Client Description

Mid-cap manufacturer and distributor of various paper and corrugated products for the food service and specialty product categories.

Background

The client requested TPG to evaluate and recommend changes to their existing distribution network and to specifically identify improved processes and related savings to their main distribution facility located in the Midwest.

Objectives

Analyze and assess the client’s existing distribution network to identify short and long term changes to reduce labor and logistics costs, improve customer service, and generate an acceptable ROI of any required capital associated with the recommended changes.

TPG Approach

TPG led an exhaustive study of the current network and identified four (4) final options to improve customer service while generating breakthrough reductions in labor and distribution costs

Impact/Results

After additional analyses and refinements the client agreed to an option that generated an internal IRR of 21% and reduced total distribution costs by over $2 million per year. An implementation plan was developed and execution began 6 months after the final option recommendations were approved by company leadership.