Manufacturing Reduce Costs and Increase Efficiencies

Our part-time CIO helped this packing manufacturing company reduce costs and expand their operations through revolutionising their IT operations.

Company Profile 

This private equity-owned packing manufacturing company is headquartered in Paris. They have expanded their operations across China, France, and the UK, focusing on manufacturing IT transformation to ensure efficiency.

CEO’s Mission 

The firm aimed to scale operations, eyeing the acquisition of a plastics packaging business based in the UK with footprints in the USA and China. A primary goal was to reduce costs through IT and harness CIO-led cost savings strategies.

CIO’s Objectives 

  • Successfully complete the purchase of the asset company.
  • Seamlessly integrate the asset company into the existing organisation, by leveraging fractional CIO services.
  • Conduct a comprehensive assessment of both companies to execute IT process improvement in manufacturing and achieve significant cost reduction.

What the Associate Did 

IT Buy-Side Due Diligence

Kicking off the project, our CIO embarked on an initial scoping process. A thorough IT due diligence report of the target company was undertaken, spotlighting risks, potential manufacturing reduce costs opportunities, and issues. Then after reviewing a comprehensive data set and conducting interviews with key IT personnel, a deeper understanding of the business requirements was achieved. This report played a pivotal role in the financial justification for the purchase.

Develop Transitional Service Arrangements

Post the sale agreement, our Associate collaborated with the purchasing business to craft the necessary TSAs. Emphasizing IT efficiency in package production, he liaised with the selling company to finalise the price and transition duration.

Separation and Integration

In partnership with the purchasing company’s CIO, our Associate designed a separation and integration program. This initiative aimed to ensure a smooth exit from the TSAs within the stipulated six-month timeframe. Therefore, this was a significant component of this phase was the migration of the ERP environment from the seller’s data center to the buyer’s SAP system, showcasing the CIO strategies for manufacturing.

System Migration

Our Director took the helm in migrating all associated services, such as reporting networks and email accounts, from the asset company. Therefore, this integration into the buyer’s system was pivotal. Additionally, he negotiated license agreements with suppliers and orchestrated the establishment of the new IT organisations, marking a successful package manufacturing IT overhaul.

The Results

Under our Directors care, the purchase, separation and integration of the asset company was completed within the required six-month TSA period. In addition, cost savings of over £2M were achieved through a number of processes including IT system refinement and assessment.  

Facebook
Twitter
LinkedIn