Product Sourcing and Component Purchasing Assessment
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Challenge
The client, a Private Equity company, were considering the acquisition of a percentage of a German based company and asked SCALA to support their due diligence process from the perspective of manufacturing, product sourcing, component procurement and company capability. Specifically, they wanted to assess supply and manufacturing risks going forward and opportunities for beneficial changes.
Client
Private Equity Company
Service Tag
approach
The project included an assessment of the availability and price inflation of key materials and components across the supply chain.
A review was undertaken of the capability of the current product manufacturers, including their operational performance, business mix, and associated risks and resilience.
The relationships between the company being acquired, manufacturers, and component and material suppliers were also reviewed to identify dependencies and supply chain risks.
The project also defined and detailed opportunities for cost savings and value creation.
Outcome
A clear document was produced for the Private Equity company’s Management Board outlining the risks within the current structure, the opportunities for improvement, and the risks associated with those opportunities.
Following the review, the acquisition proceeded.