$
0
M
Annualized EBITDA Improvement
0
%
Improvement in Optimized Sourcing Spend
Challenge
The board was concerned about the combined impact of a growing cost structure and market-driven downward price pressure causing EBITDA erosion. The results of benchmarking indicated both overhead and operating cost optimization opportunities. As the Synergetics team progressed through the diagnostic phase of its engagement, it was apparent that key areas of the business had not been optimized:
- Poor leverage of captive offshore operations
- Lack of a centralized strategic procurement approach
- Excessive organization layers, low spans of control and poor optimization of labor arbitrage opportunities
- Below-target professional services utilization
- Low product support offshore ratios
Solution
Our procurement experts together with their sourcing team, focused on driving savings across 15 categories of spend through the consolidation of vendor expenses and renegotiation of high-value contracts.
Synergetics, in collaboration with the management team:
- Drove the combined actions of an organizational realignment
- Reduced non-billable headcount within the Professional Services and SG&A functions
- Leveraged operational capacity of offshore captive assets
- Improved overall product support, back-office and G&A cost structure
