Integrated Protein Producer

The Situation

  • Company historically enjoyed healthy levels of profits, but performed below average from competitive industry standpoint for more than a decade.
  • EBITDA was approaching breakeven due to lower protein prices relative to historical averages and higher operating costs relative to its peers.
  • ​Company sought advisors to assess and assist in implementation of operational improvements.
  • Company had an internal goal to increase profitability by $75MM annually.

Role(s)

  • Financial Advisor

The Work

  • Worked executive management team to assess revenue, COGS, and SG&A improvements.
  • Implemented CR3’s Projects in Process gating system to prioritize, shift resources, reduce cycle time, and improve outcomes of 600+ active projects the company was spending resources on prior to CR3 assessment.
  • Provided process and project management to complete a reduction in force and other SG&A reductions in a four-week period vs. the planned two-year transition.
  • Mined and analyzed big internal data to make recommendations for increasing revenue and gross margin. Provided customer, product, and market profitability insight along with detailed improvement actions and project management support.
  • Analyzed and recommended opportunities for increasing direct-to-customer shipments, warehousing strategies, and logistics improvements.
  • Provided analysis and recommendation to refocus management’s action in business investment with higher probability of payback and return of investment.

The Results

  • Operational assessment resulted in analyzing and identifying business improvements valued at $145MM to $245MM of increased profits per year.
  • Worked with executive team to implement process improvements that increased profitability by $40MM per year. Projects valued at an additional $14MM of profitability improvement were in process as CR3 transitioned further implementation to company.

Back to case study search

Overview

  • Agribusiness
  • Performance Improvement

Engagement Team