Operations Diagnostic
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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Diagnosing Performance Deficiencies at Data-rich But Information-poor Branch-based Underperforming Business to Identify EBITDA Improvement Opportunities/Plan for Their Capture at Heavy Equipment Rental Company
Identified $6.4MM in quick-win EBITDA improvement opportunity in rental, parts, and services businesses by analyzing the company’s revenue drivers, cost structure, and equipment utilization. Working with management, developed a detailed 6-month implementation plan to enable rapid capture of operational improvement opportunities and to establish long-term strategic initiatives to drive top- and bottom-line growth. Management is successfully implementing value creation plan and, within 3 months, has already captured $3MM in EBITDA improvements (vs. same quarter in previous year).
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Clarifying Channel Strategy, Inventory Rightsizing, and eCommerce Upside
Conducted business strategy assessment to chart the exit path for a PE-owned full-service home-décor importer and wholesaler. To this end, Gotham: analyzed channel profitability and modeled the impact of eliminating brick-and-mortar channels; developed a plan to optimize inventory levels and rightsize the fixed cost structure; interviewed customers to establish the company’s reputation/positioning; and visited competitor showrooms to profile key competitors. With a clear picture of internal opportunities and market and competitive dynamics, Gotham developed a plan to more than double EBITDA through structural cost reductions and accelerated eCommerce growth. The company launched an effort to capture these opportunities to position itself for a successful exit.
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Freight Cost Opportunity Diagnostic and Savings Capture at at Leading Fashion Accessory Importer
Analyzed air freight cost from Asia to identify $3-5MM (32-49%) in cost reduction opportunities from: (1) tighter management of air shipments (including invoice auditing, formal RFP process to find a new freight forwarder, and reduced rush shipments of products and components); and (2) selective migration to container shipments. Helped client capture the opportunities, including auditing past freight bills to discover 13% chargeable weight discrepancy and executing the RFP process to find a new freight forwarder, resulting in a 31% reduction in freight cost. As per our recommendation, Client hired a VP of supply chain to spearhead capture of further savings via continued development of robust processes and migration of increasing amount of freight to sea. A year after Gotham left, FashionCo had dramatically lowered its inbound freight costs and migrated a significant portion of shipments to containers.
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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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Throughput and Cost Improvements to Become a Competitive Full-line Beverage Co-packer
2 week diagnostic that benchmarked conversion costs for the company and identified 15-20% in cost reduction opportunities. The effort indicated that with improved scheduling processes and more efficient use of labor, the company could save at least $1.5MM in the short-term. Recommendations also included putting in place a system to track true costs and performance to enable longer-term improvements.
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