Make Vs. Buy
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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Outsourcing Non-core Operations to Improve EBITDA, Avoid CapEx, and Reduce Operational Complexity at Specialty Industrial Equipment Manufacturer
Identified potential for outsourcing non-core activities, created phased plan, and helped with phase 1 (PC board assembly). Prepared client teams to handle subsequent outsourcing targets. Annual conversion and material cost savings ranging from 6% (transformers) to 20% (stuffed PCBs), with $4.5MM in near-term capital avoidance.
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Rapidly Establishing Manufacturing Outsourcing Economics And Requirements At Family-owned Food, Personal, And Home Care Products Manufacturer
Conducted rapid operational due diligence to establish manufacturing outsourcing economics at a family-owned food, personal care, and home care products manufacturer. Gotham quickly: built a bottom-up view of the target’s cost structure, current product costs, co-pack costs, and organization structure; conducted plant walkthrough and interviewed operations management; and interviewed companies in food and personal care products outsourcing. We established that outsourcing economics are slightly favorable as logistics and G&A would generate sufficient savings to more than offset a slight increase in food manufacturing cost. As our assessment indicated higher costs and risks associated with outsourcing food products, our client successfully pursued a restructured transaction of carving out personal and home care brands and products.
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Outsourcing to Achieve Service Enhancements and Risk/Cost Reduction in a Post-Merger Banking Environment at Major European Bank
Created tactical plan for radically reducing the cost of US Dollar clearing and NY branch funds transfer operations. Focused on treasury functions of money market and foreign exchange, from front office deal origination to back office booking, and SWIFT message generation to FTR CHIPS/FED execution. Outsourcing resulted in $1.5M in administrative overhead savings, higher service levels, and significantly reduced risk.
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