This specialty chemicals and materials company is a leader in advanced battery technology. The business has historically focused on providing advanced batteries, battery management systems, and energetic devices for defense, aerospace and medical markets.
The company was already profitable, with >20% margins. However, as new competition threatened to disrupt the market, their customers were demanding aggressive price roadmaps. The PE owners needed to affect rapid and sustainable changes to their cost structure.
Maine Pointe was initially engaged to help infuse best practice and operational excellence across the organization.This resulted in 31% productivity improvement and a 9% increase in EBITDA. During the course of the engagement, which stripped away unnecessary waste and inventory, we exposed other areas that could be addressed by having the right supply base and partners in place. As a result, senior executives invited us to help them take the next step on their supply chain transformation journey towards Total Value Optimization™. Our challenge was to help them to not only maintain/regain current business but also penetrate new markets.
Our initial analysis had uncovered a cost plus culture and, as we looked deeper into the client’s procurement function, we found that it was very immature. To move procurement up the maturity curve, our subject matter experts helped the client better define applications and requirements of a highly intellectual high-end technology environment. To do this, we integrated the procurement process into the development and operations functions. We achieved this through:
As a result of the tools and training we helped implement, our client is now empowered to make better choices and has higher visibility into the value components of its products. This gives them the ability to respond rapidly to new market requirements. This strengthened position has enabled them to recover lost business and gain market share by breaking into new markets.
Maine Pointe's experience team helped out client to:
Maine Pointe’s approach was to deploy very knowledgeable technical detailed resources on the ground that worked hand in hand with our employees to understand the operation and develop the right tools for the business to drive the success we needed. From my experience, this sets them apart from other consulting firms.” Senior Executive