Erweko was a traditional printing house with a history dating back to the mid-20th century. In 2011, the company was taken over by Kaleva and the printing operations were merged with Kalevaprint under the Erweko business name. Erweko operated as an offset and digital printing house owned by Kaleva Oy until 2018, when it was acquired by Punamusta in an acquisition.
What were the challenges?
The offset printing industry was in a turmoil throughout the 2010s and demand for printing products fell every year. Erweko also had to constantly develop and reorganize its operations. We began working with Erweko in 2016 to shed light on cost and profitability drivers, with the goal of ending a long loss track and making the business profitable.
How we helped?
We built a business-based profitability model covering the entire business, which enabled us to identify and monitor the realized profitability of various locations, customers, production methods and orders up to the operating profit level. This helped focus and prioritize areas for improvement as part of ongoing development and the decision-making process. We assisted the company’s decision-makers in developing their business and profitability from 2016 until the acquisition in 2018.
What were the results?
”Erweko wrestled for years with the downturn in the printing industry with severe profitability challenges. With the help of Wevision Analysis tool, we were able to target both heavy cost cuts and significant development efforts into areas where we knew we had the greatest potential for improving profitability. Without Wevision’s support, Erweko’s staggering, nearly EUR 1 million profit improvement in 2017 would not have been possible.”
Tapio Hedman, CEO 2014 – 2018