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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Turning Around a Complex Manufacturing Operation to Enhance Productivity at Tier 1 Automotive Fuel Tank Supplier
Eliminated 60% of process steps and reduced process cycle time by 40% by changing the organizational culture to focus on business objectives, synchronizing the supply chain, and redesigning processes to minimize hand-off and eliminate non- value-added work. Implementation resulted in $15MM in annual savings.
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An Effective, Actionable Growth Strategy to Quadruple Revenue at Leading Power Electronics Company
Developed a pragmatic growth strategy to grow an unprofitable $25MM revenue business to a $100MM, 20% EBITDA business within 4 years. Effort included first developing the target product strategy based on market segmentation and analysis, competitive assessment, and product portfolio and capability analysis, and then creating product development, sourcing, branding, marketing, and channel strategies. Initial annual savings target of $2.7MM accomplished within a year before top-line growth kicked in.
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Creating a Fact-based, Realistic Strategy for Performance Enhancement at Leading Industrial Machinery Manufacturer
Conducted a 2-week diagnostic of current performance as a first step in helping craft and execute an operations strategy. Specific elements of the proposed strategy included: (1) outsourcing non-core activities; (2) rationalizing the vendor based and developing focused supplier partnerships; (3) segmenting operations (equipment vs. consumables) to improve supply chain management; and (4) Moving towards standard and modular system design to greatly simplify inventory and production. Short-term cost savings of $2MM successfully captures and $3+MM longer-term savings capture on track.
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