The manufacturer of a popular grill had all the makings of a consumer mainstay but was beset by high costs. AlixPartners came in to look at opportunities across the value chain to increase supply chain resilience and lower costs.

We created more than a dozen scenarios for shifts in strategy, looking at 500 cost benchmarks and isolating between $60 million and $90 million in cost improvements. The final three models we developed offered an in-depth analysis of material, manufacturing, and distribution costs, including a country-by-country overview of procurement costs across different countries of origin.

The resulting tool allowed the company to source alternative components according to “best country” scenarios that didn’t simply go to the lowest-cost provider. Zooming out, the tools and analysis were an important piece of intellectual capital that will help to shape client-facing interactions and strategy development. 

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