Performance Improvement 2

Situation:

After a year of planning, a $150 million division of an $800 million industrial manufacturer decided to close and relocate their Midwest manufacturing facility to their Southeast location. A significant capital outlay would have been required to expand the Southeast facility to accommodate the consolidation of the two plants. 

• After a four day enterprise assessment, we determined the best course was not to relocate to the Southeast, but rather to consolidate the two locations into the Midwest facility

• AlphaPoint Advisors revised and presented plan to the CEO, gained buy-in and ultimately approval from the board of directors

• Utilized the consolidation as an opportunity to focus the business around its customers and recreate the operations from a push factory to a pull environment

• Created $1.2 million in cash flow through the reduction of inventory from $1.5 million to $280,000