Consumer Products rebuilds its Supply Chain / Logistics Operations

Saves $2.0 million per year

KGI Case Study

Situation

A mid-market Consumer Branded Product Company lacked the experience and leadership to address:

• Dramatic cost increases for transportation and warehousing
• Unstable operations after transition to a new 3PL
• Poor customer service levels
• Rapidly rising inventory
• Lack of visibility and management reporting

The situation was urgent. Ownership and management realized that they needed specialized, professional assistance. After seeking recommendations from their lawyers, business leaders, and other business connections, they contacted KGI and quickly secured our services.

Approach

KGI quickly assessed the business situation and analyzed the available data. In short order, the team of management and KGI developed a portfolio of solutions and prioritized the near term to urgently reduce costs, negotiate and stabilize the 3PL relationship, and improve customer order fulfillment. And, to ensure sustainable control and visibility, the team concurrently developed and implemented a performance dashboard with key end to end supply chain and logistics KPI's.

Results

The immediate actions and implemented solutions resulted in an annualized cost savings of over $2.0 million. The key realized savings included: inbound and outbound transportation, warehousing, and minimized customer chargebacks. Mid-term strategies and solutions, identified an additional potential $1M in savings. The portfolio was sequenced to optimized investment, time, and value. The rapid analysis and solution implementation accelerated the needed immediate cost savings, gained control of the operations, and established a clear path to achieve future savings.

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For over 30 years, KGI's mission is to stabilize a company's operations and finance and to increase its enterprise value. Whether you are a lender, equity or management, you are welcome to call us for a confidential discussion.