Alvarez & Marsal

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Manufacturing

Manufacturing, which accounts for 18 percent of world GDP, is now facing its largest decline since World War II. Global competition, complex company structures, and emerging markets are challenging current business capabilities, while providing opportunities for prepared companies to gain market share. Input costs are challenging and IT and human capital investments are crucial considerations for all manufacturing businesses. As a result, manufacturing operations, whether healthy, underperforming or distressed, are filled with a greater sense of urgency to deliver near-term results and create sustainable growth. To successfully compete, manufacturing companies must create more effective sales and marketing strategies, develop efficient production and support processes, streamline overall costs, and manage working capital tightly to meet top-line and bottom-line expectations.

Alvarez & Marsal (A&M) has successfully managed and partnered with leading manufacturing companies to improve operational and financial performance and resolve issues related to capital structures. As one of the few multi-disciplinary professional services firms with an international global presence, A&M combines local market knowledge, an understanding of industry-wide trends, and worldwide connectivity and coordination to maximize returns to stakeholders. A&M professionals not only make recommendations to enhance profit margins, but design and provide hands-on implementation of plans to drive and achieve real results.

Alvarez & Marsal delivers:

• Development and evaluation of various recapitalization scenarios
• Analysis of projected cash flows
• Review of operations and forecasts
• Assistance to develop asset liquidation values
• Utilization of our wide industry and financial community contacts
• Creditor advisory
• Litigation support
• Access to third-party equity
• Interim management in critical functional roles

Our Manufacturing Industry capabilities include:

Revenue and Margin Enhancement

• Acquisition identification and operational due diligence support
• Channel management and sales effectiveness
• Customer and product margin increase
• Organic / in-organic growth strategies
• Forecasting and demand management

Direct Cost Improvement

• Global manufacturing strategies (on-shoring / off-shoring)
• Make versus buy analysis
• Shopfloor operational efficiency improvement
• Lean Six Sigma implementation
• Labor cost management
• Direct materials cost reduction
• Production planning and S&OP process design
• Sourcing and supplier management
• Logistics and distribution network planning
• Warehouse performance improvement

Overhead Optimization

• Organization design and span of control right-sizing
• Shared services and outsourcing
• Indirect spend management
• HR, payroll, and benefits assessment
• IT applications and infrastructure rightsizing
• Finance and administrative efficiency
• Tax optimization
• Insurance and risk coverage sizing

Working Capital

• Inventory optimization (raw, WIP, finished goods)
• AR / AP optimization
• Cash forecasting and financial control management
• PP&E utilization
• Capital expenditure planning
• Order-to-cash cycle time reduction
• Procure-to-pay process improvement