Private Equity Case Study 1
A North American based private equity group with assets of over $25B recently acquired the U.S. operations of a European industrial tool company as a bolt-on acquisition.
1) Optimize their manufacturing and global sourcing footprint for factories, warehouse, and sourcing offices in Mexico, Columbia, Brazil, and Spain while growing their U.S. operations.
2) Define a new global sourcing strategy in raw material, general costs, and finished products through complex negotiations and supplier consolidation efforts.
3) Recruit a new multilingual vice president of supply chain and operations based out of Los Angeles.
1) Recruited a new vice president of supply chain and operations based out of Los Angeles.
2) Utilized VA/VE analysis to identify cost improvement opportunities.
3) Reorganized the supply chain team that focused on redesigning the supply chain base while changing the manufacturing footprint with resourcing components to Mexico and Southern U.S.
4) Implemented new outsourcing partners for finished goods and other licensing agreements that ultimately grew sales.
In 2017, increased material productivity by 3.2% and 4.5% in 2018 and identified an additional $50M+ in VA/VE savings per year.