Global Manufacturing And UK Logistics Assessment

Private Equity Company

Background & Brief

The client, a Private Equity company, were considering the acquisition of a majority share of a UK based company who manufactured via a subcontractor in the UK and distributed products globally. The client prior to progressing with the acquisition asked SCALA to assess the implications from a financial perspective of relocating manufacturing to the Far East. This top-level study was to assess the resultant potential changes in manufacturing costs, warehousing costs, distribution costs, incoming material logistics costs and import duties. This pre-acquisition piece of work had to be completed in three weeks. Furthermore, SCALA were requested to carry out a top- level review of UK Logistics

Project Approach

  • Review data
  • Visit and assess UK manufacturing locations
  • Visit and assess UK warehouse locations
  • Top level review of raw materials costs and availability
  • Identification of potential Far East based manufacturers. Obtaining quotations for key products
  • Assess implications on warehousing (locations and costs), distribution costs, lead-times and duties
  • Assess potential benefits of re-design of UK logistics
  • Pull together total financial implications of change
  • Benefits & Results

    A clear document was produced outlining for the Private Equity Company’s Management Board the very significant financial benefits which could be achieved from a change in manufacturing strategy. The acquisition proceeded successfully

    Final Outcome

    Post-acquisition, SCALA have been retained to undertake a more detailed deep dive including assessing other global manufacturing options and the total supply chain implications. The project is to be taken through to the implementation of a formal change in strategy. Additionally, SCALA are managing the UK Logistics change through to recommendations implementation.
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