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Identified >$80m additional benefits across target FMCG business

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Business challenge

Our client sought to identify further business opportunities to accurately value the target in a competitive auction.

Context

A large private equity firm was targeting a poultry production and food processing business. The target had a strong market presence, a large number of sites and had already identified improvement opportunities

Business impact

  • >6% labour cost reduction
  • ~4% yield improvement through reducing waste
  • >5% reduction in total procurement spend
  • 30% surplus capacity on current rosters identified
  • 65% surplus capacity achievable by modifying operating hours

Top line solution

  • Visited 14 sites, taking detailed observations
  • Conducted in-depth analysis of current site-level performance data and compared results
  • Provided a view of relative plant performance versus peers

Key takeaway

On the ground observation combined with rigorous analysis is a powerful tool for identifying realistic and effective improvement opportunities. For example, observations from the front line of high variation in site best practices and ineffective site sharing sparked analysis that sized an improvement opportunity with 25% to 65% yield impact.