Integrated Manufacturing Firms
Accunomics assists manufacturing firms in measuring the profitability of their individual products line down to the SKU level, and aligning their product development pipelines, sales territories and distribution networks to the highest margin opportunities.
We engaged at a $1.1 Billion specialty chemical manufacturer that was a leading supplier of additives to the petroleum industry. The company had been suffering from declining gross margins, and was burdened by an increasingly complex product portfolio. As a result of our work, the company dramatically simplified its operations, removed $100 million in annual expenses, and improved operating profits by 50%.
We engaged at a fully integrated global commodity manufacturer that was struggling with declining margins, increasing operating expenses and the lowest return on capital in its peer group. A new business unit President had recently been appointed to turnaround the business. Accunomics assisted in growing the businesses’ profitability by over $300 Million, and increasing return on capital from 3% to 30% in just 18 months.
We engaged at a $900 million per year manufacturer of specialty building materials. It offered a full-line of superior quality acrylic products, but consistently fell below its target of 15% return of capital employed. We assisted the firm in reconfiguring its product line and development pipeline to seize its most profitable opportunities, and achieve its return objectives.