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Capability

Plant Consolidation/ Re-balancing

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Industrial Goods Manufacturer
Establishing a Global Sourcing Strategy to Harvest Plant Consolidation Savings at Global Industrial Products Company

Developed a worldwide sourcing strategy for an industrial goods rollup company. Plans included the closure of 3 plants, consolidation of NA automation to single facility, migration of low-value assembly to Mexico and movement of electronic assembly to Southeast Asia. Total run-rate savings from the project are estimated at $20MM on a total cost basis of approx. $200MM.

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Customized Consumer Goods Manufacturer
Validating Management's Operations Plan and Identifying Additional Savings at Customized Consumer Products Company

Identified $35-45MM in cost reduction opportunities, 2-3x management’s savings plan, giving our client an edge to win the auction. Despite very limited access to the target’s management, plants, and data due to the nature of the auction, Gotham was able to leverage dataroom information, a plant visit, and our relevant experience to build a solid fact base of the target’s cost structure – including a detailed 4-year line-item-level view of the operational cost structure and an analysis of 2,000-employee workforce linking each individual to the specific cost line in the cost structure – and to both validate and expand savings opportunities via a comprehensive outsourcing/consolidation model and an analysis of sales, marketing, customer service, and G&A costs.    

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Consumer Goods Packaging Manufacturer
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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Automotive Components Manufacturer
Finding and Valuing Cost Reduction Opportunities at Global Tier 2 Automotive Components Supplier

Conducted opportunity assessment at Tier 2 Automotive Parts supplier with manufacturing locations in 4 countries. Identified $6-9MM in short-term and $27-37MM in longer-term cost reduction opportunities. Near-term opportunities included improving efficiency of US operations and re-sourcing materials and components from lower cost locations. Longer-term opportunities involved closing a European facility, migrating labor-intensive products from the US to Mexico facility, and building up a Chinese JV to supply all Asia product needs. Identified opportunities far exceeded management plan.

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Jewelry Manufacturer And Printer
Identifying and Quantifying Potential Network and Standalone Improvements at Specialty Jewelry Manufacturer and Printer

Conducted diagnostic to identify areas of opportunity and potential value of operational initiatives. Identified $6-8MM opportunities in jewelry manufacturing and $4-6MM in book printing via application of lean manufacturing, automation, improved customer service, and network optimization. Established a 100-day plan to jump start the opportunity capture. Post-acquisition, using 100-day plan, management able to migrate manufacturing to lower cost countries, outsource product finishing, and close an underperforming facility, leading to the capture of the outlined savings within 12 months.

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Industrial Products Manufacturer
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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Industry Expertise

 
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Consumer
 
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Food & Beverage
 
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Healthcare
 
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Industrials
 
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Energy
 
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Services

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