Partners International

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U.S. Logistics - Engaged by the largest U.S. provider of residential solar power components and financial services, Big Sky Partners International was charged with analyzing the cost and effectiveness of the company’s inventory management and distribution operations. Solar system components, which were sourced from Germany and Asia, numbered over 225,000 individual units and were under the logistics management of an outsourced 3PL located in a California-based warehouse. Orders were picked from this facility and transported throughout the country for door deliveries. Our analysis determined that order inaccuracies exceeded 30%, on-time service was less than 65%, and EDI order data transmissions failed at a rate of 9 messages per 24 hour period. Additionally, through competitive analysis we identified that our client was being charged well above premium rate levels by their 3PL. 

 

THE SOLUTION: Big Sky identified and vetted a Tier-1 3PL to replace the incumbent and directed the development of a new data management solutions. 

 

THE RESULT: Big Sky remained on-sight for over a 90-day period to oversee the implementation of the new service provider. Order integrity and inventory management attained a Six Sigma designation. On-time deliveries held a constant 99.6% performance rating, and our client realized a projected $1.25 million annualized savings on their logistics spend.  

CASE STUDIES - SUCCESS STORIES

Global Supply Chain – A global leader in specialty papers and packaging engaged Big Sky Partners International to evaluate and re-engineer their intercontinental transportation network. Historically, our client used air cargo transportation to move their Asia sourced product to a single, DC in the Pacific Northwest. After kitting in this facility, orders were fulfilled and distributed throughout North America.

THE SOLUTION: Big Sky used route optimization modeling to develop a new freight flow procurement and distribution network.

THE RESULT: Big Sky initiated a modal shift from air freight to a combination of ocean carriage for the international traffic lanes, and intermodal truck/rail service, to complete the North American distribution. Big Sky also managed the development of a secondary, east coast distribution center. Despite the slightly longer over-water transit time, over-all on time delivery performance met our client’s customers’ requirements. The net effect to both our client and its customers’ landed cost of goods was a 60% annual reduction in transportation expenses.

 

 

 

Global Supply Chain – A global leader in specialty papers and packaging engaged Big Sky Partners International to evaluate and re-engineer their intercontinental transportation network. Historically, our client used air cargo transportation to move their Asia sourced product to a single, DC in the Pacific Northwest. After kitting in this facility, orders were fulfilled and distributed throughout North America. 

 

THE SOLUTION: Big Sky used route optimization modeling to develop a new freight flow procurement and distribution network. 

 

THE RESULT: Big Sky initiated a modal shift from air freight to a combination of ocean carriage for the international traffic lanes, and intermodal truck/rail service, to complete the North American distribution. Big Sky also managed the development of a secondary, east coast distribution center. Despite the slightly longer over-water transit time, over-all on time delivery performance met our client’s customers’ requirements. The net effect to both our client and its customers was a significant reduction in the landed cost of goods attributed primarily to a 60% annual reduction in transportation expenses. 

 

 

Market Positioning – RecapitalizationBig Sky Partners International was retained to develop a strategic business plan for the acquisition, and subsequent development of a NEWCO, of an international cold chain technology development and marketing company. The objective of this initiative was to create a new U.S. based enterprise, capitalizing on the North American market, and generating a profitable and substantial return for its potential new shareholders. 

 

THE SOLUTION: The successfully completed Plan produced a comprehensive sales and marketing expansion initiative, alternative I.T. development path and sourcing location, new high margin based pricing model, and a complete 5-year pro forma financial projection. The Plan projected an 18 month cash flow breakeven and a 7X valuation multiple in the Company’s fifth year of operation. 

 

THE RESULT: Through the development of the NEWCO strategic plan, Big Sky and its affiliates were able to arrive at a market driven enterprise valuation. We then created and negotiated a Letter of Intent for the purchase of the Company, generated the deal terms and Offering Memorandum. We developed a new financial capitalization table for NEWCO, and successfully identified and secured the required capital investor syndicate.