Case Study

Supply chain cost analysis informs food and beverage joint venture on facility expansion

Baker Tilly was engaged to collect and analyze highly sensitive supplier and customer data from three large food and beverage processors, conduct a lead site suitability analysis to determine the preferred location of the production facility, and negotiate and procure credits and incentives project support valued at more than $10M.
Case Study

Supply chain cost analysis informs food and beverage joint venture on facility expansion

Baker Tilly was engaged to collect and analyze highly sensitive supplier and customer data from three large food and beverage processors, conduct a lead site suitability analysis to determine the preferred location of the production facility, and negotiate and procure credits and incentives project support valued at more than $10M.

Client background:

Three billion-dollar food and beverage entities, one of which is a global multinational nutritionals company whose parent group operates in 34 countries.

Client business challenge:

The entities were forming a joint-venture (JV) and wanted to address the production capacity shortfall each company was experiencing due to raw material supply and customer demand. They sought to partner with an advisory firm on the planning and construction of what could potentially be the largest processing facility of its kind in North America.

The Baker Tilly approach:

Baker Tilly was engaged to collect and analyze highly sensitive supplier and customer data from all three entities, conduct a lead site suitability analysis to determine the preferred location of the production facility, and negotiate and procure credits and incentives project support valued at more than $10M. We performed and shared the results of a supply chain cost analysis, coupled with detailed rate studies, utilities capacity analysis and location-based incentives opportunities to all the JV member’s executive teams. The analysis provided the intelligence needed to make a decision and support underwriting for the investment, while protecting the confidentiality of all parties.

The Baker Tilly Impact:

After an 18-month start to finish effort, the entities in the JV agreed on construction of a $500M production facility that would meet the needs of all parties, and scheduled to be operational in the fall of 2020.

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