GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

GLOBAL FOOTPRINT SERVICES:

PLANT CLOSURE

GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

BACKGROUND

As part of a global restructuring of business units, a multinational chemical company was closing one of their Chinese production facilities. EWA engaged as Project Leader with responsibility for closure implementation.

GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

APPROACH

Six months prior to plant closure

    • Closure strategy (budget, timing, expenditures, government relations, etc.)
    • Defined implementation team (Operations, HR, Legal, Security, IT, etc.)
    • Development of communication plans (staff, government, external, etc.)
    • Security risk assessment (employee unrest, physical & IP assets theft, etc.)

Three months prior to plant closure

    • Implementation of operational and protective security measures
    • Finalized equipment & inventory disposition, decommissioning plant, etc.
    • External stakeholder negotiations (governmental agencies, landlord, etc.)
    • Obtain approvals from business zone, governmental authorities, etc.
    • Identification of compliance and payment issues, severance packages
Step 3

Upon plant closure and after

    • Finalization of equipment disposition and plant demobilization
    • Filing government documentation in keeping with the registration, business license, board resolutions
    • Filing of all necessary financials, bank accounts, tax, VAT rebates, registered capital and customs documentation
    • Competition of all de-registration and governmental documentation and plant turnover to the landlord
GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

RESULTS

    • No theft of IP assets, physical violence or governmental authority repercussions
    • 100% of employees signed employment forms
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Adler Pelzer Group

Accuride

accuride-logo

aseptia

alliance

amercable

americhem

anisa

calient

corning

chemco

climate-master

curtiss-wright

federal-signal

greenheck

flexco

gore

hilite

HJ-Baker

Icee

mascoat

merichem

micromeritics

nanotex

oerlikon

plasticolors

rudolf-group

silfex

sweco

tile-shop

tedia

titeflex

weber

GLOBAL FOOTPRINT SERVICES: SITE SELECTION

GLOBAL FOOTPRINT SERVICES:

SITE SELECTION

GLOBAL FOOTPRINT SERVICES: SITE SELECTION

BACKGROUND

A German-owned chemical company with an ageing facility was being pressured by local authorities to relocate to an “official” chemical processing zone, as part of the Chinese government’s initiative to combat industrial pollution. EWA was engaged to conduct a comprehensive site selection process and provide the client with quantified site recommendations.

GLOBAL FOOTPRINT SERVICES: SITE SELECTION

APPROACH

Create functional definition of plant

    • Purpose for expansion, customers, supply chain, products, capital equipment, etc.
    • Definition of the site requirements & specifications:
    • Size of plant, land requirements, structural requirements, utilities and consumption, logistics, labor force requirements, ground compaction, water table, number of employees, manufacturing space, office space, employee facilities, etc.

Analysis of company performance influencers

    • Logistics, location of customer base, location of suppliers, location of business partners, freight & transportation costs, current property costs, current operational costs, government incentives, etc.
Step 3

On the ground interaction

    • Identification of 7 business/chemical parks for further exploration based upon site & company criteria
    • Personal site visits, face-to-face negotiations, meetings with other companies located in the individual business parks & interaction with local government officials
    • Tours with company executives
    • Negotiations and confirmations of land price and tax incentives
    • Analysis of the impact on startup and operational costs
Step 4

Recommendation

    • Provided 3 qualified location options with full analysis
GLOBAL FOOTPRINT SERVICES: SITE SELECTION

RESULTS

    • Significant tax and land incentives were attained by EWA negotiations
    • Client approved EWA recommendation and final negotiations are currently in process.
    • Client has engaged EWA in the role of “Owners Representative” for follow-on activities including coordinating design and overseeing construction
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Adler Pelzer Group

Accuride

accuride-logo

aseptia

alliance

amercable

americhem

anisa

calient

corning

chemco

climate-master

curtiss-wright

federal-signal

greenheck

flexco

gore

hilite

HJ-Baker

Icee

mascoat

merichem

micromeritics

nanotex

oerlikon

plasticolors

rudolf-group

silfex

sweco

tile-shop

tedia

titeflex

weber

SUPPLY CHAIN SERVICES: GLOBAL EXPANSION (MEXICO)

SUPPLY CHAIN SERVICES:

GLOBAL EXPANSION (MEXICO)

SUPPLY CHAIN SERVICES: GLOBAL EXPANSION

BACKGROUND

EWA was engaged to develop and implement a Mexican supply chain footprint strategy, to identify and qualify local suppliers, evaluate options for assembly operations, identify 3rd party logistics providers, negotiate tax incentives, hire local senior management and evaluate existing DCs.

SUPPLY CHAIN SERVICES: GLOBAL EXPANSION

APPROACH

Define Project Objectives and Requirements

    • Align on opportunities, volume requirements, cost targets

Deploy Formal Process & Develop Core Elements for Analysis

    • Identify Products to be outsourced – one product was 48% supplied from China to US
    • 80% of component spend can be supplied from Mexico
    • Labor & Logistics savings favored Product Assembly in Mexico – faster than In-House
Step 3

ID Potential Suppliers and Obtain Analytical Data

    • Identified component suppliers within Mexico
    • Interviews and factory visits to develop supplier “short list”
    • Suppliers provided detailed proposals with pricing, QC control plans, price breaks for increased volumes, samples for performance testing
    • Same process for identifying & qualifying Assembly and Packaging contractors
Step 4

Hands-On Implementation

    • Negotiations conducted with suppliers to finalize
      • Cost, payment terms, projected productivity improvements, forecasting lead times
      • Sharing of productivity/volume benefits, Inventory stocking requirements
    • Negotiations conducted with contractors to finalize cost and value-added services:
      • Provide incoming QA inspection and manage supplier returns
      • Monitor and expedite deliveries from suppliers
      • Assemble and Package product & shipment to customers or distribution centers
SUPPLY CHAIN SERVICES: GLOBAL EXPANSION

RESULTS

(Outsourced Product Line)

    • Cost Reduction
      • Reduced inventory vs China ($21MM cash) and shorter lead times, better cash flow
      • Cost reduced 5% ($6MM) vs sourcing from USA, with potential for additional reductions
      • Eliminated tariff impact
    • Other Benefits
      • Quick set-up
      • Low cost to implement
      • Good access to suppliers for USA-based QA and technical staff
      • Good quality outsourced assembly and packaging
      • Elimination of 2 DC’s from proximity to Western USA customers
      • Stable trade environment
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OUR CLIENTS

accessdata

Adler Pelzer Group

Accuride

accuride-logo

aseptia

alliance

amercable

americhem

anisa

calient

corning

chemco

climate-master

curtiss-wright

federal-signal

greenheck

flexco

gore

hilite

HJ-Baker

Icee

mascoat

merichem

micromeritics

nanotex

oerlikon

plasticolors

rudolf-group

silfex

sweco

tile-shop

tedia

titeflex

weber

SUPPLY CHAIN SERVICES: SUPPLY CHAIN ASSESSMENT

SUPPLY CHAIN SERVICES:

SUPPLY CHAIN ASSESSMENT

SUPPLY CHAIN SERVICES: SUPPLY CHAIN ASSESSMENT

BACKGROUND

An Asia-Pacific manufacturing operations of a global chemical company was struggling to make on-time deliveries, carried excessive inventories, and had excessive freight and logistics expenses (primarily from expedited shipments). EWA was engaged to identify operational problems and to develop/implement corrective actions to improve logistics & supply chain processes.

SUPPLY CHAIN SERVICES: SUPPLY CHAIN ASSESSMENT

APPROACH

Onboarding & Alignment

    • Gain thorough understanding of client’s overall business, markets, manufacturing operations, current supply chain, and logistics network

Model current state of client’s supply chain and logistics operations

    • Current logistics network
    • Process assessment
    • Determine customer requirements
    • Organization structure analysis
Step 3

Analysis to identify required changes and potential opportunities

    • Performance
    • Voice of Customer
    • Processes
    • Organization Design
Step 4

Develop recommendations and action plan

    • Short term actions
    • Medium term actions
Step 5

Hands-on implementation

    • Interim Supply Chain Manager
    • Develop RFP for logistics services
    • Implemented significant organizational changes
    • Support transition of new organization & process (bi-weekly project implementation meetings)
SUPPLY CHAIN SERVICES: SUPPLY CHAIN ASSESSMENT

RESULTS

(Outsourced Product Line)

    • Savings achieved through rate negotiation & reduction in expedited shipments
      • Carriers were consolidated & outbound logistics processes were improved, with 15% reduction in freight costs
    • Improvements were made to forecasting & planning generated the expected results
      • Inventories were reduced by nearly half, generating US$MM cash
    • Customer service levels improved dramatically
      • On-time deliveries improved to > 90%
    • Organization stabilized & capabilities improved
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accessdata

Adler Pelzer Group

Accuride

accuride-logo

aseptia

alliance

amercable

americhem

anisa

calient

corning

chemco

climate-master

curtiss-wright

federal-signal

greenheck

flexco

gore

hilite

HJ-Baker

Icee

mascoat

merichem

micromeritics

nanotex

oerlikon

plasticolors

rudolf-group

silfex

sweco

tile-shop

tedia

titeflex

weber

OPERATIONAL & COMMERCIAL PERFORMANCE: GROWTH DEVELOPMENT

OPERATIONAL & COMMERCIAL PERFORMANCE:

GROWTH DEVELOPMENT

OPERATIONAL & COMMERCIAL PERFORMANCE: GROWTH DEVELOPMENT

BACKGROUND

A manufacturer of returnable packaging materials for the automotive industry with stagnating sales engaged EWA to identify and qualify sources of business growth potential.

OPERATIONAL & COMMERCIAL PERFORMANCE: GROWTH DEVELOPMENT

APPROACH

360° Opportunity Assessment

    • An extensive review with the client of the construction and technical aspects of the current product portfolio, the market, adjacent verticals, competitor products & customer base.

Opportunity Identification

    • Identification and validation of 12 key industries as qualified verticals for expansion – based upon ease of adaptation, market size, growth potential and profit margin
    • Total of 1300+ potential new customers
Step 3

Short-listing of 5 core industries of focus for a deep dive analysis

    • Off Road Vehicles, HVAC, Outdoor Power Equipment, Pharmaceuticals, Consumer Electronics
    • Total of 370 potential new customers
Step 4

Opportunity Leveraging

    • EWA prioritized the top 10-12 companies per sector (sales channels, geographical location, etc.)
    • EWA conducted an in-depth investigation of each company & senior management and then delivered a biographical summary and contact information for 63 companies
OPERATIONAL & COMMERCIAL PERFORMANCE: GROWTH DEVELOPMENT

RESULTS

    • The client signed contracts with 9 new business partners
    • 13% increase in sales within 18 months
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OUR CLIENTS

accessdata

Adler Pelzer Group

Accuride

accuride-logo

aseptia

alliance

amercable

americhem

anisa

calient

corning

chemco

climate-master

curtiss-wright

federal-signal

greenheck

flexco

gore

hilite

HJ-Baker

Icee

mascoat

merichem

micromeritics

nanotex

oerlikon

plasticolors

rudolf-group

silfex

sweco

tile-shop

tedia

titeflex

weber