Asian Supplier Development Increases EBITDA by $3.0 MM
Electronics Manufacturer
3x Sales Potential
A newly-acquired electronics manufacturer expected to triple its size within two years. To meet its growth targets, the company needed a comprehensive, disciplined approach to its sourcing, quality, and manufacturing practices. The owners wanted a group of seasoned professionals who could weave a cohesive improvement strategy during this critical period of change.
Smooth Transition
S&OP Process
Continuous Improvement
The ProAction Group installed a new management system during the first 100 days of new ownership. We successfully managed the transition from an entrepreneurial, leader-run company to a traditional corporate environment. The ProAction team led a Sales & Operations Planning process to manage the substantial changes in forecasting, operations, and sourcing. The S&OP process allowed the company to prioritize and prepare for the substantial growth ahead, and aggressively pursue cost reduction opportunities.
As interim managers, we implemented several process changes:
Supply Chain Procedures: to improve materials planning; inventories
Supplier Management System: to audit suppliers and improve quality
Quality Assurance Program: to address specifications and returns
Product Development Process: to streamline value improvements
Supply Chain Procedures: to improve materials planning; inventories
Supplier Management System: to audit suppliers and improve quality
Customer returns were on the rise. ProAction implemented a continuous improvement program to bring operational stability and correct quality problems. We created teams to implement improvements in an expedited manner. These teams became change agents within the company and will continue the challenge of continuous improvement.
$1.3 MM increase in EBITDA
Improved Quality and Order Fulfillment
ProAction's leadership drove a $1.3 MM annual increase in EBITDA. Improved product quality reduced the number of customer complaints and the return rate dropped by 37.5% in less than six months. Order fulfillment has improved, with same-day shipment on orders received before 5pm. The company is now well-positioned for the growth that lies ahead.
