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EXECUTIVE SUMMARY: Catena’s advisor serving because the interim VP of Transformation quickly rotated efficiency at this high-growth meals producer, bettering yields, throughput, service, and forecasting whereas decreasing prices and unlocking liquidity. The corporate realized $12M in EBITDA impression inside months, reduce forecast error from 39% to 4%, and delivered multimillion-dollar financial savings throughout procurement and logistics. The end result: restored monetary stability and a repeatable working mannequin for sustainable progress.
The Problem: Progress Outpacing Operational & Monetary Functionality
A greater-for-you meals producer that serves main retailers was scaling shortly, however its operational and monetary features weren’t maintaining. After bringing a brand new poultry facility on-line, the group confronted mounting pressures:
- Detrimental adjusted EBITDA and tightening liquidity
- Poultry yields caught within the low-80% vary
- Rising transportation and warehousing prices
- Hundreds of thousands tied up in aged receivables and deductions
- Forecast error at 39%, making planning unreliable
- No built-in plan aligning demand, price, capability, and money
Finally, the non-public fairness board and C-suite wanted a senior chief who might stabilize efficiency, restore monetary readability, and construct a reputable EBITDA enchancment plan.
The Resolution: A Fingers-On Transformation Administration Workplace (TMO)
Catena introduced in an interim VP of Transformation, who designed and led a Transformation Administration Workplace (TMO) that acted as the corporate’s operational “management tower,” integrating efficiency administration, monetary self-discipline, operational enchancment, and industrial alignment. Focus areas included:
Enterprise Visibility & Management Alignment
- Constructed a weekly Run-the-Enterprise dashboard integrating Gross sales, plant efficiency, yields, logistics, A/R, deductions, security, high quality, and money.
- Launched a weekly TMO governance rhythm with clear KPIs, named house owners, and a Key Initiative Overview tied to EBITDA.
- Standardized reporting and storytelling for the non-public fairness board and C-suite.
Money Self-discipline & Working Capital Restoration
- Carried out a 13-week money movement mannequin connecting demand, manufacturing, stock, freight, receivables, payables, and CapEx.
- Led A/R, deductions, and A/P cleanup to launch liquidity and tighten controls.
Operational Effectivity: Yield, Throughput & Value Optimization
- Led cross-functional groups in manufacturing, procurement, operations, and logistics.
- Constructed a structured financial savings roadmap throughout yield, procurement, labor, logistics, and dealing capital.
- Improved line design, throughput, labor utilization, and plant reliability.
Industrial Alignment & Forecast Accuracy Enchancment
- Improved forecasting accuracy, enhancing manufacturing and logistics planning.
- Constructed a consolidated $63M 2025 progress engine on the retailer/SKU degree aligned to plant capability and profitability.
The Profit: Enterprise-Vast Efficiency & Monetary Positive aspects
The TMO delivered enterprise-wide impression, together with:
Yield & Throughput Positive aspects
- Poultry yields improved from low-80% to 100-110%
- Core platform SKUs hit best-to-date yields of 115% of ordinary
- Throughput improved 40%, with 4 labor heads eliminated per shift
- $11.5M EBITDA alternative recognized; $6.6M realized or locked in
Procurement Financial savings & COGS Discount
- $1.1M late-year packaging & ingredient financial savings
- $1.36M 2025 YTD dry items financial savings towards a $4M program
- Mixed: $2.4-2.5M in complete realized financial savings on the way in which to $4M+ annualized
Service Efficiency & Forecast Accuracy
- Forecast error was diminished from 39% to 4%
- Should Arrive by Date (MABD) improved from the low-80% vary to 100%
- Out-of-stocks dropped from 29% to 3-4%
- $26.6M confirmed from the $63M progress pipeline
Transportation & Warehousing Value Reductions
- Shuttle price reduce from $600 to $310 per load ($300k annual financial savings)
- Pallet optimization resulted in $800k in annual T&W financial savings
- West Coast consolidation added $156k in financial savings
- A redesigned retailer freight plan introduced an 18% discount in delivered price, price about $4.9M in projected annual financial savings
Finance, Working Capital & EBITDA Uplift
- Constructed a $19M EBITDA enchancment bridge
- $12M executed or contractually locked inside months
- A/R exterior phrases diminished by 78% collected/in course of
- Deductions diminished $4.8M to $2.1M
- Inactive A/P diminished by 85%
- Weekly web money moved from strongly unfavorable to close breakeven and constructive weeks, bettering end-of-month money by a number of million {dollars} versus early forecasts
General, the engagement delivered quick monetary stability, stronger operational efficiency, and a scalable working rhythm for the management staff and personal fairness board. The TMO construction, reporting, and governance cadence stay in place at present, persevering with to help visibility, accountability, and sustainable EBITDA progress.
Prepared to rework your operations? Catena deploys hands-on trade leaders who deliver construction, alignment, and measurable outcomes shortly. Contact us to get began.
