We typically measure our success based on our client’s financial performance. Specifically, sustainable and profitable revenue growth comes from:
- Reduced costs. We have developed focused supply chain reviews, leading to significant cost reduction, improved process and supply responsiveness by reducing inventories and product costs.
- Increased revenue. Our clients realize productivity gains and increased cash flow due to improved business processes and enhanced performance metrics.
- Improved entry into global markets. Innovia can help build market share and improve your market position worldwide. Our global network of affiliates can source deal opportunities, assist with the understanding of local and cultural issue or help position your product or service in new markets.
Past Successes:
Problem: Client’s logistics costs appeared excessive at over 3% of sales
Solution: A routing analysis and channel cost optimization was undertaken. This was followed by an aggressive rate re-negotiation and the development of a service provider selection decision making tool.
Results: An annual cost savings of ~$200K (20%) cost reductions in logistics costs was achieved. This represented a 5 x ROI.
Problem: A primary manufacturer of alternative mobile generator products was experiencing a product margin challenge.
Solution: A structured approach was used to identify a 30% cost reduction to the overall product cost. A project management and tracking tool was developed and using a modified Pareto method a road map for achieving the goal was laid out. Through inventive negotiating techniques, key suppliers were invited to collaborate in solving the problem. Resources and energy were focused on best opportunities and results were forthcoming.
Results: Achieved nearly 25% to date (~$9M value over 3 year LTA)
Problem: A leading aerostructures manufacturer had grown rapidly and developed an unwieldy supply base of over 300 suppliers
Solution: A commodity analysis identified key areas of opportunity. The machined parts supply base was rationalized from 14 vendors down to 2 using a proprietary bidding, analysis and transition process.
Results: Achieved a savings of 16% average (~$200K/annum)
Problem: Inventory turns in a complex aircraft parts manufacturing facility were languishing at a rate of only 3 turns with numerous instances of shortages of parts.
Solution: An inventory profiling technique identified particular areas of opportunity and determined that the root cause was due to inaccurate ERP master data and parameters. This was in turn caused by a lack of understanding on the part of many users of the importance of this integrated data. Key user training was undertaken around the impact of master data on shop loading and purchased inventories.
Results: Created $900K of value (cash at WAAC) (3 stock turns) through improved stock turns and reduced inventories by implementing better use of BAAN ERP
Problem: A British company required Canadian distribution of a niche product line of cycles into a new market. The problem was that the product was relatively unheard of and expensive due to foreign exchange rates, shipping costs and dealer mark-up.
Solution: Developed new marketing materials that repositioned the products in the local market, created a buzz around the products that provided free promotion in magazines and tv.,and word of mouth endorsements. Identified opportunities for different channels of distribution that allowed for direct targeted selling and therefore increased margin.
Results: A brand was created around each product in different market segments, which after a year of promotion, was now recognized, thereby creating interest in the product. Successfully doubled Canadian sales in two years.
|