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Business Engineering Readiness RoadmapSM

Analytics uncover potential cost reductions for your business.

Our Readiness RoadmapSM is an assessment program that reviews and recommends improvements to the cost side of your business. It was developed to identify and prioritize opportunities for business leaders to drive down the cost of operations. The outcome is a comprehensive list of options, ranging from no cost/low cost options to extensive capital and people investments. The choice is yours as to when and how you execute on any or all of our recommendations.

When Do You Need the Readiness RoadmapSM?

  1. You know there are ways to improve processes and save money, but every executive in the company has a different idea. How can all the ideas be sorted out and organized into a plan?
  2. You are preparing the business for sale. You need to generate sustainable savings to improve profits.
  3. A buyer is evaluating the cost reduction opportunities in a prospective acquisition. What is the value of the reduction opportunities? How do they affect price?
  4. A major customer is lost and top line revenue has fallen significantly. How can you reduce costs in a sustainable, organized fashion to maintain profits?

This is how the engagement is structured:

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Using consultants with expertise in your industry, we extract and analyze data from your own operations to develop immediate, positive impact on costs and processes. And we do so with no pre-conceived ideas about best technology or best process- we are agnostic in that regard. Also, the analytics prove it is not always necessary to deplete human resources that will be necessary long-term to ensure a company’s savings, cash flow and profitability.

The goal is to find the low hanging fruit or the biggest wins. No one can do it all, so we help you make informed decisions that are easy to execute.

Are you ready to cut costs?
Ask us about the Readiness RoadmapSM today.

Article:

Unrecognized Opportunities

Roadmap analytics help manufacturers uncover potential cost reductions without jeopardizing the structure of the business.

Product Lifecycle

McDavid USA used the Roadmap to transform the product lifecycle and reduce the spend on low volume items.

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McDavid USA is a manufacturer of sports medicine equipment that sought a technology-based, independent analysis of its inventory and distribution practices. Results showed that the company was spending too much time and money on low volume items. “The Roadmap tool helped us look at our product lifecycle and take the high-cost, low-volumne (items) out of the product line,” said Mark Hass, controller. “Now we’re working to be best in class in distribution, manage our inventory better, and make sure we’ve got on hand just what we need for our customers.”

Inventory Strategy

Moss, Incorporated needed an effective inventory strategy for a wide variety of materials sourced through Asia. A domestic alternative was identified.

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“We were compensating by expediting through air, but sometimes our freight cost more than our inventory,” said Vincent Marler, executive vice president. “We needed to find a way to balance filling customer orders with a lead time of a week or less against a six- to eight-week supplier lead time.” Marler said Moss still had to maintain an acceptable inventory working capital level in this environment. Roadmap analytics showed that Moss could justify the higher price of a domestic supplier under certain circumstances when compared to the cost of expedited freight or maintaining a higher safety stock inventory level. “I knew beforehand that we needed a domestic alternative for certain situations but was impress at how accurately those ‘certain situations’ could be modeled and alternative processes put in place,” Marler said. The result: Moss anticipates significant savings on inbound air freight and hopes to reduce its inventory carrying costs while maintaining acceptable customer service levels.

Margin Issues

An $80 million manufacturer resolved margin issues by assessing its manufacturing process prior to instituting workforce reductions. Over $3 million in savings were identified.

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The Roadmap analytics determined substantive savings could be accomplished through shift pattern changes, equipment utilization, adjusting run quantities and rationalizing operations in three facilities. The manufacturer could potentially realize one-time savings of $2 million and annual savings of approximately $1 million – all identified through the technological analysis process.