Increasing profits for a global manufacturer
A global manufacturer was struggling to take advantage of robust industry demand. Customer orders had recovered from pandemic lows but supply chain challenges led to ballooning lead times and a significant order backlog. They sought out Wilson Perumal & Company to help unlock manufacturing capacity and optimize pricing strategies to take advantage of industry tailwinds and to increase profits.
Demand had recovered in the wake of the pandemic, but profits had been slow to follow. Product portfolio complexity, supply chain disruptions, and manufacturing challenges were hampering their ability to convert robust demand into increased EBITDA. Customer lead times increased rapidly and created a 6-9-month order backlog. Given capacity constraints amid sustained demand, they were unsure where to focus their efforts to maximize EBITDA potential. Which products should they offer, how should they price them, and how can they bring lead times down to an acceptable level?
With recognized experience identifying and executing on profit improvement opportunities, WP&C started with an initial rapid assessment to identify value creation levers and develop an execution roadmap. Following the assessment, WP&C carried out the implementation and execution phase, which enabled the plant team to rapidly increase EBITDA. Over the course of the project, the WP&C team:
After the assessment phase, the WP&C team worked with the management team to develop and execute a roadmap for increasing plant throughput and overall profitability. Actions included:
Working with plant management and supervision in the implementation phase, the WP&C team was able to capture value quickly to culminate ongoing efforts:
Demand had recovered in the wake of the pandemic, but profits had been slow to follow. Product portfolio complexity, supply chain disruptions, and manufacturing challenges were hampering their ability to convert robust demand into increased EBITDA. Customer lead times increased rapidly and created a 6-9-month order backlog. Given capacity constraints amid sustained demand, they were unsure where to focus their efforts to maximize EBITDA potential. Which products should they offer, how should they price them, and how can they bring lead times down to an acceptable level?
With recognized experience identifying and executing on profit improvement opportunities, WP&C started with an initial rapid assessment to identify value creation levers and develop an execution roadmap. Following the assessment, WP&C carried out the implementation and execution phase, which enabled the plant team to rapidly increase EBITDA. Over the course of the project, the WP&C team:
After the assessment phase, the WP&C team worked with the management team to develop and execute a roadmap for increasing plant throughput and overall profitability. Actions included:
Working with plant management and supervision in the implementation phase, the WP&C team was able to capture value quickly to culminate ongoing efforts: