Technology Rapid Assessment Identified Opportunity to Reduce Cost and Create a Platform for Optimized Acquisition Integration

The Challenge

TriVista was engaged by a private equity firm to conduct a Quality of Operations™ (QOO™) due diligence and technology rapid assessment on a leading automotive performance aftermarket company with revenues of $325M. The target company operates with 5 primary distribution centers throughout North America and 1 small manufacturing facility servicing customers in vehicle markets that include Subaru, sport compact cars, pickup trucks, and off-road jeeps.

Our Approach

TriVista used a series of management discussion calls, 3 site visits at crucially identified facilities, and data analysis to address the following:

• Assessment of warehouse operations to evaluate maturity of operating and quality systems, continuous improvement processes, and leadership capabilities
• Review of SIOP process with a focus on forecasting, demand planning, SKU rationalization, and inventory optimization
• Analysis of supply chain, including ability to source and manage LCC suppliers and a high-level review of the warehouse network

The Results

No operational red flags were identified during the rapid QOO™ assessment with warehouse process flow inefficiencies primarily driven by warehouses operating on dual WMS platforms instead a universal solution. TriVista issued a QOO™ and technology due diligence report with the following post-close recommendations:

• Reviewing strategy deployment process to prioritize cost saving project initiatives and ensure project execution
• Hiring a permanent CIO to align IT strategy with acquisition strategy
• Resolving ERP and WMS duplication will enable significant efficiencies improvements including warehouse flow, advanced warehouse processes, labor efficiency, and capacity increases
• Augmenting SIOP process and replacement of supply chain planning software will drive improved inventory turns and higher service levels
• Upgrading sourcing practices and portfolio management team will drive cost reduction and improved service levels
• Reviewing freight opportunities with a complementing pricing strategy