Performance Improvement Delivered Measurable EBITDA Impact
At a glance
Crowe helped a global manufacturer improve performance, boost cash flow, and achieve more than $15 million in annualized EBITDA impact.
A global commercial vehicle parts manufacturer faced underperformance across facilities, excess inventory, and a relocation decision without a clear business case. Crowe helped address operational efficiency, inventory management, working capital and provided relocation analysis to support measurable financial and operational improvement.
Transformative initiatives in performance improvement
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The challenge
The company experienced operational underperformance across multiple production facilities, which led to subpar industry-standard product margins and net profit levels. Missed production schedules also caused unacceptable customer delivery performance.
Additionally, the company maintained excessive and misaligned product inventory at nearly all locations. Because the inventory issues occurred during a rapid rise in interest rates, the financial carrying costs strongly affected cash flow.
While dealing with performance issues, the company also wanted to relocate its high-volume production to an international location but lacked a sufficient business case to justify the capital expense.
How Crowe helped
The Crowe team helped this company improve plant-level operating performance and throughput by implementing operational excellence principles and lean manufacturing best practices, including line-balancing, cycle time and downtime reduction, pre-staging of material, Kanban techniques, and optimal production sequencing.
Our team implemented foundational standard work related to planning, inventory control, and production scheduling to reduce excess inventory levels. While implementing parameters based on enterprise resource planning to improve buyer behavior monitoring, our team also developed comprehensive dashboards to monitor ongoing inventory metrics.
Finally, our team analyzed the business case for relocation and highlighted numerous critical oversights and omissions. We identified and rectified incorrect operational and financial assumptions so the company could have a clear view of the benefits and drawbacks to relocation.
Our approach
Crowe performance improvement specialists developed a comprehensive solution that addressed all aspects of the company’s underperformance. Across multiple engagements, our team relied on its extensive experience in operational efficiency improvement, demand planning, inventory management, working capital reduction, footprint consolidation, relocation analysis, and freight and warehouse cost reduction.
With Crowe guidance, the client also achieved the following results:
Work with our performance improvement team
Improving business performance requires investing in and implementing the right strategies, technologies, and processes at the right time. Contact our team to see how we can help with your performance improvement needs.
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