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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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Medical Products E-Retailer
Deciphering and Controlling Outsourced Distribution Cost Structures at Medical Products Ecommerce Retailer

Modeled the warehouse, outbound freight, inventory, and inbound freight cost structures of a 3rd-party logistics company in the midst of contract renegotiations and a move to a new warehouse. Identified $1.3MM in financial exposure and weaknesses in contracted outbound freight pricing which drove operational instability, resulting in a 22% reduction in the acquisition price.

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Direct Marketing Company
Positioning the Buyer for a Fact-based Bid and Subsequent Rapid Savings Capture at Leading Direct Marketing Company

Identified $14-29MM in relatively easily achievable savings (sourcing, freight, and catalog opportunities, along with a $26-37MM potential from inventory reduction), which collectively far exceeded management projections. Due diligence scope included China sourcing costs, outbound freight, catalog printing/mailing costs, call center operations, warehousing and inventory. Client, a mega-PE firm, won this hotly-contested auction. After deal closure, helped management team capture identified opportunities.

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Household Cleaning and Scented Products Manufacturer
Uncovering Cost and Inventory Savings Opportunities and Assessing Operational Capabilities at Licensed Brands Household Goods Company

Conducted 1-week opportunity assessment for inventory, labor, material, freight, distribution, and overhead costs from both standalone and synergistic perspective. Identified $3-4MM in cost reduction opportunities and $4-5MM in inventory reduction opportunities. Client acquired the company and merged it with a portfolio consumer goods company. Subsequently, assisted in capturing $4-5MM in inventory and $2MM in freight savings at this growing company which became one of the largest suppliers to big box retailers.

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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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