How we helped
Overview
A $5 billion global automotive Tier 1 supplier, operating across 65+ locations, embarked on a finance transformation to reduce SG&A costs, with a particular focus on restructuring its finance function. The company faced challenges due to dual headquarters, undocumented knowledge, and manual workflows, which stalled a planned HQ consolidation and created inefficiencies in financial operations.
AlixPartners led the finance restructuring and managed the transition to a business process outsourcing (BPO) model. The approach included building alignment with leadership, proactively addressing key risks and employee retention issues, designing and running a structured BPO selection process, and negotiating favorable contract terms with BPO providers. The team carefully assessed which functions could be retained versus outsourced, aiming to minimize business disruption while achieving cost savings.
The transformation resulted in $20 million in finance cost savings through the BPO transition, $1 million in annual insurance savings, and a 66% reduction in the domestic workforce. These outcomes reflect a significant shift in resource allocation and delivery model, enhancing operational efficiency and supporting the company’s long-term financial goals.