Alvarez & Marsal Resolved Operational Issues for China Manufacturing Plant
Alvarez & Marsal (A&M) assisted a division of a U.S. multinational company in China facing severe operational challenges, including strikes, fraud allegations, and customs compliance issues.
Management consulting firm Alvarez & Marsal (A&M) has helped a division of a U.S.-based multinational corporation resolve significant operational and financial challenges at its manufacturing plant in China. The firm deployed a rapid, fact-based intervention, including interim leadership and operational process restructuring.
The situation involved a manufacturing facility for a $1.5 billion revenue company that had been severely impacted by employee strikes, allegations of fraud, sharp declines in operational and financial performance, and customs compliance concerns. The company was also experiencing decreased customer satisfaction and high employee attrition.
A&M's team provided immediate on-the-ground interim leadership, including a Chief Operating Officer (COO), to stabilize the business and drive transformation. The strike was resolved within three days, and new systems and initiatives were implemented.
Through these efforts, the company restored business stability and initiated a new period of growth. Delivery times improved, inventory levels decreased, and customer trust was re-established. Within five months, daily operations were successfully transitioned to a new permanent management team.