After verifying the analysis with key stakeholders on respective site the project turned in to execution of identified and agreed actions.
The execution was driven on-site with the local organization to ensure the actions were implemented and the value realized and sustained. Clear governance structure and a structural approach on how to drive change was key elements behind the results achieved.
 
What we achieved

500+ MEUR in sustainably reduced inventory within 18 months from start of implementation. One of the project key success factors was the extremely good co-operation between customer and Capacent personnel all the way from the factory floor to the top management.

Working capital optimization

WCM project

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WCM project

Working capital optimization

Net operating working capital optimization for an agricultural machinery manufacturer
 
Description
The company had a high working capital throughout the group. One driver was the complex flow of materials, which resulted in high inventory levels. Another driver was an unclear strategy on payment terms, both for suppliers and customers, along with a high share of overdue customer invoices. Lastly, no follow-up existed on working capital.
 
What we did
After an initial analysis and workshops, key activities were identified and executed:
  • Optimized inventory management parameters for all items in Sweden and spare parts globally
  • New structure for centralizing spare parts inventory for Europe
  • Invoice and shipment on the same day
  • Re-negotiations with suppliers globally
  • Improved collection process and follow-up of overdue invoices
  • Creation of a KPI monitor in Qlik for all units

Implementation of product pricing processes and a discount framework

Pricing project

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Pricing project

Implementation of product pricing processes and a discount framework

Implementation of product pricing processes and a discount framework

Read the full case here: Tikkurila Sweden Case

Company description

Tikkurila is a Finish manufacturer of premium paint with well renowned local brands such as Beckers and Vivacolor. Customers include paint professionals, private consumers, and industries.

Annual revenue: 564 MEUR

Market served: Scandinavia, Eastern Europe, China

Challenge

Declining margins in the Swedish market. When the trend turned towards stagnating sales and declined margin structural problems surfaced and became visible within the organization. Tikkurila decided to use external support from Capacent to find the root cause of the profitability issues.

What we did

The quantitative and qualitative assessment led to long-term improvements in product and customer pricing.

Initiated with a pricing and profitability analysis & qualitative assessment of pricing to highlight that profitability issues were due to a large spread in kick-back bonuses and discounts.

Followed with a plan for long term improvements where the analysis revealed variations in price levels that needed to be managed to enable fair pricing towards the customers.

A local cross-functional pricing group was also formed in order to be more proactive in product pricing.

What we achieved

A long term impact on profitability and sales efficiency. We developed a harmonized, actionable discount framework for the professional market that led to increased transparency and clear mandates within the sales organization.

Provided sales representatives and management with the right tools to efficiently generate price level suggestions.

 

Contact us

Capacent_x
Vasagatan 28,
111 20 Stockholm
Sweden
 
Kalendegatan 26,
221 35 Malmö
Sweden

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