Operational Transformation
Establishing Efficient Organization Structure And Processes To Drive $100MM In EBITDA Uplift
Conducted 12-week operations diagnostic to identify opportunities to streamline and reduce cost of client’s operations. To this end, Gotham: redesigned the corporate organization; surveyed 300+ front-line employees to understand their activities; visited multiple local markets and toured homes; mapped all processes front-to-back; and conducted deep-dive analyses of the client's operational performance to establish and quantify savings opportunities. Gotham identified opportunities to increase the client’s EBITDA by $100MM and developed project charters, role-specific KPIS, and a technology plan to jumpstart the capture of identified opportunities. The client launched the implementation effort immediately, with organizational restructuring implemented within 4 weeks.
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Establishing Cost-focused Operational Processes to Enable Rapid Cost Savings Capture at Premium Personal Care Products Company
Identified $9-12.5MM in cost reduction opportunities, which required addressing CosmeticCo's critical gaps in operational basics, which had become exacerbated by fast growth, and its limited understanding of/focus on actual costs. Within 4 months, over $7MM in cost reduction opportunites confirmed or detailed, with $2.5MM already captured on run-rate basis. CosmeticCo continues to implement detailed-out changes to complete capture of near-term savings and then pursue longer-term opportunities.
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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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Strategic Merchandising to Drive Growth at Large Catalog Retailer
Led transformation of merchandising group from item-pickers for catalogs to fact-based multi-channel category managers. Started with assortment optimization, quickly yielding ~$7MM in savings. Then developed processes for all key elements of strategic merchandising and supporting planning and reporting tools. Transformation has positioned CatalogCo to grow top-line and EBITDA via fact-based precision and a new agility in new product, placement, and ad-spend decision-making.
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Operational Basics, Waste Reduction, and Productivity Improvements to Turn Around Declining Performance at Stationary Products Manufacturer
Identified $2+MM in opportunity from focusing on operational basics, e.g., measurement & reporting, material and labor procedures, and production scheduling. Implemented a paper waste measurement system to identify major sources of loss and then addressed root cause issues (e.g., setup waste, end-of-roll waste, material handling waste, and in-process waste). Within 6 months, material waste more than halved (from the original 40%+ levels) and labor productivity went up 15%.
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Developing and Implementing Enhanced Inventory Management at Large Direct Marketing Company
Developed strategies to optimize inventory to leverage new scale to deliver $20+MM (~25%) in inventory reduction. Analyzed historical demand/inventory to create segmented inventory strategies (e.g., buying closer to demand, everyday item replenishment, new item demand forecasting). Built a tool to assist with everyday inventory replenishment. Turns improved from 1.76 to 2.15 and peak inventory reduced by $10MM.
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