We cut out distributors and permanently increase EBITDA margins
The Problem with the Status Quo
When was the last time that you re-evaluated the costs of raw materials, inputs, supplies, or any other products heavily utilized by your portfolio companies?
A huge portion of raw materials, inputs and products purchased by most businesses are branded products purchased through distributors, who together capture up to 50% of the retail price in the value chain.
Small quantities or infrequent product purchases are a perfect fit for the distributor model.
Once an operation is at scale, the status quo of never looking for an alternative can cost significant profit potential.
Representative Value Chain
Our Solution to the Broken Status Quo
It’s time to reevaluate the costs of your raw materials, inputs and supplies.
Array Consulting specializes in savings PE portfolio companies money
Globally sourcing products of equal quality as those being sold by legacy brands is highly achievable – this is the core tenet of Managed Direct Sourcing (MDS).
We strip away the brand name and distributor, get you the same quality you’ve come to expect from existing sources while saving you up to 50% on goods you’re already buying.
How Array Consulting cuts out distributors, increasing EBITDA margins
$1.50/lb savings x 25 lbs/pool per year x 10,000 pools = $375,000/year saved
Pool Servicing Company - Chlorine Tablet Example
$37/roll savings x 2,000 rolls/year = $74,000/year saved
HVAC Portfolio Company Example – Aluminum Foil Tape
Who We Are
Co-Founders Aaron Apple and Grant Walsh have manufactured 400+ unique products and sold $75m+ worth of goods through B2C & B2B channels.
Boring products, sexy products - we do it all!
Sourcing & vetting factories
Global & Domestic Logistics
Sampling & Customization
Why Work with Us? We Get the Math!
What we bring to the table
Significant cost savings and higher margins
Direct access to our in-network OEM manufacturers around the world – no branding or distributor markup
Same or better quality as the legacy brands
We specifically target working with PE sponsors, as they get the math that companies often don’t
On $1MM of yearly purchases shifted to Array, we cut costs by 25% = $250,000 of incremental yearly EBITDA
At 4-12x multiples, that translates into $1MM-$3MM of enterprise value on exit
For 3 portfolio companies, that leads to $3MM-9MM of realized enterprise value
Our Core Proficiencies
We have expertise across a wide array of raw materials and product types. A snapshot of our proficiencies includes
Nearly All Plastics, Silicones, and Rubbers
Tools, Hardware and Stamped Steel
Hazmat Materials, Electronics, Batteries, etc.
Chemicals - Cleaning Solutions, Lubricants, Paints, etc.
Toys and Games
Packaging - Boxes, Bags, Containers, etc.)
Textiles, Cutting and Sewing, Apparel
The 5 Steps to Work Together
Sign mutual NDA and send us specs on the top 5 raw materials/inputs/products bought from brands/distributors each year
We reach out to our 200+ factory network, as well as searching for new factories that might be a potential fit. We bring back 90% of our quotes within 10 days.
After mutually agreeing on pricing and terms, we conduct a sample process to assure you are happy with the quality of the products.
Guaranteed Landed Price
We provide you with a guaranteed landed price for your products that will not change due to inflation, shipping rates, or currency fluctuation.
Signing a Contract
We sign a contract guaranteeing delivery dates, locations, quantities and prices - no need to handle any further logistics on your end.
Let's Take a Look at Your Hard Costs
Request a free review and estimate of the hard costs in your portfolio companies.
We will produce quotes showing how much money you can save by manufacturing and purchasing these products directly from the factory, without the brand name or the distributor.
Get in touch with your query and we’ll get back to you.