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Background

This organization was experiencing a lack of strategic focus as it underwent a centralized service transformation with their customer service, warehousing and fulfillment, manufacturing, procurement, and IT/back office support. TPG was brought in to develop a new operational strategy, while organizing and structuring the convergence through project management, process design, and business case establishment from current state to future state capabilities.

Approach

  • Developed a strategic operations plan and restructured the entire business operating model
  • Conducted current state assessment and process mapping of operations, logistics, procurement, finance, and order management for baseline opportunity
  • Determined cost-optimal manufacturing facility set-up and centralized supply chain location options
  • Served in interim management capacities to expedite benefits realization and due diligence studies for potential acquisitions

Results

TPG identified over $8.8 million in centralized service cost reduction opportunities against $144M in revenue, and realized $7.9MM of cost reduction opportunities. With renewed strategic direction, this organization went from a small online retailer to an international umbrella corporation with the acquisition of 5 companies during the span of the project.

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