Increasing profits for a global cable and wire manufacturer
A subsidiary of a global cable manufacturer was struggling to take advantage of robust industry demand. Customer orders had recovered from pandemic-era 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. An implementation and execution phase followed to help enable 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 alongside plant management, WP&C were able to capture multiple quick-wins including:
Results were immediate and fully embraced by the client leadership:
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. An implementation and execution phase followed to help enable 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 alongside plant management, WP&C were able to capture multiple quick-wins including:
Results were immediate and fully embraced by the client leadership: