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     Specialty Chemicals Success Story 

    Implementing a global supply chain and operations platform for growth 

Driving value across multiple international companies with different cultures

This private equity owned chemicals company operates out of six global manufacturing locations including the USA, UK, and India. The company was previously a division of another client of Maine Pointe before being carved out and sold. The new private equity owner is also an advocate of Maine Pointe, having successfully worked with us at another portfolio company.

Management at the new company were not initially considering bringing in external help. However, Maine Pointe’s good standing with the PE firm prompted them to invite us to help establish strong supply chain and operations fundamentals and drive cultural alignment at their manufacturing facilities in the US and UK.

This story is for PE executives and company CEOs who want to:

  1. Drive cultural alignment and integration across recently-acquired business entities
  2. Build a global supply chain and operations platform for growth
  3. Achieve synergy savings and service improvements across the end-to-end supply chain
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Capturing the potential value in two merging international companies

At the beginning of Maine Pointe’s TVO™ analysis, we encountered some reluctance to change. There was a high degree of skepticism about our ability to drive additional value. The two companies were struggling to align their very different cultures and management styles. This lack of integration meant the firm was not able to take full advantage of its global footprint.

Working closely with the client’s team, Maine Pointe implemented our hands-on, Total Value Optimization™ (TVO) approach, supported by leader and organization improvement (LOI) and data analytics expertise, to drive cultural alignment and improvements across the global supply chain and operations by:

  • Leading the executive team through a focus and alignment session. This helped them align and communicate the purpose, mission and values for the integrated company to internal and external stakeholders
  • Training the global procurement and logistics organization in a standardized strategic sourcing and negotiation process to leverage the value of the global supply base
  • Developing and installing a tailored global management operating system for operational excellence. This helped reduce costs, optimize operational efficiency and increase the capacity utilization, setting the organization up for acquisitive growth

Leadership has recognized the value derived from organizational change. As a result, they now plan to roll out the new systems, values and procedures across their worldwide operations. As a trusted partner, Maine Pointe will continue to help build and support their international expansion strategy leveraging our unifying TVO at new acquisitions in France, Belgium and the Netherlands.

The results

Maine Pointe took a hands-on approach to help our client:

  • Embed standardized processes across the organization
  • Develop and instal a tailored management operating system for operational excellence
  • Build a global supply chain and operations platform for growth
  • Transition from operating as two regions to one global operation
  • Align and communicate the purpose, mission and values for the integrated company to internal and external stakeholders
  • Improve annualized EBITDA by 21%
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Lessons learned for other executives

  • Even if you are skeptical about driving added value within your supply chain, further savings and service improvements can be made
  • You can implement a global operating system within months rather than years
  • Don’t underestimate the power of aligning your organization from leadership to the shop floor to help drive change and build a foundation for communication across the business

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    Executives Speak

    A company president and CEO explains how his organization achieved a double-digit EBITDA improvement

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