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- Paul Fioravanti MBA, MPA, CTP – CEO & Managing Partner
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Plastic Food Service Disposables Manufacturer
Client Overview: Leading North American manufacturer of high quality, rigid plastic food service disposables serving the supermarket/deli, hotel/motel, and foodservice distribution markets focused on the $3.8 billion rigid plastics sector of the food service disposables’ market.
Opportunities/Challenges:
- Highly dysfunctional operation created by the major relocation and merger of two operations
- Ineffective key processes (i.e., scheduling, inventory management and operational reporting)
- Extremely poor inventory accuracy and control
- FY 04/05 EBITDA ($20M) on $30M Revenue
- Prepare to stand-alone
Solutions:
- Make immediate personnel changes that address key deficiencies and excesses
- Instill sense of urgency and accountability; create a culture of execution and results
- Identify and implement numerous operational enhancements to improve inventory accuracy, warehouse management, production planning and labor absorption
- Ensure operational data accuracy for reporting and management
Results:
- Formed a top-graded, enthusiastic leadership team
- Improved inventory accuracy to +/- 90% levels
- Realized initial cost savings of approx. $2M/yr; with additional $1M in annual savings starting in 2Q06
- Established more flexibility for stakeholders regarding strategic options
- FY 05/06 – Breakeven at EBITDA level; exit at over $200K monthly EBITDA
- $3.5M EBITDA on $45M Revenue in FY 06/07
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