Private Equity
Relocation & Consolidation
Footprint Evaluation Drives Successful Relocation Planning
How a structured footprint evaluation informed a clear relocation strategy, reduced risk, and aligned operational and financial objectives.
INDUSTRY: Private Equity Manufacturing
SERVICES: Relocation Management. Footprint Optimization. Continuous Improvement Deployment.
Situation.
Seraph was brought in a Private Equity-backed manufacturer for a footprint evaluation and development of a Relocation Management Plan. The client wanted to achieve a $1M+ annual CAPEX reduction. The focus was optimizing a plant and distribution center within 100 miles of each other.
Actions.
- Tribal knowledge captured
- Product and component review
- Product families reviewed, identified and categorized SKUs.
- Rolled out Epicor ERP system at the plant
- Plant-wide continuous improvement initiatives
Results.
- Improvements were cash-flow positive, net of fees, for the final month of engagement.
- Rationalization of SKUs and optimized MOQ.
- 7 continuous improvement workstreams completed; SMED, reduced set-up time, improved inventory accuracy, reduced carrying costs, improved supplier performance, increased schedule attainment and reduced labor requirements.
- $224K monthly savings
- 9-month payback
