Supported a global packaging company in optimising and future proofing their paper supply network
Enabled the client to critically assess the strategic value of its manufacturing assets, reallocate CAPEX spend and identify acquisition targets to ensure security of supply over a 7-year time horizon.
Provided strategic recommendations on mill investments, divestments and external supply partnerships.
Service: Growth Strategy; Investment Decision Support
Sector: Paper & Packaging
Background
The client periodically assesses the security of their supply chain, including reviewing how their vertically integrated assets are used as part of their supply network. The client wanted recommendations on key make/buy/sell decisions for future business planning.
The client needed to optimise their supply options, prioritise CAPEX spend, ensure sufficient paper supply to meet future packaging growth, and progress towards their sustainability goals.
Approach
We assessed the client’s current supply network based on cost competitiveness, technical capabilities and strategic supply role. This involved modelling European market supply and demand 7 years into the future and identifying attractive external supply options.
We developed insights into the strategic significance of internal supply, where and how much investment is required, where strategic relationships will be needed and phasing of key actions. Our recommendations covered capital allocation, make/buy/sell decisions and key external supplier partnerships.
Outcome
We supported investment planning for manufacturing assets and identified areas for CAPEX avoidance.
Our recommended roadmap allowed the client to repurpose CAPEX towards strategic investments, make divestment decisions and consider external growth options.
Outlined pathway to avoid ~£130m CAPEX spend and retain EBITDA targets
Recommendations also resulted in ROACE increase by 1%
Get in touch with Sophie to see how White Space strategy can support your corporate strategy within packaging markets.
