Case study
Retail distributor restructure
A Victorian manufacturing and distribution group engaged BDN when EBITDA fell to 3.5% and six sign-offs were required for every new product order.
Diagnosis
Line-level profit audit showed 20% of SKUs below cost of capital. Approval mapping exposed six redundant management gates.
Design
Exit low-margin categories, launch B2B ordering portal, expand span of control from 3:1 to 7:1.
Delivery
Procurement managed supplier wind-downs; HR supported redeployment; portal went live in tranches by region.
Result
Margin held at target twelve months later; order processing time halved on core lines.
Project gallery
| Unit | Before | Action | After |
|---|---|---|---|
| Core B2B | 4.2% EBITDA | Portal + delayering | 8.5% EBITDA |
| Custom distribution | 1.5% EBITDA | Category exit | Capital redeployed |
| Shared services | High overhead | Layer reduction | 18% cost cut |
"Exiting the loss-making lines hurt—but the portal and flatter structure paid for it within two quarters."
How were suppliers managed on exit?
Structured run-off agreements with legal review—no forced breaches.
How long did the programme run?
Diagnosis and design over ten weeks; portal and delayering rolled out over the following two quarters.
Was ERP replaced?
No—the portal integrated with existing systems; savings came from process and structure changes.
Context
Six management layers slowed product launches; 20% of SKUs earned below cost of capital.
Approach
Category exit, B2B portal, and span expansion from 3:1 to 7:1 with redeployment support.
Outcome
EBITDA margin doubled within two quarters; order processing time halved on core lines.
Portal and category exit
The B2B portal removed manual order entry for repeat customers; exited categories freed warehouse space for higher-margin lines.
Regional portal rollout avoided a big-bang cutover that would have disrupted peak season orders.
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