Complex manufacturers typically produce a wide variety of products for an array of customers from several production lines and plants. In industries ranging from specialty chemicals to electronic components, metal, rubber, and plastic parts, paper, textiles, packaging, pharmaceuticals, food processing, building products, and metals processing, Profit Velocity sheds new light on the opportunity costs of time on production assets and how to better exploit those assets. From extensive experience working with customers in these industries, we know that the more complex the business, the greater revenue and profit potential that lies hidden within the cloud of complexity.
Who can benefit
Private Equity Investors
To deliver superior returns to their limited partners, Private Equity firms who invest in complex manufacturers are constantly seeking new ways to help their portfolio companies accelerate revenue and EBITDA growth. For distressed and underperforming businesses, the pressure to deliver immediate and significant gains is enormous. Profit Velocity’s expertise and proprietary technology are ideally suited to these demanding situations. In just six weeks, leveraging our proprietary software tool, Profit Velocity converts commonly available data sets from sales and production records into remarkably vivid new visibility. Leveraging the PV System’s state-of-the-art What If Planning capabilities, we provide detailed roadmaps to rapid revenue and EBITDA gains. Portfolio companies often begin harvesting gains in the same quarter of project kickoff. Made possible by our patented technology, our six week cycle time from project kickoff to actionable insights enables Profit Velocity to deliver great value even within the very tight timeframe of a due diligence process.
Profit Velocity supports transaction and operating partners throughout the ownership cycle:
- Pre-acquisition: Review confidential information memorandums and participate in management team presentations to identify specific revenue and EBITDA improvement opportunities that become part of the investment thesis.
- Post-close: Within 100 days, develop financially optimized demand and supply plans that address product and customer mix optimization, plant expansion / consolidation, pricing, production and sales management strategies.
- Pre-exit: Work with management teams to develop robust sales and operations plans that integrate seamlessly with financial projections to substantiate superior valuations.
Advisors and Consultants
Developing defensible financial projections is the cornerstone of most sell side engagements. However, most projections are developed using aggregated data and fail to identify opportunities to drive greater cash contribution that is hidden in the business complexity. Our customers rely on our proprietary analytics to realize otherwise unavailable revenue and EBITDA gains that can substantially increase enterprise value.
Developing a plan of reorganization requires timely and detailed information regarding customer and product profitability and asset utilization to support plant network optimization and rationalization decisions. The challenge, however, is that conventional systems and metrics use aggregated data to drive decisions and ignore constraints within operations that impact customer and product profitability. Within six weeks, Profit Velocity’s proprietary analytics can illuminate the pricing, production and sales management decisions that will become the foundation for a more rapid and successful turnaround.
Far too often, when a new engagement is launched, management consultants get bogged down collecting and cleansing a client’s raw data before they can begin building complicated Excel models that are intended to help the consultants understand the client’s business at a level of detail sufficient to offer useful guidance and improvement programs. Thanks to Profit Velocity’s remarkably powerful and flexible information platform, this front-end process is dramatically expedited, allowing consultants to jump right to value-adding consultation early in the engagement cycle. Armed with Profit Velocity’s analytical and planning platform, consultants no longer need to burn up precious timeline and consulting hours just trying to get the data under control. Instead, consultants to manufacturing firms can leverage the power of the PV System to immediately begin collaborating with the client to develop action plans that will achieve tangible, near-term gains in revenue and profit.
Corporate Planning & Analysis Teams
Understanding which products to make on which production lines to more profitably load the plants is a key driver of supply side economics. Similarly, insightful demand segmentation enables better pricing strategies that will drive more profitable capacity utilization. The PV System’s analytics and planning capabilities quantify the opportunity cost of prioritizing one customer or product mix over another and support Chief Supply Chain Officer and Sales & Operations Planning teams in making the daily decisions that drive superior shareholder returns.
Senior Manufacturing Executives
Top executives parachuting in to turn around a complex manufacturer need to know as fast as possible: Which products are really making money? Which customers should we nurture or back away from? Which products need to be pruned? Which facilities are delivering bottom line results? Which are not? Gaining comprehensive and detailed insight is the key to defining a winning plan of action. But conventional metrics and methods leave much to be desired. By contrast, regardless of the level of complexity, the PV System provides astonishing visibility into these vital questions—all within a time frame just not possible by any other approach. Every day that goes by in a turnaround is a lost opportunity for improving annual results. The PV System is designed to provide top executives with the insights they need to quickly gain control over the key points of leverage that will boost operating performance and deliver on promised financial results.
Managers & Analysts
Managers and analysts need hard data that provides definitive answers to tough questions. And they need it fast. In complex manufacturing firms with thousands of SKUs, an array of customers, and multiple facilities, zeroing in on the numbers that will answer those hard questions is an enormous challenge. With PV’s state-of-the-art profit analysis and planning platform, managers and analysts across the enterprise—in marketing, sales, , production, operations, supply chain, and finance—quickly gain an entirely new level of access to the detailed answers needed to drive superior operating results.