Case Study
Manufacturing Operational Transformation
Operational Transformation for a High-End Outdoor Products Company Preparing for Exit
A vertically integrated company specializing in high-end outdoor products spanning manufacturing, direct-to-consumer retail, and installation was entering a critical growth and transition phase. With an exit strategy on the horizon, operational precision became a priority. The business had recently acquired a manufacturing facility in Florida, operating under a different ERP system, adding further complexity to its already multifaceted supply chain.
To prepare for a successful exit, leadership recognized the need to:
- Improve system and inventory accuracy to strengthen the balance sheet.
- Enhance work order scheduling to reduce customer lead times and accelerate revenue recognition.
- Integrate the newly acquired Florida facility, which operated independently on a separate ERP platform, into the company’s existing operational infrastructure.
- Unify cross-functional teams across manufacturing, warehousing, and distribution under standardized, scalable processes.
Deliverables
ETONIEN deployed a seasoned, hands-on operations leader to stabilize and align core business functions. The approach was broken down into four key workstreams:
- Inventory and System Accuracy
- Conducted a full audit of inventory processes across multiple locations, including SKU rationalization.
- Aligned physical inventory controls with ERP system logic.
- Trained plant and warehouse personnel on cycle counting procedures, real-time inventory updates, and proper data entry protocols.
- Result: Inventory accuracy improved from 68% to 96% within 90 days, improving working capital reporting and reducing shrinkage.
- Work Order Scheduling & Revenue Recognition
- Mapped out the end-to-end production and installation cycle to identify bottlenecks and redundant handoffs.
- Implemented a visual production board and lean scheduling tools to streamline work orders.
- Created tighter alignment between sales, manufacturing, and installation teams through shared KPIs and daily huddles.
- Result: Average customer lead time reduced by 22%, accelerating revenue recognition and improving cash flow.
- ERP Integration & Facility Alignment
- Led a rapid due diligence assessment of the Florida facility’s ERP setup.
- Selected a phased ERP migration strategy, prioritizing financial reporting and inventory modules first.
- Built a cross-functional team of local and HQ staff to ensure process adoption.
- Result: Florida facility was fully integrated into the core ERP system within 4 months, enabling consolidated reporting and inventory visibility.
- Exit Readiness
- Improved reporting accuracy to support financial due diligence efforts.
- Formalized SOPs and implemented scalable training to de-risk operational dependencies.
- Worked closely with the CFO and private equity stakeholders to ensure KPIs aligned with exit goals.
Outcome
With a clear focus on operational excellence, systems integration, and financial discipline, the company positioned itself for a higher multiple at exit. The intervention not only improved day-to-day efficiency but also significantly reduced risk for potential acquirers.
