Food Services Equipment Company

Industry

Manufacturing – Food Services

Size

$150 million

Expertise

Crisis / Interim Management

Assignment

Our client completed the acquisition of a complimentary product and services company two years earlier and had not realized the results originally projected in the acquisition pro-forma. The acquired company was losing money, market share and several members of the senior management team had left to work for the competition. MainStream was engaged to turn around the company’s performance, conduct a market analysis of their product offerings and to remedy operational issues that were behind the loss of key people in the organization.

Actions

MainStream assumed the responsibility of General Manager reporting directly to the CEO. Subject matter experts were brought in to participate on interdisciplinary teams to quickly identify both obstacles and solutions. Operational improvements in the general and administrative area as well as on the manufacturing floor were put in place to reduce overhead, eliminate waste in materials and time, lower inventory levels, shrink lead times and lower costs. Competitive product reviews and major customer visits were completed with recommendations to the parent company on product planning.

Results

The total number of products offered was reduced by 40%. These reductions simplified the manufacturing engineering and production processes, resulting in a cash gain of $625,000 from inventory reductions. The products which remained were enhanced with features found to be important to their customer base. The company was stable, able to produce a product desirable to the marketplace and returned to a level of profitability that met the parent company’s objectives.