The last three years have been a wild rollercoaster ride across global industries. Customer preferences shifted more drastically and more quickly than ever before, with certain markets suddenly experiencing significant demand increases and resulting supply shortages. From masks to flour and toilet paper to microchips, waves of specific consumer demand changes have created cycles of bottlenecks followed by overcapacities, which combined with difficulties in international and domestic shipping, security of supply, labor shortages and cost inflation have compressed margins.
As a result, many companies find themselves with the need to re-prioritize specific products, deal with idle capacity, and in general re-evaluate their cost structure. Manufacturing footprints and underutilized productive assets are an obvious and necessary target to recover and grow margins. However, plant consolidations and other footprint optimization (FO) measures can be challenging and complex for any organization. From managing customer relationships to understanding available capacity, there are a multitude of factors that must be considered to ensure a smooth transition.
Based on A&M’s experience, these are the most important and frequent omissions and mistakes organizations commit in this context:
- Lacking Adequate Project Management Organization (PMO) Structures
- “Forgetting” Your Customers
- Miscalculating Available Capacity
- Neglecting Logistics Cost Impact
- Underestimating the Hiring Effort
- Skimping on Retention
- Getting into Legal and PR trouble
- Validating Issues and Quality Certifications
Read the Full Article Here
Going Big and Moving Fast: How PE firms in North America and Europe are Adapting Value Creation to Market Pressures
November 26, 2024
At Alvarez & Marsal (A&M), our exclusive survey of PE executives in North America and Europe has revealed how these market forces are approaching transformation in the industry differently and where they intersect.
Show Me the Money, But the Right Money Please!
November 1, 2024
Given the complexity of the current economy, shaped by the challenges of rising interest rates and inflation, volatile markets, shifting business models, and financially strained vendors and customers, it is essential for organizations to take proactive steps to drive profitable sales and commercial performance. Interest rates and inflation have become dominant forces steering economic dynamics.
James Marceau Recognized as a Top Private Equity Consultant and Leader of 2024 by the Consulting Report
November 1, 2024
The Consulting Report proudly announces A&M Managing Director James Marceau as one of The Top 25 Private Equity Consultants and Leaders of 2024. These leaders play a crucial role in navigating high-stakes transactions, solving operational challenges and driving value creation strategies across diverse industries.
Alvarez & Marsal Enhances Its Procurement and Sourcing Offering Appointing John Fiorentino as a Managing Director
October 31, 2024
Alvarez & Marsal announces the appointment of John Fiorentino as a Managing Director within the firm’s Private Equity Performance Improvement (PEPI) group. Mr. Fiorentino’s expertise unlocking procurement and supply chain-driven value creation, in support of private equity (PE) firms and their portfolio companies, provides the perfect blend of experience to expand A&M’s Procurement and Sourcing group’s strategic capabilities.
