Industry Success Stories

Manufacturing and Distribution
Your business success requires quality, reliability, and margin management. Your Accounting & Finance, Risk & Compliance, and Business & Technology functions should help you manage and improve your operations to drive profitability.
-
Advisory
Assessing and recommending an IT strategy that informs business decision-makers
Manufacturing & Distribution | Aventine Hill Partners A privately held manufacturer was not satisfied that it was achieving the best results from its investments in IT. It sought assistance to create a three-year roadmap to guide its direction and help its management team be more confident in making IT investment decisions.
Our Solution
An Aventine Hill Partners’ CIO Advisor supported by one of our IT Consultants was engaged to perform a thorough assessment of where the business was heading, options for how IT could support the business, recommend a three year road map, and recommend an IT organization design to support the roadmap.
This top-to-bottom review utilized a number of services from the Aventine Hill Partners’ IT Strategy playbook.
- Interview tools unique to Aventine Hill Partners were utilized to measure the level of strategic and cultural alignment between business leaders and the IT organization and services. Discussion of the results drove a more clear articulation of the strategic business requirements that should guide IT priorities.
- The software application portfolio was assessed to identify opportunities, risks, costs, and trade-offs that should guide specific IT investments and savings opportunities. A key goal was to identify the urgent and highest value opportunities that should be prioritized earlier in the three-year roadmap.
- The IT organization and services were reviewed and assessed on a capability maturity model scale. More importantly, target maturity levels at one and three years were set for major IT functions.
- The IT budget was analyzed over a five year period to articulate how past decisions had driven current costs; and how cost should be weighted as a factor in making investment decisions for the next three years.
Results
As a result of our CIO Advisory services, the client received a scenario-based three-year roadmap where they had flexibility to slow down or accelerate their investment levels based on events. The management team felt more confident in managing IT’s role within the organization and the type of leaders needed in its IT function. Aventine Hill Partners assisted in selecting leaders for new IT roles in the recommended IT organization design. A year later, the client provided feedback that they continued to feel confident in how IT was operating as part of the company.
Learn more about our IT Strategy / Business Alignment services.
Defining an ERP roadmap to enable fast growth
Manufacturing & Distribution | Aventine Hill Partners A fast growing manufacturer of oilfield products had outgrown its ERP system. Production planning was manual and had a very short time horizon. Inventory accuracy could not be maintained real-time. Senior leadership at the company were concerned that growth and profitability could not be sustained without new technology.
Our Solution
A CIO Advisor from Aventine Hill Partners was engaged to assess:
- Where the company was headed strategically and tactically
- What major gaps existed with their current ERP
- What options would fit their business model and strategy.
Our CIO Advisor next led the ERP selection process. Collaboration with subject matter experts who would be super-users for the new system resulted in a set of high-level requirements. These were taken to market with multiple vendors with a goal of not just identifying the best ERP functionality at optimal cost but which vendor would be the best partner from an industry, culture, and support perspective. It was important that risks be minimized so that fast growth could continue and a stronger relationship with the new vendor be established to avoid a repetition of prior challenges. Vendor proposals were analyzed and customer references were checked, including locating independent references from the CIO Advisor’s peer network. The Advisor then prepared an objective analysis that provided two viable options for Senior Leadership to choose from.
After the company selected a SaaS solution, the CIO Advisor and the company determined that a full time ERP Manager would be needed to lead the project and become the administrator for the solution. The CIO Advisor drafted a job description and Aventine Hill's Executive Search function was utilized to find candidates who would be a great skills and cultural fit.
After the ERP Manager was successfully onboarded, the CIO Advisor participated on the ERP Project Steering Team, offering advice on planning and execution best practices, and assisting in resolving complex issues.
Results
Thanks to the support of Aventine Hill Partners’ CIO Advisory services, Senior Leadership for the company was confident in making an informed selection of a system that fully enables their operations and growth while meeting their cost goals. They made a successful hire for the ERP Manager role and ultimately had a successful go-live. Learn more about our ERP Selection and Optimization capabilities.
Providing a part-time CFO to achieve unique value
A small, closely-held U.S. company with manufacturing operations in China received a private equity investment to enable growth. To meet the increased accounting and finance requirements, the company needed an experienced CFO but did not want to invest in a full-time C-level employee. The CEO came to Aventine Hill Partners for help.
OUR SOLUTION
Through our CFO Advisory services, we provided an experienced CFO on a part-time consulting basis. The Advisor had extensive experience in US GAAP, IFRS, and Chinese accounting, and is a CPA with an audit and controls background. This unique skillset allowed the Advisor to quickly bring the company up to reporting and control standards consistent with the PE Agreement.
While small, the business was complex. Issues to be properly managed and reported included a non-controlling interest, A/R factoring, foreign exchange exposure, inter-company accounting, consolidation accounting, elimination accounting, international cash management, and tax planning. The CFO Advisor worked with company accountants in the U.S. and China to review existing internal controls for financial accounts and processes. Because of the complexity, a number of procedures and accounting decisions needed modification to make them more accurate and simple. Training was provided to assure the controls were implemented correctly and the financial reporting accuracy would be as required.
The addition of the PE investment also resulted in evolving a more formal Board structure. Using experience in the industry, the CFO Advisor introduced the CEO to Board member candidates who could both advise the business and introduce the company to potential customers. The Advisor improved the financial reporting and analysis packages for the Board to facilitate better alignment among the majority owners and the PE firm.
RESULTS
With help and leadership from Aventine Hill Partners, this company was able to successfully meet the PE Agreement requirements in a timely and quality manner. And, it has the leadership and expertise of a highly experienced CFO on a part-time basis, creating ongoing unique value in a cost effective way. Learn more about our CFO Advisory services.
-
Consulting
Assessing technology options for optimum performance
Manufacturing & Distribution | Aventine Hill Partners A manufacturer with more than 1500 employees was running payroll internally on an aging software application that was scheduled to lose support from the vendor. The company was considering upgrading the software but wanted to assess other options. Aventine Hill Partners was engaged to assist the HR, CFO, and IT organizations in evaluating alternatives and selecting the best path forward.
Our Solution
Our CIO Advisor laid out a plan that created three distinct decisions for the client to make to assure that the best outcome could be achieved. First, was to define a longer term Vision for how the company desired its major HR processes to produce value for the company. These were prioritized so that options that did not meet minimum requirements could be quickly eliminated.
Next, a high-level requirements package was created and shared with vendors who had software or services to support the HR/Payroll Vision. The mix of vendors included HR/Payroll outsource companies, the company’s current ERP vendor, best-of-breed on-premise software; and best-of-breed software-as-a-service (SaaS). Collaborative workshops were conducted with the vendors with a goal of determining which model (in-source/out-source, on-premise/SaaS) was the best fit. Selecting the operating model was the second critical decision.
The last decision consisted of evaluating the best vendor to support the long-term Vision based on the desired operating model. The key factors were the specific capabilities of the solution, the vendor’s stability, the ongoing support model, the implementation approach, and of course, cost. Two acceptable options were identified and analyzed. As expected, each option had strengths and weaknesses in terms of meeting specific details of the long term Vision, resulting in slightly different roadmaps and ultimate value. But, with two viable roadmaps articulated, the client was able to negotiate confidently and aggressively for the best pricing on each roadmap.
Results
The client was able to make a fully-informed decision on which HR/Payroll roadmap had the better cost/benefit impact. And, because of the facilitated process used by our CIO Advisor, there was buy-in from all major stakeholders on the choice. Learn more about our Process and Technology Roadmap capabilities.
Creating ways for more efficient financial reporting
Manufacturing & Distribution | Aventine Hill Partners Changes in company structure can have significant effects on how it generates financial statements. When a large, global manufacturing company restructured from 8 to 20 companies, it turned to Aventine Hill Partners to help make the corresponding changes to its financial reporting.
Our Solution
We provided an accounting professional who was an expert in preparing the complex consolidation of financial reporting data. After defining and implementing changes to create the new consolidation structure, our consultant updated the processes and procedures the company used to generate its financial statements. The company’s existing staff were then trained on preparing the reports on an ongoing basis.
Results
Thanks to assistance from Aventine Hill Partners, this company was able to perform new, complex financial reporting tasks without hiring additional employees. Learn more about our SEC, Financial, and Management Reporting support.
Analyzing the unique needs of a company and choosing the right ERP system
A privately owned manufacturer of custom portable buildings was seeking an ERP system to replace QuickBooks and Excel spreadsheets. The business is operated as a hybrid of construction and manufacturing disciplines and a previous attempt to implement a manufacturing ERP had failed. The new CFO and IT leadership for the company sought assistance from Aventine Hill to select a different ERP that could be successfully implemented.
Our Solution
Because the company had many manual processes and new leaders in some critical functions, it was decided that certain key processes would be flowcharted as part of the software selection process.
- A CIO Advisor was deployed part-time to lead the software selection process and vendor negotiations.
- A Business Process Consultant was deployed to document "Level 1" diagrams for the business units and "Level 2" swim-lane flowcharts for key business functions. The flowcharting work was time-boxed to provide cost certainty for the company.
The CIO Advisor and Business Process Consultant initially did a two-day walk-through of the business, observing the life-cycle from sales through production, installation, servicing, and accounting. This resulted in the first draft of the Level 1 diagrams. The Business Process Consultant then conducted detail interviews to develop the Level 2 flowcharts over a period of a few weeks. Key pain points and requirements for the business were also captured.
As the flowcharting neared completion, the CIO Advisor conducted a workshop with senior leaders from all key functions to align on a Vision for how the company wanted to utilize an ERP. Strategic decisions were made regarding how to balance the company's desire to plan production and manage revenue and costs similar to a construction company while seeking certain purchasing and labor efficiencies more similar to manufacturing shop floor environments. The company also decided to seek a solution with an integrated CRM to replace Salesforce.com and to change its time collection process.
The workshop decisions were formalized into a presentation and shared with software vendors to identify which systems would be formally evaluated. Eight software vendors were spoken to about the company's needs and budget. Three vendors were excluded as not a good fit; two others were excluded based on the expected cost of licensing and implementation.
For the evaluation, the three remaining vendors were provided a desired agenda for an on-site workshop and customized software demonstration. The goals were to see how easy it was for each vendor to prepare for the workshop, and to allow them to specifically demonstrate how their software would meet the company's needs. The vendors were told not to do "canned" demos.
After the workshops, each vendor provided initial quotes for software licensing and the implementation. There were material differences for certain critical functionality and the proposed costs for the vendors. Detailed discussions were continued with two vendors to fine-tune their proposed scope, implementation approach, estimated hours, and rates.
A detailed report was prepared to compare and contrast the final two options. A workshop was conducted with company senior leadership to debate the reasons to choose one system over the other. Having two acceptable choices provided the company with more flexibility in prioritizing the benefits it sought. It also enhanced their negotiating leverage with the vendor the company concluded was the better fit. Specific advice was provided on licensing terms, negotiating strategies, and the statement of work scope.
Results
Thanks to the support of Aventine Hill Partners, senior leadership for the company had the choice of two ERP systems they could be confident would meet their needs at an acceptable budget now and for the future. Negotiating leverage was maintained throughout the selection process. Detailed flowchart information is now available to help guide the implementation workshops. Senior and line management are excited to have a path forward to improve the company. IT leadership is confident that the problems experienced in the prior ERP implementation will be avoided. Learn more about our ERP Selection and Optimization capabilities.
Creating efficient budget processes
Manufacturing & Distribution | Aventine Hill Partners Creating and maintaining an effective budget process can be challenging without the right expertise. When a privately held manufacturing company found themselves in need of improvements to their process, they turned to Aventine Hill Partners and our financial planning support for help.
Our Solution
Using extensive knowledge of the budget, our accounting and finance consultant implemented a new budget module that the company had access to and integrated with their existing financial system. The module provided automation that was not available before so the budget process needed adjustment to match the full capabilities of the software. Our consultant identified and recommended improvements that resulted in a more efficient and manageable budget process. Once the software and process were in place, we assisted the company with their first budget using the new system to ensure that it ran smoothly.
Results
Thanks to the expertise of Aventine Hill Partners, this manufacturer was able to put in place a solution allowing them to more efficiently and effectively plan and budget for the future. Learn more about our Financial Analysis, Planning, and Modeling capabilities.
-
Project and Interim Solutions
Helping a company perform accounting for a large divestiture
A privately held manufacturer with multiple operating units and global operations was disposing of approximately half its business to a larger, publicly held corporation. The accounting and finance team was not staffed to support and did not have expertise in executing a large divestiture. The company came to Aventine Hill Partners for help.
Our Solution
We provided a team consisting of a CFO Advisor and two accounting and finance consultants, all of whom were experienced with public company financial reporting and audit requirements that are part of due diligence for this type of strategic transaction. Issues that made the divesture complex were that the company utilized multiple accounting systems and there were prior acquisitions that required purchase accounting adjustments to prepare the financials for divestiture.
Our team became both best practice consultants and a “hands-on” extension of the Controller’s department, focusing on the following:
- Completing detailed account analyses and reconciliations for both book and tax purposes.
- Preparing correcting and adjusting journal entries across the multiple accounting platforms.
- Drafting full financial statements with notes for the Controller’s and external auditor’s review.
- Responding to external auditor requests and inquiries.
- Providing process improvement recommendations.
Inventory required special attention because this company had parts that were not on published price lists. The auditors wanted to write-down some inventory. Our analyses proved that this inventory actually had increased in value, enhancing the transaction value of the company’s assets. There was also a case where a large capital asset had been purchased and subsequently broken down for parts. Our analyses validated the company’s recording methodology and amounts.
The support for audits of the assets to be sold went so well that Aventine Hill was engaged to support the audit of the retained businesses. This allowed the Controller’s team to focus on the post-divestiture business.
Results
This private company was able to complete the divestiture transaction successfully, meeting all due diligence requirements of the buyer. Our efforts significantly reduced the workload and stress the CFO’s organization was experiencing. And, our consultants made recommendations and collaborated with the existing accounting and finance team in a way that made them stronger. At the end of the project, the Controller told our team members that the company “could not have done this without you.”
Learn more about our:
Providing quick solutions to financial reporting problems
Manufacturing & Distribution | Aventine Hill Partners Companies do not always have the luxury of working on problems one at a time. This was the case for a global medical device manufacturer who was simultaneously faced with inter-related challenges in Accounting, Tax, Audit, and Vendor Management. They turned to Aventine Hill Partners to provide experienced financial accounting and reporting professionals that had the breadth and depth to tackle these problems quickly.
Our Solution
Applying their expertise in Accounting and Tax, our team provided support for and prepared calculations related to foreign tax credits, earnings and profits, partner tax bases, and month-end tax provision entries. Providing assistance to the Internal Audit Department, exposure analyses and audit testing was completed while minimizing the need for involvement from the company’s Accounting and Tax employees who were busy keeping the business operating.
To address issues with how U.S. customers were tracked for sales tax purposes, our team created a master list of over 15,000 customers, validated that each was still active based on statute requirements for each state, and verified the state sales tax exemption. A history of sales tax exemptions by customer was documented and procedures recommended for ongoing reviews.
Results
With support from Aventine Hill Partners and our available consultants, this global manufacturing company was able to quickly and effectively solve these issues, maintain regulatory compliance, and have procedures in place to avoid potentially costly errors going forward.
Learn more about our:
Providing quick and accurate accounting assistance
Manufacturing & Distribution | Aventine Hill Partners In smaller accounting departments, certain tasks are sometimes not completed because resources are focused on ensuring that critical functions such as payroll, invoicing, bill payments, and collections are properly attended to. When a privately held manufacturing company found themselves behind on account reconciliations and financial reporting needed to generate audited financial statements, they turned to Aventine Hill Partners to help.
Our Solution
We provided the company with a versatile accounting and finance consultant who could take care of all of their needs quickly and accurately. First, our consultant identified that the most critical item to solve was several years of missing balance sheet account reconciliations. After going through financial data going back several years, our consultant reconciled all of the company’s balance sheet accounts up to the current period.
Our consultant then worked directly with the company’s external audit firm to address other smaller, but material issues that were preventing the generation of accurate financial statements. After all issues were cleared up, the financial statement package was assembled which the external auditor reviewed and certified.
Results
Aventine Hill Partners helped clean up multiple accounting issues, generate accurate financial statements, and provide required information to the external auditor. An outcome that could have required assistance from multiple firms was completed quickly and cost effectively by one consultant. Learn more about our Accounting and Finance capabilities.
Providing a helping hand with unique tax challenges
Manufacturing & Distribution | Aventine Hill Partners Having a trusted partner to turn to when specific expertise is needed helps take the pressure off of existing employees when unique challenges arise. When a privately held pharmaceutical company needed to perform some tax analysis outside its normal capability, they turned to Aventine Hill Partners for help.
Our Solution
We provided an experienced tax reporting professional who assisted this company in two key areas. First, our consultant successfully assisted with rolling forward tax bases for four partnerships for two years. These tax bases were complicated by legal entity structures, currency conversions, and acquisitions with contingent payment terms. Next, our consultant updated complicated calculations that tied the tax bases to quarterly tax assessments and partnership distribution calculations.
Results
Using our available talent and expertise, Aventine Hill Partners was able to help this client successfully tackle these challenges in a timely manner without putting strain on existing resources. Learn more about our Accounting and Finance capabilities.