The concept of time as the most valuable resource isn’t new and struggling businesses should NOT waste another minute of time settling for “advice with no action” from their consultants. I hear from my clients and other business leaders is that it’s time to disrupt and re-define what an effective consulting engagement looks like.
One of our clients was about to embark on a 5-site consolidation into one new facility. Seeking to avoid transferring known inefficiencies from the existing sites, the client engaged us at Cornerstone Consulting Organization (CCO) for assistance.
Among the many challenges included a highly inefficient service department, inconsistent and under-developed processes, poor inventory accuracy, availability, and placement and overstaffing.
Also, storage capacity, both current and required, was not well-understood. Storage containers were not matched to usage rates and placed in inconvenient areas. Part consumption rates were not tracked or documented, often leading to delayed completion of repairs and expedited deliveries.
Combined, these factors created a significant, profit-limiting dilemma for the client.
Site Selection Magazine, a national publication covering corporate real estate and economic development, recently featured Cornerstone Consulting Organization in its latest issue. In their article, “Eyes Wide Open,” the magazine discussed how Cornerstone can support local economic development agencies in their efforts to attract, expand and retain businesses. Click here to read the story.
With antiquated equipment, staffing issues, and increasing demand, our client’s on-time delivery performance was suffering. Changeover times were increasing; unplanned maintenance was crippling overall equipment effectiveness (OEE); and material conversion rates had become highly inefficient. Entropy had consumed the operation. The result was suspended or significantly disrupted vehicle assembly, excessive premium freight charges, high employee turnover (especially in key positions), and a loss of customer confidence.
Volatility in the Manufacturing Industry
We keep hearing that the economy is doing great, so why are so many manufacturers downsizing? Since the Great Recession, the industry has become accustomed to instability. We’ve seen reductions at multiple OEMs in 2019, and now we are beginning to see the downstream impact of these reductions on many Tier 1 manufacturers.
Business Cycles Happen.
The automotive and heavy-duty truck industries are certainly not exceptions to this rule. Don’t get caught off guard by adverse economic circumstances. Pay attention to these key factors to determine how well your business can tolerate an economic or market downturn:
Challenged with an accelerated consolidation and urgent need for synergies, an automobile components manufacturer relied on Cornerstone Consulting to lead them to excellence in safety, quality, cost, and delivery performance.
Cornerstone Consulting Organization recently appointed Mr. Adam DeBoskey to the role of Vice-President of Business Development. In this role, Adam will have primary responsibility for growing CCO’s consulting services business with both new and existing clients. Adam joins Cornerstone with more than 28 years of experience in sales, marketing, engineering, and operations in a wide variety of industries.
The Value of Due Diligence & Accelerated Integration
The Cornerstone Way is rooted in accountability, discipline, and execution. We have the depth and breadth of experience and the tools necessary to rapidly deploy strike teams and quickly assess M&A targets in terms of performance, alignment, and probability of long-term success. An integral part of our standard due diligence report is an assessment of expected synergies, including the complexity or investment involved in achieving them, their probability of success, and the value they would deliver. This is fundamental to the overall valuation of a transaction. We have delivered significant business value in many segments, including aftermarket distribution, high-touch retail, class 8 truck, consumer goods, government and defense, food/FDA, Tier 1 and 2, and automotive OEM.
Controlling the flow of materials through your operation is key to maintaining a healthy bottom line. Your business is much like a bucket (inventory) with one faucet flowing in (raw materials) and another faucet flowing out (finished product) to customers. You want to control both faucets as much as possible to ensure your bucket never overflows or runs dry.