This case study outlines the strategy used by Webb Group to significantly impact the bottom line of a prominent beef and cattle enterprise over a 90-day period. Implementing a wide range of initiatives, Webb Group was able to generate benefits of $845k within the first six months, with an annualized benefit projected at $1.2M.
The strategy was built around four key operational areas:
Conversion Systems: Webb Group concentrated on boosting revenue and sales processes, with an aim to increase weekly carcass output. They refined sales team structures and implemented an online sales platform that also served as a promotional tool. The company also developed a strategy to monetize byproducts and introduced a cut-to-order strategy, aiming to realize an additional $300 per animal in byproduct sales.
Delivery Systems: This phase was dedicated to increasing productivity and decreasing costs. Webb Group put systems in place to balance the workflow and enhance safety standards in the processing operations. In addition, a plan to offer third-party processing services was developed, opening up a new stream of revenue.
Management Systems: Webb Group prioritized establishing critical controls and visibility over financial operations. They operated from a 13-week cash flow model, established controls over cash management, and implemented basic expense controls. An Executive Dashboard was introduced for better oversight and performance tracking. Regular meetings ensured efficient functioning of farm and processing operations.
Financial Systems: The focus here was to simplify financial management. Webb Group aligned intercompany transactions, established an operating budget, and streamlined the process for monthly closing. A financial model was introduced to enable more visible and controlled costs and revenue, which was instrumental in making timely and effective decisions.
Organizational changes were also key to this plan. The Founder of the beef and cattle enterprise was assigned the role of Brand Developer, while Webb Group managed the processing facility and its finances, operations, and personnel. Webb Group also took on the responsibility of developing a sales strategy for the beef brand, leading to profitability.
The result of this well-structured, coordinated strategy was a notable transformation of the beef and cattle enterprise’s operations, leading to substantial improvements to the bottom line. This case study showcases the power of a well-planned, coordinated strategy in revolutionizing business operations.
