Introduction to Symbius

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Introduction to Symbius

  1. 1. Real Supply Chain Partnerships for Private Equity Leaders 2009
  2. 2. What Our Clients Say “ Symbius has been instrumental to our purchasing and supply chain strategy and programs. The incredible progress we've made in the past year could not have been accomplished without their guidance, support and expertise.” Scott Hearty, National VP of Purchasing Operations, Standard Pacific Homes (majority owned by Mattlin Patterson) “ Symbius grasped the essence of our business, and discovered growth enablers via supply chain we did not see. But it is their implementation help that also mattered so much!” Jim Molzon, Vice President Global Logistics, Solectron (now Supply Chain Advisor, TPG) “ Symbius excels at linking Results to Strategy…that is different! They deliver.” Bob King, CEO, Corporate Express “ Symbius innovated a new logistics model for our after-sale business that gave us market advantage.” Rick Feltenberger, SVP Supply Chain, DIRECTV
  3. 3. About Symbius <ul><li>Since 1999, Symbius has established a proven consulting track record of helping organizations achieve higher performance through supply chain partnerships and operational efficiency. We focus on light manufacturing, logistics-centric, and construction organizations in the $100 million to $1 billion revenue range. </li></ul><ul><li>We specialize in leading SC design and change in organizations that are experiencing reduced revenue, increased performance demands, rapid growth, restructuring or industry consolidation. Our focus is Private Equity sponsored organizations where EBITDA or cashflow velocity is a priority. </li></ul><ul><li>Symbius currently consists of eight core professionals supported by 10+ associates in supply chain re-design and improvement. </li></ul>Industry Verticals Of Expertise CPG Utilities Financial or Logistics Services Contract Manufacturers Homebuilders Paper Products Industrial Distribution or Light Manufacturing Aerospace/Defense
  4. 4. Our Consulting Team <ul><li>Luis Solis – President/Managing Partner </li></ul><ul><ul><li>24 years experience; Stanford JD/MBA; GE Capital; Private Equity; Operating CEO record </li></ul></ul><ul><li>Matt Sanders – Associate Partner </li></ul><ul><ul><li>10 years experience; MIT MBA; Princeton BA </li></ul></ul><ul><li>Dana Barton – Associate Partner </li></ul><ul><ul><li>35 years experience; Raytheon; Pulte Homes; Lennar Homes; Purdue BS; Marquette MBA </li></ul></ul><ul><li>Andrew (Andy) Levien – Associate Partner </li></ul><ul><ul><li>30+ years technology/engineered manufacturing; Emerson Process Management; Norgren; UC Berkeley BS/MS Engineering </li></ul></ul><ul><li>Ed Lukes – Associate Partner </li></ul><ul><ul><li>35 years experience; Andersen/Accenture; McKinsey </li></ul></ul><ul><li>Alex Vieira – Senior Consultant </li></ul><ul><ul><li>20 years experience; AT Kearney; PwC; Cal State MBA; MIT BA; </li></ul></ul><ul><li>Charlie Maynard – Senior Consultant </li></ul><ul><ul><li>22 years experience; Perot Systems; Denali; Cogent Consulting; UC Berkeley </li></ul></ul><ul><li>Ethan Parker – Associate </li></ul><ul><li>10+ professional associates in procurement, information systems, logistics and change management specific to Supply Chain </li></ul><ul><li>Chairman – Richard H. Bard (private equity investor; BardCapital; Federal Reserve Chairman) </li></ul><ul><li>Advisor/Board – Graham Sharman (retired, McKinsey & Co.) </li></ul>
  5. 5. Supply Chain Leverage <ul><li>Supply chain efficiency is a Private Equity Sponsor’s secret weapon before, during, and at-exit of investments to better manage EBITDA and optimize enterprise valuation in the face of: </li></ul><ul><li>demand and customer segment volatility </li></ul><ul><li>need for new products, channels or markets </li></ul><ul><li>shift in raw material access, prices or sources </li></ul><ul><li>opportunities for waste/cost reductions </li></ul><ul><li>consolidation/standardization gains </li></ul><ul><li>the question of in-source, out-source or co-source operations </li></ul><ul><li>an imbalance in supply chain expertise/skills to deliver needed ROI </li></ul><ul><li>opportunities for network efficiency in inventory management, fulfillment or maintenance/service operations </li></ul><ul><li>Many PE Sponsors know that supply chain improvement is more than incremental EBITDA; more likely, it is the key to investment success or even survival in turbulent global markets. </li></ul>5
  6. 6. Our SC Initiatives Drive ~2-10% Total Cost Improvement Cost of Goods Sold SG & A Capital Total Enterprise Financing Symbius’ Savings Focus <ul><li>Manufacturing materials </li></ul><ul><li>Shop materials </li></ul><ul><li>Freight & logistics </li></ul><ul><li>Material management staff </li></ul><ul><li>Indirect materials </li></ul><ul><li>Advertising </li></ul><ul><li>Services </li></ul><ul><li>Travel </li></ul><ul><li>Purchasing staff </li></ul>Capital assets Inventory carrying costs & liquidated inventory
  7. 7. Our Capabilities & Clients Informatics and Organization <ul><li>Procurement </li></ul><ul><li>Strategic sourcing </li></ul><ul><li>SRM systems </li></ul><ul><li>VMI/Inventory </li></ul><ul><li>optimization </li></ul><ul><li>Outsourcing </li></ul><ul><li>Logistics/services </li></ul><ul><li>3PL/4PL </li></ul><ul><li>Procurement BPO </li></ul><ul><li>Customer Service </li></ul><ul><li>Demand segments </li></ul><ul><li>Service levels/models </li></ul><ul><li>CRM/planning systems </li></ul><ul><li>Distribution </li></ul><ul><li>Logistics </li></ul><ul><li>Warehousing </li></ul><ul><li>Channels </li></ul><ul><li>Execution systems </li></ul><ul><li>Performance/ </li></ul><ul><li>Culture/Systems </li></ul><ul><li>PMO </li></ul><ul><li>Transformation </li></ul><ul><li>Dashboards </li></ul><ul><li>Collaboration systems </li></ul>
  8. 8. From Quick Fix to New Supply Chain Models Months to Achieve Results 0 6 12 18 … 24+
  9. 9. Case Studies in Brief Solution Definition Client Result New SC Model (Revenue lift) Industry leading model to anticipate/ respond to customer trends & differentiate <ul><li>New B2B solution for enterprise accounts to bundle design, fulfillment and technology services </li></ul><ul><li>10-15% revenue potential or >$100MM = $15MM gains </li></ul>Standardization (SC optimization; margin lift) Deploy common processes/ best practices/ systems platform <ul><li>1Standard spans 15 divisions with a common SC platform for home construction </li></ul><ul><li>$50MM+ cash-flow created </li></ul>Efficiency (Asset/cost/waste reduction) Design and implement new way of working in one business process area <ul><li>Apply SAP/SC to Wal-Mart inbound direct-to-store pipeline </li></ul><ul><li>Surged volumes; supported M&A transaction and high ROI </li></ul>Quick Fix ( Risk management) Immediately fix one channel, product line or SBU discrete problem <ul><li>6-month waste reduction in $100MM distribution business </li></ul><ul><li>~25% EBITDA lift or ~ $25MM </li></ul>
  10. 10. Transformational Tools <ul><li>Our clients benefit most from speed, visibility, agility and accountability across the enterprise and with customers/vendors. Symbius accelerates Cash flow Improvement/Change with three robust Web2.0 tools to enable strategic decision-making. </li></ul>Supply Chain Scoreboard For Performance Management <ul><li>manager and sponsor visibility of initiative status/progress with linkage to EBITDA/ROI objectives </li></ul>Shared Teamspace for Brainstorming <ul><li>structured virtual war-room to promote ideation and problem solving in distributed organizations (anytime/anywhere work) </li></ul>Supply Chain Modeling/Simulation <ul><li>for consolidation strategies or complex global supply chains, agent-based modeling enables crisp decision-making in the face of changing global conditions </li></ul>
  11. 11. Strategic Incrementalism <ul><li>Traditional Approach: </li></ul><ul><li>The big idea </li></ul><ul><ul><li> </li></ul></ul><ul><li>The impulsive big acquisition, systems purchase or model change </li></ul><ul><li>Address the fallout from insufficient planning and weak collaboration </li></ul><ul><li>4. Try again </li></ul>The modern CEO’s number one challenge = CHANGE : how to move the enterprise from A to B fast, at optimal risk levels. Our approach to successful change is called “Strategic Incrementalism.” Our Approach: Strategic Incrementalism solves the weaknesses of traditional ways, and adds speed and certainty of results, by taking careful steps toward an end game with Revenue, Margin or EBITDA goals A. Current State B: End-Game Phase I Phase II Phase III Phase IV Time ROI Capture + Change Management Collaboration Processes
  12. 12. Partnership/Value Pricing <ul><li>We price to build long-term partnerships. </li></ul><ul><li>Our clients hire us for expertise, judgment, and results -in-a-snap that often would cost much more if hired on a permanent, full-time basis. </li></ul><ul><ul><li>Symbius’ fee structure builds in a 30-40% discount for comparable work performed by bulge bracket strategy firms </li></ul></ul><ul><li>Model: largely fixed price/fixed time team pricing (‘same side of table’ mindset) with no surprises. </li></ul><ul><li>Incentives: flexible models for special situations: </li></ul><ul><ul><li>% value sharing to Symbius w/ small retainer </li></ul></ul><ul><ul><li>Discount power w/ upside bonus </li></ul></ul><ul><ul><li>Custom due diligence pricing </li></ul></ul><ul><li>Staffing Model: </li></ul><ul><li>Phase I: Partner plus </li></ul><ul><li>2-3 team consultants; </li></ul><ul><li>substantial on-premise </li></ul><ul><li>work; weekly status </li></ul><ul><li>updates; leverage </li></ul><ul><li>Symbius Scoreboard TM </li></ul><ul><li>for transparency/results </li></ul><ul><li>Phase II – IV: nimble teams of 1-2 consultants to deliver value/EBITDA in 3-6 month stages </li></ul><ul><li>Optional: persistent Program Management Officer (PMO) to integrate </li></ul><ul><li>teams, communications and </li></ul><ul><li>deliverables/report outs </li></ul>
  13. 13. More information: Luis Solis President/Managing Partner [email_address] 720.839.5068 fax: 303.362.5723 skype: lfsolis 3981 Promontory Court, Boulder, CO. 80304

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