Foodservice/ Ingredients
Customer & Market And Operational Due Diligence Of Leading Processor Of Freeze-Dried Fruits: Rapid Assessment Of Technology, Competitive, Customer Concentration, And Operational Risks
Provided clarity on risks (technology, competitive, customer concentration, and operational), and growth opportunities ahead of bid. Through interviews with 30+ competitors (domestic and import), distributors, equipment suppliers, academic experts, and customers, and extensive secondary research, Gotham established: the applications and advantages/disadvantages of freeze-drying technology; the target’s positioning vs. domestic and international freeze-drying processors in South America, China and Europe; and the stability/growth of its top customers. Gotham’s analysis revealed while the market was growing and the target was well-positioned and poised for growth, it could potentially face increased competitive intensity and margin pressure. Our client accounted for all these risks and tempered growth projections in its model.
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Operational Due Diligence of Leading Cookie Franchiser: Assessing Operations-related Acquisition Risks
Conducted 1-week operational due diligence of ingredient manufacturing operations for a quick-service franchise company, targeting labor practices, safety and environmental compliance, and inventory practices. Reviewed of labor policies, including work rules, attendance policies, and basic compliance with overtime, lunch, and break rules. Determined that the facility had solid risk management operations, and recommended minor improvements in quality assurance and material handling. The PE firm purchased the company and followed through on recommendations from operational due diligence.
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Operations Improvement At Ethnic Foodservice Products Manufacturer: Rapidly Capturing Manufacturing And Logistics Cost Reduction Opportunities
Captured $1.2MM in operations run-rate savings in 12 weeks at an ethnic foodservice and retail private label products manufacturer by implementing shop floor management best practices. Gotham worked on the shop floor to: observe operations; identify potential improvement opportunities; provide immediate guidance to client personnel; and troubleshoot and pilot solutions. We improved line through from ~225 cases/shift to ~375 cases/shift, reduced fill weight by 3-7% to minimize overfill, reduce floor scrap by 50%; and eliminated expired rework scrap. To ensure sustainability and further improvements, we: trained client personnel, put in place process changes, tools, KPIs and reporting system; and identified/planned next set of improvement opportunities. Gotham also launched logistics savings capture by developing direct ship pilot and facilitating conversation between company sales teams and foodservice distributors.
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Operations Improvements at Premium Baked Goods Manufacturer Capturing Manufacturing and Logistics Cost Savings Opportunities While Maintaining High Customer Service Levels
Lowered nationwide logistics/transportation costs via reductions in emergency shipments and outsourcing/consolidating of the carrier fleet and warehouses to a single, third-party logistics provider (3PL). Set lowest-cost freight allocation system targets, defined proposal criteria, and created RFQ. Actual savings exceeded projections by 15% in the first year ($6.9MM EBITDA impact), with maintenance of 99+% fill rate.
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