Military Defense Contractor Realizes $4M in Direct Savings from Business Infrastructure Implementation

This company is recognized as the leader in contracted airborne flight and electronic systems training.  

$4.4M
annual direct savings realized
60%
increase in inventory accuracy

Challenge

Due to impressive growth and in anticipation of several significant opportunities in the near term, the company realized that its business infrastructure would soon be a constraint. With single points of failure in IT, outdated software for billing, expense management and maintenance management, and no formal travel policy, this client was supporting considerable unnecessary costs which affected their bottom line and left team members disconnected and confused.

Discovery

The team engaged over 80% of the organization over the course of an eight-week diagnostic, identifying over 1000 pain points across all departments and multiple sites. Through the evaluation process, TPG identified several programs that would allow the business to scale as required:

  • IT Infrastructure & Strategy to migrate the legacy platform to new supported system with upgrades contributing $167K in direct savings
  • Logistics & Technical Services program implemented to support maintenance scheduling and inventory recognition, reducing flight hours lost and capturing $187K in cost avoidance
  • Travel and Expense Program designed to build structure and controls around travel expenses reducing annual spend by $1.0M
  • Communications and Change Management strategy required to ensure buy-in and retain human resources amid a changing business environment
  • Process Infrastructure developed to standardize and document operating procedures across the business

To capitalize on these opportunities, TPG worked with the client to implement these programs and others over a two-year engagement to build the required infrastructure the client needed to sustain existing operations and grow at scale.

Value Created

As result of this cross-functional implementation, this client attained immediate financial benefit and built a more scalable business:

  • Realized $4.4M in annual direct savings, a sustainable cost reduction of 45% of their shared service infrastructure
  • Recognized $3.2M in indirect savings, addressing 79% of pain points identified during the diagnostic
  • Improved inventory accuracy by 60% through data cleansing, ERP migration, and KPI reporting

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