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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Business Strategy Assessment of a Home Décor Importer & Wholesaler: Clarifying Channel Strategy, Inventory Rightsizing, and eCommerce Upside
Conducted business strategy assessment to chart the exit path for a PE-owned full-service home-décor importer and wholesaler. To this end, Gotham: analyzed channel profitability and modeled the impact of eliminating brick-and-mortar channels; developed a plan to optimize inventory levels and rightsize the fixed cost structure; interviewed customers to establish the company’s reputation/positioning; and visited competitor showrooms to profile key competitors. With a clear picture of internal opportunities and market and competitive dynamics, Gotham developed a plan to more than double EBITDA through structural cost reductions and accelerated eCommerce growth. The company launched an effort to capture these opportunities to position itself for a successful exit.
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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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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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