Identifying areas of value creation for company when PE owners exit (CS289)
This story is for CEOs who
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Are looking to attract PE buyers interested in potential value
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Want to reduce procurement, operations, and logistics costs
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Need to improve their market position
The Challenges
Seeking to realize their investment, PE owners prepared an exit from a specialty packaging company that designs and manufactures plastic barrier packaging. Prior to the exit, the company wanted to identify areas for value creation in strategic sourcing of direct materials and logistics. Additionally, the company sought validation of additional opportunities outside the scope of pre-sale implementation during a compressed engagement timeline.
Validating data, analyzing spend, and creating cross- functional teams for sustained savings
SGS Maine Pointe:
- Analyzed direct spend
- Showed potential for buyers to gain millions of dollars in value
- Strengthened the supply chain and lowered costs with supplier and transportation optionality
Lessons learned for other executives
• Most companies have untapped opportunities for value creation
• Optionality—in procurement and logistics—strengthens the supply chain
The Results
- Identified €1.2M annualized procurement benefit across key quick win categories in 7 countries
- €85K annualized logistics savings identified
- Provided expert insights into TMS implementation
- Provided clear visibility of spend across all categories across all sites
- Trained procurement team on go-to-market approach and use of RFQ analysis tool
- Developed alternative suppliers for all categories improving OTIF and quality metrics
- Validated additional €29M in EBITDA impact through operational improvements over 3 years
Identifying areas of value creation for company when PE owners exit