Cost Assessment/ Reduction
We bring our unique mix of financial and operational capabilities and our unwavering focus on financial results to ensure that our clients have clarity on the company’s cost structure and opportunities and that operations improvement initiatives quickly show up in the company’s financial statement. We: rapidly decipher and break down the company’s cost structure leveraging financial and operational data as well as site visits and management discussions; identify key operational levers and their impact on cost; and quantify cost reduction opportunities associated with operations improvement initiatives. We ensure that any cost reductions are sustainable and our clients benefit from them not only during their ownership but also at exit in increased valuation.
Establishing Efficient Organization Structure And Processes To Drive $100MM In EBITDA Uplift
Conducted 12-week operations diagnostic to identify opportunities to streamline and reduce cost of client’s operations. To this end, Gotham: redesigned the corporate organization; surveyed 300+ front-line employees to understand their activities; visited multiple local markets and toured homes; mapped all processes front-to-back; and conducted deep-dive analyses of the client's operational performance to establish and quantify savings opportunities. Gotham identified opportunities to increase the client’s EBITDA by $100MM and developed project charters, role-specific KPIS, and a technology plan to jumpstart the capture of identified opportunities. The client launched the implementation effort immediately, with organizational restructuring implemented within 4 weeks.
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Determining the Right Fixed Cost Structure and Capturing Overhead and G&A Opportunities at Global Industrial Goods Manufacturer
Worked with senior business unit management to develop and implement manufacturing overhead and G&A savings recommendations across NA network. Established a zero-based organizational structure and cross-business unit management efficiency metrics for assessment purposes. First-year run-rate savings were $8.1MM, an additional $2.1MM of savings were targeted.
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Establishing Cost-focused Operational Processes to Enable Rapid Cost Savings Capture at Premium Personal Care Products Company
Identified $9-12.5MM in cost reduction opportunities, which required addressing CosmeticCo's critical gaps in operational basics, which had become exacerbated by fast growth, and its limited understanding of/focus on actual costs. Within 4 months, over $7MM in cost reduction opportunites confirmed or detailed, with $2.5MM already captured on run-rate basis. CosmeticCo continues to implement detailed-out changes to complete capture of near-term savings and then pursue longer-term opportunities.
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Establishing Current and Potential Operations Value of Startup Fresh Soup Company Acquisition for National Fresh Foods Company
Performed operational due diligence for the acquisition of a fresh soup manufacturer that led to no-go decision as original cost savings estimate proved overly optimistic and investment requirement estimates proved too low. Identified stand-alone cost savings, constructed a catastrophe and failure scenario analysis, created a capital expenditure timeline in light of growth requirements and need to adapt process to manufacture U.S. style soups, and established forward COGS by identifying cutoffs for purchasing scale cost reductions and modeling labor requirements against growth targets. Assessed potential synergies, including soup revenue growth through shelf proximity and co-marketing with produce products, reduced soup logistics costs through use of existing produce cold-chain, lower soup raw materials cost through use of current suppliers and scale, and elimination of redundant overhead and SG&A expense through organizational consolidation.
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Generating top-line Growth Through Improved Customer Service at Leading Mortgage Lender
Developed customer acquisition and retention strategy utilizing tiered service delivery mapped to relationship type, profitability, and degree of value added across mortgage products. Created a methodology for linking customer information from several separate databases and maintaining accurate and actionable customer profiles.
Capturing Manufacturing and Logistics Cost Savings Opportunities While Maintaining High Customer Service Levels at Premium Baked Goods Manufacturer
Lowered nationwide logistics/transportation costs via reductions in emergency shipments and outsourcing/consolidating of the carrier fleet and warehouses to a single, third-party logistics provider (3PL). Set lowest-cost freight allocation system targets, defined proposal criteria, and created RFQ. Actual savings exceeded projections by 15% in the first year ($6.9MM EBITDA impact), with maintenance of 99+% fill rate.
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