Business Transformation
AlixPartners
Full Credential Description
A $4 billion global consumer electronics manufacturer faced significant margin pressure following extraordinary growth. To address this challenge, the company recognized the need to reevaluate its global cost structure and sought external support for a comprehensive transformation initiative.
AlixPartners assembled a diverse team of 55 consultants and subject matter experts to lead a large-scale global revenue and cost transformation over a two-year period. The initiative focused on streamlining processes, implementing improved organizational models, and optimizing key partnerships across the business. As a result, the team identified $100 million in annual savings and an additional $125 million in potential future savings.
Key components of the transformation included revolutionizing indirect procurement through a multi-wave strategic sourcing initiative, which alone generated $55 million in annualized savings. The financial planning and analysis processes were revamped to create a more streamlined and effective global finance organization. Additionally, the team enhanced analytics to assess the impact of social media influencer investments on sales, enabling more effective marketing spend. A comprehensive overhaul of the retailer contract strategy and trade promotion management practices uncovered an additional $30 million in EBITDA value.
Ultimately, the efforts of the AlixPartners team significantly streamlined and enhanced the organizational capabilities and effectiveness of the manufacturer, achieving results in weeks that had previously eluded the company for years. This transformation not only delivered immediate financial benefits but also positioned the company for sustainable growth moving forward.