This document provides a summary of the return on investment from consulting services provided by Stratum HR LLP to a fast moving consumer goods company over a two year period. It outlines the key areas of focus which were people development, process standardization, and workspace management. Estimated returns from initiatives in these areas include savings in labor costs, overhead expenses, inventory holding costs, and rental expenses, resulting in a projected total return of 28.85 lacs compared to the 13.20 lacs retainer fee paid, yielding a return of over 2 times the investment.

1. ©
STRATUM
HR
LLP
STRATUM
CONSULTING
FAST
MOVING
CONSUMER
DURABLES
INDUSTRY
APRIL
2014
TO
MARCH
2016

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HR
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2
Table
Of
Contents
Contents
Slide
No.
Return
on
Investment
-­‐
Summary
3
Return
on
Investment
–
Culture
Framework
4
Return
on
Investment
–
People
5-­‐6
Return
on
Investment
–
Processes
7
–
11
Return
on
Investment
–
Workspace
12-­‐13
Account
Details
Managing
Partner
Mr.
Abhishek
Jagasia
Time
Invested
9
Man-­‐days
per
Month
Start
Date
1
April
2014
End
Date
31
March
2015
Date
of
Report
15
May
2015

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3
Return
on
Investment
(28.85
Lacs)
2.19
Times
Retainer
Fee
Paid
(Rs.13.20
Lacs)
People
Development
(11.93
Lacs)
StandardizaVon
of
Processes
(15.14
Lacs)
Workspace
Management
(1.78
Lacs)
Return
On
Investment
-­‐
Summary
Note:
1. ROI
projecVons
have
been
made
for
the
Financial
Year
2015-­‐16
on
the
basis
of
actual
return
on
Investment
for
the
F.Y.
2014-­‐15.
2. Actual
ROI
for
the
F.Y.2014-­‐15
is
0.85
Vmes
of
the
retainer
fees
paid.

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4
Return
On
Investment
–
Culture
Framework
Culture
Framework
ObjecVves
Values
People
ROI
of
Rs.11.93
lacs
Processes
ROI
of
Rs.15.14
Lacs
CommunicaVon
Workspace
ROI
of
Rs.1.78
Lacs

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Return
On
Investment
1. People
Development
5

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6
Return
On
Investment
–
People
Development
People
Savings
in
Owner’s
Time
Investment
(Rs.1.80
Lacs)
Savings
in
0.5
days
per
month
(Sales
Team
Complaints,
Customer
SaVsfacVon
Issue,
etc.)
ReducVon
in
Manpower
Cost
(Rs.8.84
Lacs)
Department
Restructuring
(Employee
strength
reduced
from
6
to
4)
Increase
in
Efficiency
of
Employees
(Rs.1.29
Lacs)
ReducVon
in
Month
End
Dispatch
Days
(from
9
days
to
4
days)
saved
20
man-­‐days
which
were
uVlized
for
other
acVviVes.

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2. StandardizaVon
of
Processes
7

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Return
On
Investment
-­‐
StandardizaVon
of
Processes
Processes
Advanced
Dispatch
Planning
(Rs.9.08
Lacs)
Month
End
Dispatch
Days
reduced
from
9
days
to
4
days
ReducVon
in
Overhead
Costs
(Rs.4.62
Lacs)
IdenVfied
areas
of
cost
savings
&
set
processes
for
the
same
LiquidaVon
of
Stock
/
Scrap
(Rs.1.44
Lacs)
Conducted
Stock
Audit
Exercise
and
idenVfied
non-­‐moving
stocks
that
can
be
scrapped
or
sold

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StandardizaVon
of
Processes
–
Advanced
Dispatch
Planning
Processes
-­‐
Advanced
Dispatch
Planning
Faster
Financial
RealisaVon
(4.44
Lacs)
Faster
delivery
of
goods
to
customers
ensures
faster
financial
realisaVon
thereby
resulVng
in
savings
in
interest
cost
ReducVon
in
Month
End
Dispatch
Cost
(Rs.3.15
Lacs)
Clubbing
of
dispatches
resulVng
into
full-­‐capacity
uVlizaVon
of
vehicles
ReducVon
in
Transport
Cost
(1.48
Lacs)
Savings
through
rate-­‐
negoVaVon
with
transporters

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StandardizaVon
of
Processes
–
ReducVon
in
Overhead
Cost
Processes
–
ReducVon
in
Overhead
Costs
ReducVon
in
Overhead
Expenses
(3.74
Lacs)
Secng
up
of
processes
for
idenVfied
areas
of
savings
in
costs
and
tracking
on
a
monthly
basis
Savings
in
Fuel
Cost
(Rs.0.48
Lacs)
CessaVon
of
obsolete
(owned)
vehicle
usage
Savings
in
Vehicle
Maintenance
Cost
(0.40
Lacs)
CessaVon
of
obsolete
(owned)
vehicle
usage

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StandardizaVon
of
Processes
–
LiquidaVon
of
Stocks
Processes
–
LiquidaVon
Faster
LiquidaVon
of
Stocks
(0.68
Lacs)
Conducted
stock
audit
exercise
and
idenVfied
non-­‐moving
stocks
that
can
be
sold
Scrap
Sale
(Rs.0.77
Lacs)
IdenVficaVon
of
obsolete
stocks
to
be
scrapped

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3. Workspace
Management
12

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Return
On
Investment
–
Workspace
Management
Workspace
ReducVon
in
No.
of
Warehouse
(Rs.
1.78
Lacs)
Space
Planning
&
Management
Savings
in
Rent
and
Other
Related
Fixed
Costs
ReducVon
in
Pick
&
Pack
Cycle
Time

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YOU
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LLP
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