Pura Trading

Japan

A gateway between Japan and the world, creating a world without borders, conserving limited natural resources to protect the environment, and contributing back to the international community.

THE FULL STORY

(4 min read)

Headquartered in Chiba, Japan, Pura Trading* specialized in import and export of goods from across the globe. They believe on the preservation of local communities and the environments to which they reside. Occupying a commanding position in the import export market, automotive engine and parts recycling industry, Pura* wished to continue to grow as they transported diverse ranging of goods to and from multiple regions around the world and source, process, recycle auto parts. The market seemed to have stagnated in recent years, which prompted the management team to engage with Monter.

The founder wished to expand into a new market and to capture new opportunities to grow his company.

Pura* moved from 5 tonnes to processing 600 tonnes a month whilst honing their business processes and growing their operational efficiencies.

THE PROBLEMS AND CHALLENGES

  • There was no Structure and System in Place
    Without foundational business structure and system, it was difficult to maintain progress, move with efficacy, to steer the organization and its team to a new direction, capture opportunities, and to successfully enter a new market.
  • Highly Reactive Organization
    instead of Pro-Active – adapting and evolving to the ever-changing environment, anticipating competition, and taking the lead.
  • Shrinking Auto Parts Market
    The automotive industry was shifting to a new direction with more and more centralized computer controlled engines. Only the original manufacturers were able to service this new type of engines. As a consequence, there was lowering of demand of components and parts.
  • Slimming Margin in the Auto Parts Business
    This business was associated with high fixed costs. Combined with the above factor, the margin was greatly affected.
  • Economic Slowdown Affecting Import and Export Business
    Consumer spending behaviours change had significant impact to the volume of goods in and out of the country.
  • Weakening Japanese Yen Affecting Import
    Devaluation of the JPY currency was diminishing the margin of the import division.
  • Signs of Pressure from Overcrowding General Import Export Sector and Overcapacity in the Local Auto Parts Industry
    There was a real need of product and service offerings differentiator.

OUR APPROACH

We collaborated with Pura Trading* CEO to develop a turnaround and expansion strategy that enabled the company to return to healthy profits, and to enter a new market segment for capturing new growth opportunities.

OUR SOLUTION

Monter’s team current in depth analysis showed that with this current trend continuing, Pura Trading’s* profitability in the import export market and auto parts business will continue to decline due to the changing environment. We recommended the CEO to take a drastic action now before the market condition worsen, move to a new sector and take a lead in this space – achieve new growth.

  • Deploy and Apply the Core Platform into the organization, day to day operation, and perform training sessions of leadership and associated teams.
  • Use the Core Platform to guide the organization into firm actions and Pro-Active mindset –to be adaptive and ready to evolve.
  • Scale down operation and investment on the Auto Parts business – reduce inventory,accelerate sales flow, and divest.
  • Maintain the Import Export business with the current resources commitment.
  • Enter into the plastic recycling business – start with collection and sorting, then cleaning,next expand to processing, and ultimately recycling.
  • Scale up investments, resources, and operational size of plastic recycling business – with periodic evaluation.
  • Further investments into machinery and larger land.

THE RESULTS

Entering into the plastic recycling business had brought Pura Trading* explosive growth outperforming their other businesses by far. Not only our team had guided the business to be the leader of plastic recycling in the region, Monter had successfully elevated Pura Trading* into a new world of growth.

  • A business with structure and system in operation, innovation, decision making, planning, and approach to new opportunities.
  • An effective and high performing organization – measured periodically by KPIs.
  • Successful entrance into a new market with high profitability figures
  • Plastic recycling market industry leader in the prefecture.
  • Very strong financial performance after the execution of Growth Strategy
  • Accelerated revenue growth and continuing trajectory.

23X

Increase of cash flow in comparison to prior engagement

14X

Assets growth in comparison to prior engagement

500-600 ton

Of plastics processed every month

*We respect our client’s privacy and although names have been altered, the results are genuine.

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