In the two years since its PE acquisition, this leading home furnishings manufacturer and distributor has grown rapidly through acquisitions. However, in the highly competitive retail market, significant increases in raw material costs had resulted in relatively flat top-line growth.
Based on a previous relationship with one of the PE firm’s senior executives, Maine Pointe was brought in to help create, implement and sustain strategic procurement and procurement of logistics-related improvements and enhance the leadership team’s ability to monitor results, determine variances and take timely corrective action.
When Maine Pointe’s analysis began, the company was suffering from considerable ‘consulting fatigue’. Two other consulting firms were already working in different areas of the business and Maine Pointe was the third firm that had been brought in to focus on procurement.
Maine Pointe’s analysis team needed to work in partnership with senior executives to break down their skepticism and convince them that, working together, we could deliver the measurable, sustainable results they required. As a result of this and Maine Pointe’s hands-on approach, the leadership team threw its full support behind the initiative.
This was a very self-aware organization which described itself as ‘siloed’. The CEO knew where the company was in terms of maturity but was cynical about its ability to improve. Procurement was tactical in nature. There were few formal contracts with the 450+ suppliers, about 1/3 of whom are international. Logistics had 57 individual carriers across all modes with a primary focus on lead times rather than rates.
Working hand in hand with the client’s team, Maine Pointe:
The competitive advantage this has given them puts the company in a strong position for future growth.
Working closely with the client’s team, Maine Pointe’s collaborative, integrated Total Value Optimization (TVO) approach delivered the following benefits::
I would highly recommend Maine Pointe. Our experience has been excellent and the results speak for themselves.” - Company President & CEO