Manufacturing Strategy/ Roadmap
Establishing a Global Sourcing Strategy to Harvest Plant Consolidation Savings at Global Industrial Products Company
Developed a worldwide sourcing strategy for an industrial goods rollup company. Plans included the closure of 3 plants, consolidation of NA automation to single facility, migration of low-value assembly to Mexico and movement of electronic assembly to Southeast Asia. Total run-rate savings from the project are estimated at $20MM on a total cost basis of approx. $200MM.
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Validating Management's Operations Plan and Identifying Additional Savings at Customized Consumer Products Company
Identified $35-45MM in cost reduction opportunities, 2-3x management’s savings plan, giving our client an edge to win the auction. Despite very limited access to the target’s management, plants, and data due to the nature of the auction, Gotham was able to leverage dataroom information, a plant visit, and our relevant experience to build a solid fact base of the target’s cost structure – including a detailed 4-year line-item-level view of the operational cost structure and an analysis of 2,000-employee workforce linking each individual to the specific cost line in the cost structure – and to both validate and expand savings opportunities via a comprehensive outsourcing/consolidation model and an analysis of sales, marketing, customer service, and G&A costs.
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Determining Plant Closures and New Asset Placement at Large Consumer Goods Packaging Manufacturer
Formulated plant closure strategy and determined placement for the new printing assets by analyzing capacity, loading, customer logistics, and risks for each affected plant. Developed cost saving and one time cost scenarios. Developed business cases for two plant closures identifying $6.3MM in annual savings. Both closures were announced within weeks of the board's decision after the business cases were presented.
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Harvesting Opportunity from Performance, Capability, and Cost Structure Enhancement at South American Industrial Goods Manufacturer
Identified specific actionable opportunities (cost, service, and quality) to capitalize on post-merger opportunities. Created plan to capture significant near term and longer term performance, capability, and cost structure enhancements. Management-led execution targeted to result in $2MM in cost, service, and quality savings (on a cost base of $5.5MM).
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Creating Sustainable Manufacturing Cost Improvements at Leading Industrial Hardgoods Manufacturer
Worked with manufacturing management to re-evaluate the existing manufacturing strategy taking into consideration all sourcing options (e.g. automation in U.S. plants, outsourcing, relocation). Profiled U.S. manufacturing operations by product and process type, and performed comparable profile of selected sited in Mexico and Asia, as well as developed economic profiles for outsourcing options and a business case for automation opportunities. Recommended strategy included moving high-volume assembly to Mexico, consolidating low-volume assembly in a single U.S. plant, selected automation, and outsourcing of non-core operations. Based on execution of our plan, company: captured $9MM in labor savings, eliminated $2MM in overhead, and avoided $6-7MM in capital expense.
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Helping National Fresh Foods Company Sell Itself
Led business development and evaluation efforts for entry into a new market, including market sizing, industry analysis, supply chain design, and financial modeling. Created operations strategy and execution plan based on exploiting existing market power, distribution capabilities, and proprietary technology. Seperately, led M&A synergy assessment involving several potential acquirers. Client company was sold within 6 months and the new business was launched.
