Network/ Footprint Optimization
Consolidating 2 North American Manufacturing Facilities at Global Industrial Products Manufacturer
Created business case and closure plan for consolidation of 2 facilities (located within 6 hours drive) as part of worldwide sourcing strategy. Total COGS, overhead and SG&A cost-savings from the consolidation are estimated at $6MM, while one-time costs are estimated at $8MM. In addition, over 50% of key personnel decided to stay on and move to the other facility.
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Assessing Product Design and Network Simplification Opportunities at Global Environmental Machinery Manufacturer
Analyzed product portfolio and design platforms, manufacturing and engineering facilities, and cost structure to establish cost reduction opportunities at a machinery manufacturer with operations distributed over 13 facilities in 8 countries. Due diligence identified $23-39MM (12-21% of total COGS) in cost savings from standardizing/modularizing product line and executing a low-cost manufacturing strategy, simplifying/consolidating the manufacturing and engineering network, and reducing material, labor, and freight 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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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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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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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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