Spend analysis, current state assessment and strategy design

A private equity deal team was considering buying a leading manufacturer of playground equipment and needed an assessment of cost reduction and performance improvement opportunities of the target. Alaris supported the efforts to define some of the key challenges and opportunities to improve the sourcing, manufacturing, and logistics functions. The trick was to reduce cost without sacrificing customer service. Potential alternatives to the current operating model included plant consolidation, establishment of manufacturing centers of excellence across plants and outsourcing some operations to lower cost suppliers. Alaris worked with the new management team and private equity owners leading a comprehensive review of supply and demand. We

• Developed a current state supply chain model, by suppliers and segment

• Developed different scenarios to test changes in the plant location of specific manufacturing operations and the potential outsourcing of operations

• Performed optimization analysis to determine which supply chain scenario delivered the lowest cost with minimal customer service impact

• Defined the impact of additional inventory cost if selected operations were outsourced

• Conducted sensitivity analysis on the ability of future supply chain models to support growth in customer demand

• Build out global sourcing and sales organization post acquisition