- In this geographical area, our client owns and operate 6 production sites with an average utilization by 60%. The intention is to increase utilization by reducing the overall capacity, this will help reducing total fixed costs.
- Furthermore, the product portfolio of the client shows products with very different marginality. This is also the opportunity to review and purge the portfolio.
- Our first activity is the analysis of the margins by product, area and customer and by looking the specific revenue generated we propose to purge 20% of the items
- The other activity is to define scenarios of production network where the remaining products are concentrated on the most efficient factories and close to final customers
- We generate 18 scenarios and simulate the effect on company’s EBITDA to facilitate the decision. Our total-landed-costs simulator allows in few minutes to create a scenario, calculate the EBITDA and compare to other scenarios