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Case Studies

  • A LEADING AUTOMOTIVE AUCTION HOUSE

    • Problem: The Company had grown quickly through acquisition and had not integrated systems or processes leading to an inefficient operating model
    • Solution: Implementation of a consistent Business Operating Model
    • ROI: Productivity Improvement across key processes realizing over $70m in annual savings

    A GLOBAL PROVIDER OF BUSINESS WORKFLOW SOLUTIONS

    • Problem: As a result of a deteriorating customer base due to economic and competitive pressures, the client was projecting an EBITDA loss
    • Solution: Develop and implement a 1-year turnaround program to return the businesses back to profitability
    • ROI: Achieved $26m annualized cost reduction savings
  • A DOMINANT PLAYER IN PHYSICIAN BILLING

    • Problem: Inefficiency in operational and management processes due to rapid growth
    • Solution: Design and implement a new operating model and metrices for reporting
    • ROI: Over $10M in annualized benefits; Four-fold stock appreciation

    A LEADING HEALTHCARE SOFTWARE PROVIDER

    • Problem: Comparatively low EBITDA to that of competition and inability to reduce costs in line with market conditions
    • Solution: Implementation of a pan company cost reduction program to assist in regaining market competitiveness
    • ROI: Achieved over $15m in combined annualized savings with overall project ROI of 4.2 to 1
  • A GLOBAL SOFTWARE COMPANY

    • Problem: A leading private equity firm invested in a failing business and needed to turn it around with goal of £60m in cost savings within the first two years
    • Solution: Develop and implement a three-year turnaround program based on redesigned processes to achieve reductions in costs and prevent revenue leakage
    • ROI: Achieved £57m annualized savings over 2 years

    A LEADING FOOD SERVICE FRYING OIL PROVIDER

    • Problem: Low customer satisfaction and lack of operational efficiency due to inconsistent processes and systems across 32 servicing centers
    • Solution: Standardize operational, management, and system processes and procedures across the company
    • ROI: Improved customer satisfaction; Reduction in inventory and revenue leakage contributing to $7m annualized saving
  • A GLOBAL MANUFACTURER OF MEDICAL EQUIPMENT

    • Problem: Business and system processes were not aligned with the strategic direction. Work-around solutions were implemented by ”siloed” departments not allowing for integrated solutions.
    • Solution: A thorough assessment unfolded deficiencies in: IT coordination / communication, enterprise-wide accounting and contracts system, and centralized procedures / best practices. Standardized policies, accounting practices, a contracts management process and ERP system were all implemented.
    • ROI: Initial year ROI was 3.4 to one, with a follow-up year yielding a 4.6 to 1 return

    A GLOBAL PROVIDER OF ENGINEERING SOFTWARE

    • Problem: Following the divestiture of its hardware division, the company was required to restructure its operations to align overall costs with future revenue profiles, which meant targeting overhead, SG&A, and facilities consolidation
    • Solution: Synergetics’ business assessment targeted a $20m reduction in operating costs. These cost reductions were achieved through a structured implementation program mainly focusing on overhead reduction and operating efficiencies
    • ROI: $20M+ in operating costs achieved with the consolidation of 6 regions into 3
  • A LEADING SUPPLIER OF MEDICAL VISUALIZATION AND ENERGY SYSTEMS

    • Problem: PE owner requested Synergetics to assess operational efficiencies of company along the lines of SCM, support area outsource opportunities, and operational processes to find savings and define operational processes
    • Solution: For SCM optimization, systems were put in place for inventory management, materials cost reduction and centralization. Core processes were aided by MOS and Lean manufacturing principles, and non-core areas were considered for being outsourced
    • ROI: Total savings achieved +$8.5M/yr =12% reduction in COGS

    A LEADING PROVIDER OF PREPARED FOODS AND SPECIALTY BAKERY PRODUCTS

    • Problem: Under new ownership and CEO, a food Products Company w/ 3 Divisions (Bakery, Fresh Foods, DSD) was formed thru poorly integrated acquisitions, resulting in inefficient operations and excessive costs
    • Solution: Cost reduction targets were established that would be utilized to set strategic direction for acquisition. Once acquired, Synergetics worked directly with the management team to implement strategy, develop an Operating System, and achieve a targeted run rate
    • ROI: Reduced “run rate” costs in excess of $20M/yr; Achieved a 33% SKU; Reduction/rationalization, formulation and consolidation and closure of two facilities; Bakery division sold for a healthy profit
  • AN INTERNATIONAL COSMETICS AND OTC PHARMACEUTICAL COMPANY

    • Problem: Under new ownership and senior leadership for a turnaround situation, the company had significant challenges in managing the operational (service levels) and financial performance, with 3 straight quarters of low earnings results.
    • Solution: From the business assessment, four essential areas in which the company was failing were identified -- unacceptable retail service levels, rising cost of goods, poor management of working capital, and excessive SG&A costs. Synergetics developed a turnaround plan to address these failings.
    • ROI: Service Level Improvement Fill Rate from 85% to 97%; Working Capital Improvement with Inventory Reduction 17% ($120M base); Annualized P&L Savings $26.2M with COGs -6.3%, EBITDA+4.2%

    A LEADING INFORMATION TECHNOLOGY RESEARCH AND ADVISORY COMPANY

    • Problem: A newly appointed CEO engaged Synergetics to assess the potential cost reduction opportunities across its large support operations (SG&A)
    • Solution: Since the purpose of the engagement was to assess the company’s support structure and associated costs, the following key areas were of interest for cost take-out: Organizational Design for staffing, Financial Reporting, Support Function Productivity, and Business Process Control
    • ROI: The engagement achieved an $18M annualized “run rate” in headcount savings over a 20-week project
  • A GLOBAL DEFENSE AND AEROSPACE SYSTEMS COMPANY

    • Problem: An assessment of its business operations yielded inefficient materials sourcing and cycle time processes, in addition to high labor costs
    • Solution: A re-engineering implementation program was put in place in several areas of its manufacturing process, along with an aligned organization design and SAP Systems implementation
    • ROI: Aircraft assembly time reduction of 42%; Reduction in Inventory of 12%; BOM reduction of 16%; Productivity improvement of 16%

    A LEADING AUTOMOTIVE DISTRIBUTION AND SALES COMPANY

    • Problem: +60 autonomous sites with minimum amount of standardized processes and/or procedures
    • Solution: Standardize and streamline processes across the company
    • ROI: Achieved $70m annualized savings