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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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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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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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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