Distribution & Logistics
Improving Cost-to-serve at Premium Baked Goods Company
Created a new logistics strategy, including implementing a new DSD network and delivery process, developing a new transportation and warehousing strategy, and re-balancing production among plants. Over 75% of the $2.5MM in savings (from a cost base of $12MM) highlighted in the strategy was saved in the first year of implementation.
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Cleaning Up Distribution as a First Step in Establishing a Growth-supporting Distribution Platform at National Seafood Company
Conducted a diagnostic to reduce distribution costs as a part of an effort to integrate the distribution systems of two companies by identifying and sizing cost levers with savings benefits (quick hits, process changes, and cultural changes). Targeted cost savings of $1.5 to 2MM on a base of $7MM, of which $1MM are estimated to be achieved by quick hits alone.
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Unlocking Truck and Parcel Freight Savings at Portfolio Companies of Middle-market Private Equity Firm Freight
Created fact base for leveraging $11MM of freight spend across 3 portfolio companies of a middle-market private equity firm. Facilitated communication between management of portfolio companies to understand service requirements and the manner in which the individual portfolio companies would conduct freight negotiations. Led RFP process and analyzed new bids based on 2 years of historical freight spend. Created an evaluation matrix based on both cost and service to facilitate vendor selection. Purchasing consolidation led to $1.2MM in savings in the first year and improved freight service.
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In A Data-poor Situation, Confirming Operational Readiness to Support Targeted National Growth at Family-owned Specialty Foods Company
Conducted detailed observations of manufacturing operations (evaluating equipment, labor, downtime, changeovers, etc.) and developed bottom-up capacity model to quantify production increases and cost savings. Determined that target’s facility had sufficient capacity to meet 5-year targeted growth projections; identified cost per case savings 15-20% from labor and overhead reductions; found low risk of future operational surprises (e.g., major equipment cap ex requirements, food safety/quality issues, etc.); and provided PE Client with ingoing operational value capture plan. Client moved forward with acquisition and immediately began implementation of Gotham recommended improvement initiatives.
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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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Turning Around Warehouse and Customer Service Performance at Leading Household Products Company
Helped turn around a problematic distribution operation that was creating service problems with leading retailers. Developed standard operating procedures for basic warehouse functions, including inventory transactions, pick/pack/ship operation, cycle counting, and quality audits. Revamped the warehouse organization structure and instituted measurement and tracking to monitor performance. HomeCo now a top 10 supplier to the largest U.S. retailers.
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