Case Study: a premium kitchen appliance manufacturer improves gross margin and EBITDA with L.E.K. Consulting's supply chain transformation

a premium kitchen appliance manufacturer improves gross margin by 10 ppt with L.E.K. Consulting

The premium kitchen appliance manufacturer was facing declining demand and a negative EBITDA margin in its largest unit. To address this, they engaged LEK Consulting for a comprehensive end-to-end supply chain assessment aimed at reducing costs and improving product margins as part of a broader strategy refresh.

LEK Consulting implemented a two-phase approach, beginning with a baseline analysis and opportunity sizing, followed by category strategy development. This process identified significant material savings and optimized the supply base. The solution delivered by LEK Consulting equipped the manufacturer with a roadmap for implementation, resulting in a validated 10 percentage point gross margin improvement and a detailed plan to achieve a 20 percentage point EBITDA improvement over three years.