Situation
- Altruas was engaged with this client on the recommendation of a third-party partner based on our expertise to support designing a program to support operating working capital improvements and improving visibility for invested capital towards larger initiatives
- In comparison with major competitors, the company’s C-suite believed that there was an opportunity to improve margins and cash positions across multiple global locations
- Historically, there was a large pool of unvetted opportunities which did not include a robust governance process to define, quantify and rank the opportunities / initiatives thought to be viable pursuits to assist in prioritization and execution
- Client believed there was an imbalance across key metrics being view by their executive team (only highlighting positive performance areas)
- Deployed team performed an analysis of current and historical financials to understand and define opportunity potential
- Team researched benchmarks across direct and indirect competition to understand performance parameters for baselines
- Designed model to track ROI for applicable divisions and sites, re-engineered SIOP and portfolio management processes to support visibility and governance over execution
- Adjusted organization roles and responsibilities with minor structural moves – Identified client team leads and influencers, providing education / training
- Created plans for this effort to be repeated in multiple global locations
Approach
Benefits
- Resulted in freeing up cash held up in inventory and removed low return initiatives, providing the company with increased flexibility to pay down debt and invest in a strategic acquisitions
- Improved margin (multiple locations and corporate-level)
- Designed process for managing and tracking capital invested in new initiatives
- Re-engineered SIOP and portfolio management process to support more effective communication and productive operational outcomes
