Global Supply Chain Assessment Generates $11M in EBITDA Savings

STRENGTHENING THE SUPPLIER BASE, STREAMLINING LOGISTICS NETWORK, AND EMPOWERING THE LEADERSHIP TEAM

The Challenge

A $400M in sales revenue, multi-division industrial products manufacturer was experiencing major issues in its Asia and China supply chain. Poor On-Time-Delivery and high logistics costs were forcing the company to absorb substantial price increases, while struggling with poor quality shipments. With numerous weak suppliers and a fragmented logistics network, the client lacked the expertise and in-house experience to transform its existing supply chain management strategy overseas.

Our Approach

TriVista immediately performed a full evaluation of the client’s Asia supply chain, identifying the weakest suppliers, non-value add time during logistics planning, and supply chain wide improvement opportunities to develop a road map for achieving short-term and long-term Key Performance Goals.

Over the course of the first year, our team identified and qualified additional suppliers to replace existing suppliers incapable of meeting above average industry performance. A strategy was developed to centralize order planning and shipment scheduling to leverage freight costs and minimize limited container loads. Our experts then successfully re-negotiated payment terms with key suppliers from a 30% deposit required at PO to 100% due 45 days after China departure. Within the first few months, the client began to experience costs savings and approved the implementation of additional cost-saving projects.

Given the complexity and poor history of managing internal resources remotely, the client asked our team to recruit two in-house TriVista resources to execute the organization’s supply chain management goals, saving the client additional capital investment and administrative expenses hiring a full time presence in China. TriVista’s client-dedicated team continues to engage.