Case Study
Value Creation
Gross Margin improvement through procurement and innovation
Principal
Private Equity UK & US
Type
PE-Transformation and Growth
Industry
Recycling
Turnover
EUR 100mln
Tasks
Operational Improvemnt
Duration
1 year
Services
Transformation Enterprise value creation
![513-min 513-min](https://strongfieldmanagement.com/wp-content/uploads/2022/11/513-min.png)
Synopsis:
Reorganisation of sourcing and procurement for reduction of material cost to prepare secondary sale and exit
- On ground analysis with two external operations and plastic specialist to identify weakness in the materials cost processes
- Execution of ABC and RSU analyses of complete procurement portfolio, introduction of e-auctions to lower material costs
- EUR 2mln Investment into innovative technology to use and process „low grade“ and recycled PP-materials
- Regular reporting and tracking of performance improvement with the advisory council and investment manager
Silvio Stockmann