Food Safety, ESG, and Quality of Operations™ Due Diligence Finds Opportunities to Diversify Supply Chain and Formalize Processes

A seasonings manufacturer with sites in the U.S. and Mexico.

The Challenge

A private equity client was considering acquiring a food manufacturer of seasonings that use fresh ingredients. The target operates facilities in the U.S. and Mexico. The facilities have undergone recent changes in management and are experiencing market growth as well as implementing operational improvements. TriVista was retained to conduct a due diligence focused on Food Safety, ESG, Sourcing and Procurement, and Sales, Inventory, and Operations Planning (SIOP).

Our Approach

TriVista assembled a team of experts and visited manufacturing operations in U.S. and Mexico and conducted the following:

• Enterprise-wide operational due diligence assessment
• Review of footprint, processes, and capacity to ensure scalability to support anticipated growth
• Conducted analysis of supply chain, including planning, purchasing, and inventory
• Focused review of food safety and quality systems to assess capability, functionality, reliability, and risk
• Identified opportunities for operational efficiencies that may lead to margin and working capital improvements
• Conducted assessment around environmental, social, and governance practices and policies currently in place

The Results

Our final report included the following:

• Recommendations around supply chain diversification for ingredients and a review of inventory and purchasing lot sizing to improve inventory turns
• 5-year roadmap to formalize all ESG processes and ensured measurement tools for tracking were in place
• 6-month post-close food safety action plan breaking down priority and additional items for both sites along with defined testing schedules for contaminants
• Site-specific recommendations for warehousing efficiencies