IT Turnaround Drives 40% Cost Reduction
The Challenge
A PE-backed manufacturing company was bleeding cash through IT inefficiency. They had 47 different software vendors, outdated ERP, no IT governance, and were spending 8% of revenue on technology with minimal business value. The previous IT director had left, and they needed immediate expert intervention.
Our Approach
Over 12 months at 20 hours/week, we conducted a comprehensive vendor audit and consolidated from 47 to 18 vendors. We implemented IT governance frameworks, negotiated enterprise agreements, modernized the ERP system, and established an IT steering committee with business stakeholders.
The Outcome
IT costs reduced from 8% to 4.8% of revenue, saving $3.8M annually. System uptime improved from 92% to 99.5%. The company successfully exited to a strategic buyer at a premium valuation, with IT transformation cited as a key value driver.
