Paper Converter

One of the largest family-owned paper converters in the country, this company produces paper towels, tissues, napkins, and toilet paper in various configurations for both private label and branded sale. The company quickly achieved revenues of $100 million. Recently, increased consolidation both of customers and competitors have contributed to growing margin pressure. Additionally, new competition has created growing stress to invest in up-to-the-minute technology to improve the speed of production and reduce the cost of labor and changeover. Tensions about cash management, cost controls, manufacturing difficulties, and the redesign of the organization led to a rift between the owners, which had negative implications across the organization and depressed efficiency and results. This caused ownership to seek an independent advisor. GH has provided interim management, cash management, and process improvement services, through the application of the firm’s unique LeanSigma methodology
Initially, Getzler Henrich (“GH”) worked with the organization to improve performance by capitalizing on cost reduction/capacity expansion, and operational process improvement opportunities, including, among others, reducing/eliminating rework, improving production line work flow, reducing set-up times, improving production scheduling, reducing inventory levels, and improving warehouse management processes. These efforts identified annual cost savings over $4 million. In an effort to help implement the key operational and financial changes required to improve the company’s profitability, GH assumed the role of Interim Plant Manager, overseeing all manufacturing aspects of the company.
Next, to fully assess the organization and devise a path forward, GH was hired as the Chief Operating Officer, serving on the executive committee with ownership to steer the company and specifically to modify accounting and finance, human resources and staffing, facilities management, IT, and logistics. As COO, GH reviewed the company’s financials and projections – including underlying assumptions and recommended modifications; reviewed the company’s organizational structure, operating strategy and processes, staffing model, pricing process, and sales forecasting, and implemented adjustments; reviewed past and current revenue generation, cost maintenance/reduction and working capital management initiatives for appropriateness and implementation effectiveness/results, and identified measurable Key Performance Indicators to drive the company’s successful performance and profitability. With this work in hand, GH led the effort to craft a strategic plan for the company to return to profitability and to flourish.