Consumer Distribution & Retail
Customer & Market Due Diligence Of Foodservice Distributor/DTC Fulfillment Services Provider: Deciphering Nascent DTC Frozen Foods Fulfillment Market
Conducted 3-week customer & market due diligence to establish: frozen DTC fulfillment market size and the ability to sustain COVID-19 bump; the target’s competitive positioning in the frozen DTC fulfillment market; and the target’s reputation/positioning with foodservice distribution customers. Gotham: mapped universe of 350+ frozen DTC food companies; built bottom-up frozen DTC fulfillment market model; conducted 11 DTC fulfillment customer interviews; established competitive landscape of frozen DTC fulfillment services providers; and conducted 13 interviews and 73 online customer surveys of foodservice distribution customers. Gotham’s findings enabled our client to move forward confidently with the potential acquisition.
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Delivery Strategy at Leading Luxury Chocolate Company: Capturing Lost Sales Opportunities Through New Planning and Delivering Capabilities
Developed a new customer service/logistics strategy for effectively distributing high-value, perishable products to 250 company-owned stores and 5,000 DSD customers. Developed and executed 3 pilot tests that demonstrated significant improvements: 100% improvement in retail delivery performance; successful direct fulfillment of retail corporate orders; 10% reduction in inventory costs; very satisfied wholesale customers.
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Customer & Market Due Diligence of Leading Mobility Products Distributor: Assessing Consumer Willingness to Buy and Lender Willingness to Finance a Lower-priced Product
Assessed consumer willingness to buy a lower-priced product and lender willingness to finance the product. Through a consumer panel survey of high-wheelchair-usage consumers (either users or caregivers), and a survey of target’s customer and prospect database, Gotham established that WAV is a need-based product that offers significant quality of life improvement -- a new lower-priced product would open up another ~20% of market. Through our ability to get to the right auto lending decision makers, we were quickly able to establish what the target should expect in terms of financing and which lenders to target. Our client was excited about the opportunity, presented our findings to the target’s management, and pursued a more aggressive bid.
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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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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.
Operational Due Diligence of Medical Products Ecommerce Retailer: Deciphering and Controlling Outsourced Distribution Cost Structures
Modeled the warehouse, outbound freight, inventory, and inbound freight cost structures of a 3rd-party logistics company in the midst of contract renegotiations and a move to a new warehouse. Identified $1.3MM in financial exposure and weaknesses in contracted outbound freight pricing which drove operational instability, resulting in a 22% reduction in the acquisition price.
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