a top metal distributor and processor in north america, generating $2.2 billion in annual sales. operating 50 service centers throughout the US, Canada, and Mexico, with joint ventures in asia, the company enables customers to order diverse high-quality metals in cost-effective amounts by centralizing purchases with one supplier.
Achieved planned cost savings
The one-time profit from selling excess assets exceeded restructuring expenses
New analytical tools and employee training available for future evaluations
Functioning as a local service hub and primary depot for distributing slow-moving products across the country, our client’s chicago branch was falling short of profitability targets.
After determining the operation’s scale, LVP adjusted processing and warehousing equipment to optimize costs while preserving delivery schedules and enhancing customer service.
We identified the types and amounts of processing and warehousing equipment needed, created better material flow plans, and moved equipment to minimize workflows and duplication. financial and virtual warehouse models were built to support equipment moves and material handling adjustments. twelve restructuring options were proposed based on these models, and we collaborated with the client to apply the chosen solutions. finally, we informed the client about possible gains or losses from asset sales.
LVP successfully guided the client through restructuring to achieve targeted cost savings. we delivered $10 million in ongoing annual savings from manufacturing, staffing, and leases, and helped the client gain a one-time profit from selling excess assets that more than covered restructuring costs. we created analysis tools to determine optimal inventory levels, processing capacity, and staffing for business changes, and trained client staff in these tools and processes to support future evaluations. the tools and trained personnel from this project can be used for similar assessments at other large service centers.
