industry
Manufacturing

Elevator co. wants EBITDA “up” and supply chain costs “down”​

Key metrics:
  • Revenue increase by 5%
  • Manufacturing costs decreased by 17%
  • Inventory cash requirement reduced by 50%​​
Value levers pulled:
  • Project management oversight
  • Cost-to-serve analysis by major product family
  • End-to-end supply chain redesign
  • EBITDA enhancement identification and roadmap

Picture this...

You’re a leading elevator equipment manufacturing company that just acquired a smaller platform company with regional manufacturing facilities. You’re hoping post-integration supply chain synergy synergies help EBITDA go up and costs go down. But you need help building an operating model to identify and achieve those value drivers.

You turn to Accordion.

We help you open the doors for post-integration EBITDA growth, by:

  • Optimizing the supply chain: creating a top-down cost-to-serve model to assess cost structure by product family and evaluating operating model scenarios to identify the most profitable and achievable configuration.
  • Consolidating footprint: Transitioning from high-cost urban centers a centralized manufacturing location in Indiana to realize operational benefits across product sourcing and reduced inventory levels.
  • Reducing labor costs: Identifying the value creation potential of eliminating like-for-like direct and indirect labor roles based on various operating model scenarios.
  • Improving topline pricing: Standardizing pricing practices across the organization and implementing updated pricing algorithms.

Your value is enhanced.

You’re now riding the elevator all the way up to the performance penthouse, doubling EBITDA by:

  • Increasing revenue by 5% (by optimizing pricing algorithms)
  • Decreasing manufacturing costs by 17% (by manufacturing and warehousing network optimization and operating model improvements)
  • Reducing inventory carrying cash requirement by ~50% (by fixing master data, demand planning, and supply planning processes
Enhanced value:

You reap multiple benefits, including:

  • Revenue increase by 5%
  • Manufacturing costs decreased by 17%
  • Inventory cash requirement reduced by 50%