Industrial Distributor Multi-Site Closure

Problem

The organisation operated 14 regional trading sites specialising in buying and selling goods, with each location generating $6–9 million in annual revenue. Due to low financial returns, a strategic decision was made to close five of these locations, impacting 24 employees.

The project faced challenges due to limited travel budget, meaning Stoke was required to manage the closures remotely. The regional managers were supportive and actively sought assistance. Additionally, the executive sponsor had no prior experience in site closures, necessitating structured change management guidance.

Scope and Deliverables

Stoke provided advisory support to ensure a structured closure process with minimal impact on revenue and operations. The key elements of the scope included:

Remote Project Execution: Developed and implemented a closure plan without onsite presence, using remote project techniques.
Stock and Asset Management: Ensured accurate inventory tracking, optimal disposal, and redistribution of stock.
Operational Transition: Facilitated customer transition planning to minimise revenue loss.
HR and Employee Support: Worked with corporate HR to manage redundancy processes and personal relocations.
Project Governance: Established a rigorous planning process, including structured meetings and progress tracking.

Outcomes

Revenue Retention: Transitioned key customers to nearby locations, minimising revenue loss.
Stock Optimisation: Efficient redistribution of inventory, avoiding unnecessary liquidation.
Employee Transition: 30% of affected employees were successfully redeployed, with the remainder receiving redundancy support.
Safety and Compliance: No injuries or industrial lost time during the process.
Process Improvement: Identified and addressed inappropriate operational practices, improving efficiency in remaining locations.

ROI Assessment

Against program and project consultancy and management costs, the average ROI is estimated at 700% with the savings below identified:

ROI Area	Metric	Estimated Value
Revenue Preservation	Customers retained by nearby locations (target 50%)	$15–22M revenue across 5 locations
Stock Optimisation	Redistribution of assets instead of liquidation	$2M+ gross margin generated
Avoided Onsite Costs	Remote execution saved travel and logistics expenses	$150K+
Workforce Transition	30% redeployment reduced severance costs	$300K+
Risk Reduction	No injuries or industrial disputes, avoiding compliance costs	$750K+

Ken Davis

Stoke Consulting

Ken’s senior line and consulting exposure has spanned many decades in metals and automotive manufacturing and distribution, oil & gas and IT services in national and international roles. Ken has delivered direct accountability for effective change strategies, program execution and continuous improvement and innovation in Australia and internationally.