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Capability

Inventory Optimization

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Direct Marketing Company
Developing and Implementing Enhanced Inventory Management at Large Direct Marketing Company

Developed strategies to optimize inventory to leverage new scale to deliver $20+MM (~25%) in inventory reduction. Analyzed historical demand/inventory to create segmented inventory strategies (e.g., buying closer to demand, everyday item replenishment, new item demand forecasting). Built a tool to assist with everyday inventory replenishment. Turns improved from 1.76 to 2.15 and peak inventory reduced by $10MM.

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Sporting Safety Equipment Company
Enhancing Forecasting, Planning, and Product Lifecycle Management in Post-merger Environment at Leading Sporting Safety Equipment Company

Assisted 4 client teams and trained client personnel during a post-merger replenishment system enhancement and inventory reduction effort. Developed a centralized inventory and planning model by merging information from 2 separate operating entities. Achieved $8+MM reduction in inventory in 9 months.

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Climate Control Products Manufacturer
Establishing Operation End-vision for a Fast-growing, Entrepreneurial Climate Control Product Manufacturer

Conducted a 3-week operations diagnostic to establish an end-vision for optimizing the clients’s manufacturing, supply chain, and engineering operations. Gotham developed a solid fact base of the client’s operations, including demand patterns, inventory, labor efficiency, product complexity, and cost structure. Working with management, Gotham created an end-vision to transform operations and generate both real bottom line benefits – 600bp EBITDA improvement, 20-30% reduction in inventory, and 30% reduction in the plant footprint – and capability enhancements (faster speed to market, improved quality, etc.) that will allow the client to capture market opportunities and drive future growth. The company’s board wholeheartedly backed this end-vision and asked Gotham to help accelerate capture of these opportunities.

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Specialty Foods Manufacturer
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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Direct Marketing Company
Capturing Sourcing and Inventory Opportunities at Large Direct Marketing Company

Assisted management team in capturing $10+MM in sourcing cost reduction and $20+MM in inventory optimization opportunities identified during operational due diligence. The effort included developing new sourcing function and processes, crafting a strategic sourcing approach including a business case for Asia Sourcing Office, re-sourcing 15,000+ China-sourced items ($100+MM spend), and creating robust inventory management approach/processes.

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Apparel Producer
Rapid Inventory and Supply Chain Cost Structure Diagnostic at Niche Apparel Producer

Conducted an inventory and cost structure diagnostic and created a plan for capture of opportunities at a recently acquired private equity portfolio company. Identified $11+MM in inventory reduction, $1.2–1.9+MM in overhead expense reduction, and $0.4–1.2MM in freight cost reduction opportunities.

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Industry Expertise

 
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Consumer
 
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Food & Beverage
 
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Healthcare
 
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Industrials
 
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Energy
 
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Services

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