After acquiring a major contact lens distributor, this private equity firm wanted to complete a post-acquisition assessment to identify improvement opportunities.
A private equity firm based in the U.S. acquired a major contact lens distributor. The company is a leader in the industry with over 40% market share and distributes all four major manufacturers to more than 20,000 doctors throughout North America. With four distribution centers (DCs) in the U.S., the company was targeting growth opportunities in adjacent product categories such as frames, hard lenses, and retail distribution chains.
- The private equity firm wanted an outside assessment of the company’s performance with its current business process to identify opportunities to lower cost and improve overall operational performance.
- As part of the operational assessment, a review of the distribution network capacity was needed to answer questions about the logistics network, capacity and physical locations, and its ability to handle new product categories and anticipated growth in volume.
- In order to quantify the impact on selected elements of the growth initiatives, the company needed to determine if the manufacturers would benefit from having the distributor deliver direct to doctors’ offices.
Tompkins International's Role
- Tompkins analyzed the supply chain, including product flows, inventory plan, and DC layout/processes.
- Tompkins also identified potential savings, confirmed capacity enhancements to achieve operational excellence, and ensured the ability to effectively support planned growth initiatives.
- Through an iterative process, operating and financial data were analyzed and key findings were presented to the client. The data was further validated and summarized in a final results report used by the client to develop capital investment and operating policies.