Manufacturing footprint restructuring for NA tier-one supplier
A large Tier One supplier sought to restructure its North American footprint in order to reduce costs and best position itself to compete and win.
Working with the senior client team, Strategy& identified ~$80 million in annual savings and positioned the organization long term to most competitively serve U.S. based OEMs. The team analyzed labor, capital, and logistics tradeoffs, modeled the impact of achieving best in class productivity and scale, and illustrated the importance of embarking on a footprint redesign in the context of competitive threats. Strategy& designed and led the programs office to manage North American network restructuring, including site selection, setting up the supply chain, developing an HR and training plan, planning equipment moves, etc.