Global Footprint Optimization Post Major Acquisition – $8B CPG Company
Company profile
A global manufacturing enterprise formed through the acquisition of an equally large international manufacturer, with operations across North America, Central America, South America, and the Caribbean.
Business challenge
Post-acquisition, the combined company inherited two fully built global manufacturing footprints, each previously optimized independently, leading to:
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Redundant manufacturing capacity
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Overlapping country and regional facilities
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Increased fixed costs and operational complexity
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Heightened risk of customer disruption during consolidation
This footprint presented major consolidation opportunities but required careful sequencing to avoid service, quality, or supply chain disruptions, while complying with local laws and regulations.
Approach
A cross-functional global team designed and executed a data-driven footprint optimization strategy focused on:
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Capacity and capability analysis across all sites
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Alignment of regional demand with customer proximity
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Labor, logistics, and cost-to-serve modeling
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Risk-based transition planning to protect customers
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Phased execution with clear governance and milestones
Operational continuity was prioritized, ensuring each consolidation move was executable without negative customer impact.
Optimized footprint (post-consolidation)
Following execution, the global footprint was streamlined to:
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United States: 3 facilities (from 4)
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Mexico: 1 facility (from 3)
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El Salvador: 1 facility (from 2)
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Honduras: 1 facility (unchanged)
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Colombia: 1 facility (from 2)
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Dominican Republic: 1 facility (from 2)
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Brazil: 1 facility (from 2)
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Peru: 1 facility (unchanged)
Results and impact
Operational outcomes
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45% reduction in combined headcount
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Significant reduction in fixed manufacturing overhead
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30% increase in revenue per employee
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Simplified regional operations and management structure
Customer impact
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Zero customer service interruptions
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No disruption to delivery, quality, or supply commitments
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Customer confidence maintained throughout the transition
Strategic benefits
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Leaner, more resilient global footprint
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Improved cost competitiveness
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Scalable platform for future growth and integration
This engagement illustrates how disciplined footprint optimization—anchored in strong governance, cross-functional alignment, and customer-first execution—can deliver substantial cost and complexity reduction without sacrificing service.