Supply Chain Strategy/ Roadmap
Rapid Inventory and Supply Chain Cost Structure Diagnostic at Niche Apparel Producer
Conducted an inventory and cost structure diagnostic and created a plan for capture of opportunities at a recently acquired private equity portfolio company. Identified $11+MM in inventory reduction, $1.2–1.9+MM in overhead expense reduction, and $0.4–1.2MM in freight cost reduction opportunities.
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Identifying Consolidation Opportunities and Creating Roadmap for Professionalizing Operations to Support Future Growth at Regional Family-owned Coffee Roaster and Distributor
Conducted a 3-week operational due diligence to establish a robust fact base of cost and operational performance in a data-poor situation, identify consolidation opportunities, and provide a fact-based, actionable plan for post-acquisition value creation, including: delivery and service route optimization to eliminate 30-40% of current routes; brewing equipment CapEx reduction through better deployment of used equipment; warehouse consolidation; sourcing efficiencies; SKU complexity management and inventory reduction; and professionalization of roasting and supply chain operations. Gotham’s findings enabled the client to close the transaction with confidence; the company started capturing identified opportunities within a few weeks of the deal closure.
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Refocusing North American Supply Chain for a New Competitive Environment at Global Soup Manufacturer
Created a North American Supply Chain strategy for a multinational soup company which had lost its scale advantages. Built upon a solid understanding of the company's operating strengths, the strategy leveraged collaborative alliances up and down the supply chain to extend the company's control of cans from fabrication to retail, and reduce costs in the entire system by 10-15%.
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Developing Supply Chain Roadmap to Professionalize Operations and Support Aggressive Growth Plan at Entrepreneurial Specialty Apparel Supplier
Conducted operational due diligence to establish the target’s current operational performance and set the stage for improvements immediately after deal closure. We: identified up to $1.3MM in warehouse cost reduction opportunities and established that existing capacity could support 3.7x current volume by dissecting warehouse processes, material flow, and layout; identified 39% inventory reduction opportunity and detailed end-vision for key supply chain processes; and validated the robustness of front-end sales, marketing, and design capabilities. Within a month of deal closure, management had reorganized the warehouse and started implementing other elements of our value creation plan.
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In A Data-poor Situation, Confirming Operational Readiness to Support Targeted National Growth at Family-owned Specialty Foods Company
Conducted detailed observations of manufacturing operations (evaluating equipment, labor, downtime, changeovers, etc.) and developed bottom-up capacity model to quantify production increases and cost savings. Determined that target’s facility had sufficient capacity to meet 5-year targeted growth projections; identified cost per case savings 15-20% from labor and overhead reductions; found low risk of future operational surprises (e.g., major equipment cap ex requirements, food safety/quality issues, etc.); and provided PE Client with ingoing operational value capture plan. Client moved forward with acquisition and immediately began implementation of Gotham recommended improvement initiatives.
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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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