Case Study: a publicly traded manufacturer doubles operating income with BDO

a publicly traded manufacturer doubles operating income and protects $100 million with BDO

A publicly traded manufacturer producing highly engineered products struggled to understand its customer and product profitability, lacking visibility into whether its largest customers were its most profitable. With offshore competition increasing, the $500 million division needed to improve efficiency and prioritize projects. They engaged BDO for management consulting services to address this challenge.

BDO implemented a cost-to-serve model that provided contribution margins by major business segment, increasing visibility for pricing negotiations. This analysis allowed the manufacturer to align resources and focus on high-value initiatives. As a result, the client doubled its operating income, protected more than $100 million of revenue, and achieved a 25% improvement in both cost of labor and on-time delivery. BDO's solution also led to a 20% reduction in product SKUs within one year.