Transportation & Logistics
MERU CASE STUDY
Identified $8M of improvement opportunities for a multi-national distribution company
- Multi-national distribution company challenged by complexity in the operating model
- Annual revenue of approximately $400 million
- The Company faced EBITDA pressure (30% year-over-year decline) due to significant revenue losses and a relatively high fixed cost structure that it struggled to reduce in line with revenue
- The mid-year reforecast of the current year budget showed a further drop that worried the Company's lenders, prompting the financial sponsor to hire MERU
- Evaluated the Company’s operating performance and prepared a revised operating plan and cash flow forecast
- Utilized network of strategic partners to assess the logistics and warehouse processes to complete a comprehensive overview of identified performance improvement initiatives
- Assisted in the development and management of a 13-week cash flow forecast
- Assessed the Company’s billing process and recommended a combination of system training and process changes to solve the problem and improve invoicing speed
MERU identified over $8M of EBITDA improvement opportunities within four areas, amounting to 80% upside on current year forecasted EBITDA.
Authored report outlining key performance improvement initiatives, levers associated with each initiative, impact on EBITDA / Cash, and one-time implementation costs to achieve that was shared with lenders.
Created implementation plan for the initiatives identified and obtained buy-in from the Company, sponsor, and existing lender base.