Labor Productivity
Rapidly Capturing Manufacturing And Logistics Cost Reduction Opportunities At Ethnic Foodservice Products Manufacturer
Captured $1.2MM in operations run-rate savings in 12 weeks at an ethnic foodservice and retail private label products manufacturer by implementing shop floor management best practices. Gotham worked on the shop floor to: observe operations; identify potential improvement opportunities; provide immediate guidance to client personnel; and troubleshoot and pilot solutions. We improved line through from ~225 cases/shift to ~375 cases/shift, reduced fill weight by 3-7% to minimize overfill, reduce floor scrap by 50%; and eliminated expired rework scrap. To ensure sustainability and further improvements, we: trained client personnel, put in place process changes, tools, KPIs and reporting system; and identified/planned next set of improvement opportunities. Gotham also launched logistics savings capture by developing direct ship pilot and facilitating conversation between company sales teams and foodservice distributors.
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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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Focusing and Accelerating Labor and Freight Cost Reductions at Branded Consumer Goods Company
Identified and help capture immediate cost savings opportunities in a recently acquired portfolio company that fell short on EBITDA target and violated bank covenants. Effort included 3-4 week development of $1-2MM cost reduction plan and 6-week assistance in capturing $900K labor and outbound freight opportunities, accounting for 15% increase in EBITDA.
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Implementing Measurement/Tracking/Reporting To Build Cost Discipline And Capture Material And Labor Cost Savings at Specialty Baked Goods Company
Identified $1.1-1.6MM in cost reduction opportunities in materials, labor, and freight. Launched a fact-based cost-reduction program including ingredient measurement and feedback system, a system for fixed labor standards based on rated line speeds, goal boards to manage productivity targets/performance, and a performance measurement and reporting system.
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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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Sales Mix and Manufacturing Cost Realignment at Specialty Printing Company
Investigated the underlying causes of a downturn in profitability for a $200MM+ buyout portfolio-owned specialty printing company. After identifying both a significant shift in the types of product being sold and a resulting misalignment in facility staffing levels, our team worked with the V.P. of sales, division President, and plant managers to implement changes in sales plans and plant manufacturing strategy. The manufacturing adaptations saved $2.5MM in EBITDA within the following 6 months and the deliberate shift in sales mix resulted in even greater and longer-term EBITDA improvement.
