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Corporate Functions Op Model

Case Studies
Metcash – Corporate Functions Op Model
Client Metcash
Region Australia
Sector Retail and Consumer Goods
Offering Organisation Design
Buzzwords
Cost reduction Operating model

The Challenge

Metcash is Australia’s leading wholesale and distribution company, providing merchandising, operational, and marketing support to independent retailers across food, liquor, and hardware. ​

Metcash wanted to redesign their corporate centre operating model to be fit for current and future purposes. To stay true to being a low-cost wholesaler at heart, they were striving for a lean, efficient corporate centre which would deliver maximum value for their pillars and could be the strong base for the business as it grows – whilst maintaining the corporate cost base. ​

Redesigning and implementing a new operating model across the corporate functions was an important but complex undertaking, given the cross-functional and cross-pillar nature of the transformation.

Our Approach

  • Running a high pace process that arrives at design decisions fast, redesigning P&C, Finance, Legal, IT and Property functions over the course of 7 months​
  • Leading the development of new op models and structures, challenging thinking using our external experience of redesigning and working with corporate centres in other organisations, industries and geographies ​
  • Mediating difficult cross-pillar design decisions to achieve alignment and enable progress ​
  • Building a quantitative evidence base for assessing the right size of the future corporate centre functions and quantifying the opportunities for efficiencies  

Key Outcomes

  • A new operating model that aligns to Metcash’s strategy and creates opportunities for simplification and scalability. ​
  • Newly empowered corporate functions with streamlined organisation layers, eliminating bottlenecks that had developed over years of organic growth. Clearer task ownership and accountability which will enhance efficiency and significantly reduce duplication of efforts across teams.​
  • A set of proposed immediate changes to key processes that would reduce complexity and completion times​, including progress towards building a more consistent way to serve the pillars on repeatable and transactional activities.
  • Identification of areas for further optimisation/cost reduction, including in third party onshore and offshore teams.
  • Identification of required investment in new capabilities and roles in the mid-term.
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