Maximizing Value Creation in Corporate Carve-Out
Multi-national Medical Products Company Unlocks Value Through Operational Due Diligence
Challenge
Procurement and Operations Inefficiencies Draining Profitability
The target company faced procurement inefficiencies with heavy reliance on sole-source suppliers for key raw materials such as titanium, stainless steel, and cobalt. Outdated and unmanaged supplier contracts created significant pricing misalignment and exposure to market volatility.
Continuous improvement initiatives had been stalled for over five years, resulting in high fixed labor costs (30% vs. 15% benchmark) and a heavy reliance on manual processes. Limited cross-site standardization and fragmented supplier management led to cost leakage and weakened negotiating leverage.
Solution
Strategic Sourcing and Lean Transformation to Unlock Value
Conducted a comprehensive spend cube analysis across raw materials, consumables, subcontracting, tooling, and services. Designed and implemented a strategic sourcing program featuring: Competitive bidding and dual-sourcing strategies to reduce supplier dependency. Index-based pricing and consignment programs to manage commodity volatility.
Bundled services and tooling agreements to capture cross-site scale benefits. Executed a Lean operational assessment focused on high-impact sites, identifying opportunities in layout optimization, automation, and workforce productivity. Built a phased value-capture roadmap integrating quick wins and long-term transformation initiatives to accelerate savings.
Results
Significant Cost Savings and Sustainable Operational Excellence
Identified €8M–€16M in total annual savings potential: €4M–€7M from optimized procurement €3M–€6M from Lean-driven labor productivity €1M–€3M from material cost reduction at key sites
Established an integrated supplier strategy unlocking improved pricing, stronger SLAs, and better inventory control. Delivered a structured PMO-driven execution plan designed to uplift EBITDA and enable sustainable operational excellence.
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