Delivered footprint and inventory rationalization
Situation:
A leading manufacturer of industrial safety equipment turned to Kormac for assistance in evaluating its global footprint and improving operational efficiency.
Actions:
- Analyzed global manufacturing and distribution footprint, including plants, fulfillment centers, and subcontracted partners across NA, Europe, LATAM, Asia
- Developed plan to reduce global footprint by 24% while improving margins, resilience, and service
- Evaluated 18+ scenarios and finalized chosen plan for site consolidation, including detailed schedule, savings and investments calibration, functional responsibilities for all major tasks, and budgetary planning
- Expanded collaboration to SIOP and inventory reduction
Results: Delivered actionable plan to optimize company footprint from 17 locations to 13, delivering $12.7MM in net savings and 223% ROI. Inventory analysis also enabled $20MM (10%) reduction in inventory in the first year.
