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Manufacturing footprint redesign in concrete prefab manufacturing

  • 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‚Äôs 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