WorkflowOne

CHALLENGE

Remove substantial cost from the North American manufacturing distribution network, which consisted of 19 conventional manufacturing plants, 3 digital technology plants, and 40 distribution centers. Network had substantial capacity underutilization and the market needs were shifting from conventional to digital.

SOLUTION

Analyzed the North American network of manufacturing plants and distribution centers, and developed a new optimized plan capable of better serving customers while reducing fixed and operating costs. We also applied lean manufacturing concepts to drive waste out of the operations and streamline order processing.

• Closed 10 conventional plants, transferring their work to the remaining facilities
• Built new digital facilities in:
  • Cranbury, NJ (replacing Baltimore)
  • Ontario, CA (repurposing a closed conventional plant)
  • Elgin, IL
• Expanded digital capabilities in:
  • Columbus, OH
  • Charlotte, NC
  • Brennan, TX
  • Atlanta, GA
  • Livermore, CA
• Closed 19 distribution centers and built 2 new modern facilities:
  • Cranbury, NJ
  • Columbus, OH

IMPLEMENTATION

Planning and executing the North American network changes was executed on time and on budget over a 3 year period with minimal customer disruption. Result was a lower fixed cost and operating cost network with expanded capabilities in the growing technologies:

• Network realignment planned, approved by board and successfully executed in 3 years
• EBITDA improved from 5% on sales to 10%
• Press utilization targets achieved
• Manufacturing and distribution headcount reduced
• Manufacturing and distribution productivity metrics improved
• Dramatic improvement in digital technology capability:
  • Color processing across North America
  • East coast digital production for letter shop expanded
  • West coast high speed color processing added

Optio Tempore

©2018 Optio Tempore, LLC 

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(330) 650-0580

OFFICE

2082 Abner Lane
Hudson, Ohio 44236