Electrical/ Electronic Products
Customer & Market Due Diligence of Off-road Vehicle Aftermarket Parts Supplier: Assessing Company Positioning and Market Outlook
Conducted customer & market due diligence to establish the aftermarket parts market size/growth for key end-markets, identify potential threats from OEMs/distributors, and understand the eCommerce growth opportunity in an information-poor market: 1) conducted over 200 interviews with decision-makers at major OEMs, distributors, dealers, repair centers, and retailers; 2) established off-road vehicle aftermarket part market size/growth; 3) quantified channel-specific market trends by analyzing the target’s sales by distribution channel at the SKU level; and 4) established the competitive landscape at each step of the value chain by profiling major OEMs and distributors in the powersports, agriculture, and lawn and garden markets. Gotham’s intensive primary research and analytical effort provided a nuanced understanding of the market outlook and clarified threats/opportunities, thus allowing the client to make a well informed bid in a highly competitive auction.
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Exit Preparation/Positioning for Electronics Component Supplier: Establishing Niche Market Positioning and Multi-pronged Growth Strategy
Built a solid fact-base of company sales, market position, and competitive dynamics by analyzing 7 years of customer sales/customer data, conducting 170 interviews and 1,900 online surveys of customers/prospects, and building a bottom-up market sizing model. Established company’s position as a niche leader using an original use-based segmentation based on customers’ component needs across the product life cycle. Developed a multi-pronged growth strategy to achieve 14% CAGR growth (vs. 6% overall market growth) by leveraging company’s end-market presence and In Operations segment strength. Gotham also analyzed the impact of pricing on volume and established end-market mix, not pricing, was the driver of recent decreasing flagship catalog brand sales volume. Gotham’s work allowed management to position the company as a niche leader and to begin implementing a credible growth strategy to prepare for a successful eventual exit.
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Creating a Fact-based, Realistic Operations Strategy at Leading Industrial Machinery Manufacturer: Performance Enhancement at IndusTech
Conducted a 2-week diagnostic of current performance as a first step in helping craft and execute an operations strategy. Specific elements of the proposed strategy included: (1) outsourcing non-core activities; (2) rationalizing the vendor based and developing focused supplier partnerships; (3) segmenting operations (equipment vs. consumables) to improve supply chain management; and (4) Moving towards standard and modular system design to greatly simplify inventory and production. Short-term cost savings of $2MM successfully captures and $3+MM longer-term savings capture on track.
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Sourcing Optimiation at Specialty Industrial Equipment Manufacturer: Consolidating and Creating Value-added Relationships with Vendors
Identified opportunity for vendor consolidation for commodity items and created and helped purchasing team execute associated plan for electrical parts processing, resulting in $450K in direct purchasing savings and $1.5MM reduction in componentry inventory. Comparable efforts rolled out to other commodities.
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Post-Merger Integration of South American Industrial Goods Manufacturer: Harvesting Opportunity from Performance, Capability, and Cost Structure Enhancement
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 at Specialty Electrical Equipment Manufacturer: New Manufacturing Strategy at ThermaGoods
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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