Due Diligence Finds $300M in Cost Reduction Opportunities
Identify cost reduction synergies and optimize product and asset portfolio.
- Perform due diligence and identify acquisition synergies for polyester and nylon fiber acquisition and assimilation.
- Benchmark operating performance of 44 sites globally.
- Benchmark the industry’s Best-in-Class and perform a gap analysis.
- Develop a 3–5 year Improvement Plan for each site.
- Implement a global Operations Excellence program with a framework of work processes and practices that would help reduce cost, improve uptime, yield, and improve profitability.
- Identify cost reduction synergies and then optimize product and asset portfolio.
- Determine which assets should be producing which products.
- Identify opportunities to rationalize and consolidate sites as well as improve.
Perform Operations Excellence Due Diligence & Assessment
- Perform Operations Excellence due diligence & Assessment – Worked with team to visit sites, analyze operating performance, and Identified cost reduction opportunities
- Developed a model that assisted in evaluating economics for consolidating and rationalizing low-performing assets.
- Identified opportunities to capture hidden plant potential at high-performing assets. The network was reconfigured to focus more heavily on higher-margin resin/polymer products vs low margin fiber products.
- Developed a Technology Investment plan
(5-year time horizon) that repositioned the company to be focused on high margin products/
- Developed a plan to roll out Operations Excellence Work Processes and Best Practices globally – the project was executed in series of waves
- Assisted Client in creating a Central OPEX organization to steward and sustain best practices.
Identified more than $300M/yr. in cost reduction opportunities globally. Worked to capture more than $300M/yr. through OPEX and Network Footprint Optimization
- Due Diligence identified more than $300M/yr. of synergies.
- Operations Excellence Framework and Best Practices were ultimately implemented in all sites outside the handful that were shut down due to network optimization.
- The client worked to develop an Operating Platform / System that was leveraged as new acquisitions were made – Assimilate to Client Operating System.
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