Internet & E-commerce
Operational Due Diligence of Leading Direct Marketing Company: Positioning the Buyer for a Fact-based Bid and Subsequent Rapid Savings Capture
Identified $14-29MM in relatively easily achievable savings (sourcing, freight, and catalog opportunities, along with a $26-37MM potential from inventory reduction), which collectively far exceeded management projections. Due diligence scope included China sourcing costs, outbound freight, catalog printing/mailing costs, call center operations, warehousing and inventory. Client, a mega-PE firm, won this hotly-contested auction. After deal closure, helped management team capture identified opportunities.
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Operations Improvements at Large Direct Marketing Company: Capturing Sourcing and Inventory Opportunities
Assisted management team in capturing $10+MM in sourcing cost reduction and $20+MM in inventory optimization opportunities identified during operational due diligence. The effort included developing new sourcing function and processes, crafting a strategic sourcing approach including a business case for Asia Sourcing Office, re-sourcing 15,000+ China-sourced items ($100+MM spend), and creating robust inventory management approach/processes.
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Sourcing Optimization at Large Direct Marketing Company: Consolidating the Vendor Base to Reduce Complexity
Helped management consolidate China base of 1,700+ factories and capture cost savings ($8.7MM, 12% in sourcing savings). 5 phase effort included creating the bid package, supporting the bidding process, building a quote evaluation tool, and awarding the business. Returned 6 months later to help management diagnose/respond to price increases driven by macro factors (e.g., Chinese currency appreciation, elimination of Chinese export tax rebate, commodity price increases, and new quality/factory inspection requirements).
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Inventory Optimization at Large Direct Marketing Company: Developing and Implementing Enhanced Inventory Management
Developed strategies to optimize inventory to leverage new scale to deliver $20+MM (~25%) in inventory reduction. Analyzed historical demand/inventory to create segmented inventory strategies (e.g., buying closer to demand, everyday item replenishment, new item demand forecasting). Built a tool to assist with everyday inventory replenishment. Turns improved from 1.76 to 2.15 and peak inventory reduced by $10MM.
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Strategic Sourcing at Large Direct Marketing Company: Developing Dedicated Global Sourcing Function and Processes
Helped build strategic sourcing capabilities by migrating sourcing responsibilities from merchandising to a dedicated sourcing team and developing detailed sourcing processes, including quote management, vendor management, and quality management. To help efficiently manage sourcing, also crafted an Asia Sourcing Office business case that was approved by the board.
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