Client Savings
Customer Savings
Client Savings
For over 35 years, KGM Strategy has helped our Manufacturing, Distribution, & Private Equity Clients dramatically reduce supply chain costs and improve operational efficiencies. Our typical Supply Chain savings have ranged from 18%-23%. The two tables shown below provide case studies of savings for specific companies and across various indirect expense categories. Savings realized produce higher EBITDA – which provides a basis for an increase in a company’s valuation or market cap.
Direct Client Savings – Prior KGM Projects
($ in millions)
Client
Annual Savings
5-Year Savings
Valuation / Market Cap Increase
@ 10X EBITDA
@ 10X EBITDA
Valuation / Market Cap Increase
@ 15X EBITDA
@ 15X EBITDA
1. Global Industrial Co.
$400
$2,000
$4,000
$6,000
2. Construction Equipment Co.
375
1,875
3,750
5,625
3. Water Filtration Co.
350
1,750
3,500
5,250
4. International Mining & Chemical Co.
87
435
870
1,305
5. Largest U.S. Metals Distribution
81
405
810
1,215
6. Fortune 100 Electronics Mfg.
77
385
770
1,155
7. Largest N.A. Telescopic Handler Mfg.
32
160
320
480
8. International Power Tools Mfg.
24
120
240
360
9. International Hand Tools Mfg.
23
115
230
345
10. Fortune 100 Electronics Mfg.
22
110
220
330
11. Largest Mining Equipment Mfg.
21
105
210
315
12. Fortune 100 Building Materials Co.
16
80
160
240
13. Top European Printing Co.
15
75
150
225
14. Divisions of Private Equity Co.
14
70
140
210
15. International Printing Co.
10
50
100
150
Typical Indirect Savings Ranges – Past KGM Initiatives
($ in millions)
Indirect Categories
Savings Range
1. IT Hardware & Consumables
22% to 45%
2. Warehouse Operations and Logistics
18% to 30%
3. Office Supplies
17% to 40%
4. Telemarketing Services
16% to 28%
5. Telecommunications
15% to 45%
6. Small Package Delivery (Ground & Air)
14% to 35%
7. MRO Supplies
12% to 30%
8. Printed Materials, Supplies & Media
11% to 35%
9. Leased Vehicles
12% to 25%
10. Travel (air, rental cars, agencies)
11% to 20%
11. Transportation (LTL)
10% to 35%
12. Packaging Materials & Supplies
9% to 35%
13. IT Software
6% to 12%
14. Temporary Labor
6% to 12%