This story is for CEOs who
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Must deal with market demand shifts, high interest rates, and other financial setbacks
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Must up-level the workforce and re-engage a fatigued leadership team
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Need to create value fast despite marketplace and company turmoil
The Challenges
After acquiring a specialty chemical company with potential, a private equity (PE) firm realized that the company had performance issues, severely reduced productivity, and steady erosion of EBITDA. The company was losing the fight against leadership fatigue from revolving owners, market headwinds, and below-standard procurement, operations, and logistics functions. The company needed to pivot from survival mode to value creation despite being without a full leadership team.
The PE firm turned to their preferred partner, SGS Maine Pointe, to bring EBITDA and process improvements and to fill the leadership gaps—a safe pair of hands to rescue a floundering company.
Driving value creation, stability, and best practices in procurement, operations, logistics, and leadership
SGS Maine Pointe:
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Used Total Value Optimization (TVO)™ Entitlement to identify value creation initiatives that would bring incremental value
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Developed a dashboard to track operations KPIs and metrics, allowing fast remediation of problems
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Designed a report that tracked exactly how and when VCIs translated into increased EBITDA and profits
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Employed the TVO process to mature procurement, operations, and logistics and drive leadership and organizational improvement
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Strengthened the supply chain, lowered logistics costs, and modernized operations
Lessons learned for other executives
• In a very competitive marketplace, embracing TVO entitlement and diligence helps to underwrite the business case
• Despite organizational gaps and market shifts, TVO can help you recoup margin at very crucial times
The Results
- $18.6M procurement savings
- 11% overall improvement in productivity (OEE)
- $4M logistics savings
- Ensured company’s survival despite a volume drop of over 30%
- Offset margin leakage and revenue loss with value creation initiatives
- Employed Total Value Optimization (TVO)™ to mature and de-risk the supply chain
Propelling value creation initiatives against market headwinds
