The President of Borchers, a specialty materials and chemicals company, talks candidly about his organization's need to identify and capitalize on opportunities to improve profitability. He explains that:
- The challenges facing the organization included skepticism about working with a contractor, which was quickly overcome by SGS Maine Pointe’s hands-on, shoulder-to-shoulder approach
- The solutions implemented were based in SGS Maine Pointe’s Total Value Optimization (TVO)™ strategy and encompassed both operations and procurement
The results:
- Improved EBITDA by 26%
- Delivered a cash neutral project with a 17-week engagement
- Reduced manufacturing cost by 10%
- Cut raw material cost by 5%
- Reduced complement at the plant site by 15%
- Reduced working capital by $100,000 on a sustainable basis
- Enhanced the skills and capability of the procurement and operations functions to ensure sustainability
- Strengthened vendor relationships and implemented a collaborative supplier model
Achieved a 4:1 ROI