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Engagement Summary

Benefit: Longer part life and reduction in spare part costs

Industry: Semiconductor Capital Equipment

Engagement Detail

This semiconductor capital equipment firm is now a star financial performer and acknowledged leader in its industry. Lam has dramatically outperformed the comparison group of industry stalwarts Applied Materials, Novellus and KLA-Tencor:

  • Stock up 120% – flat/down for comparison group

  • Revenue growth 75% - versus 25% growth average for comparison group

  • Overwhelming inventory turnover advantage, freeing cash without sacrificing either margin or growth

Superior revenue growth and operational excellence have combined to drive Lam’s performance.  TRG is a key contributor to this sustained performance, working in partnership with Lam over several years to convert operational strategy into bottom line results.  Our joint projects have made a big difference, particularly in Lam’s aftermarket consumable and spare parts business and provide significant green supply chain benefits.

We have increased inventory turnover through:

  • Leveraging supplier’s worldwide presence and distribution capabilities

  • Developing and implementing innovative business models and processes

  • Utilizing web-based information sharing

  • Better allocating spare parts around the globe

We have raised revenue by increasing immediate availability of consumable/spare parts and by reducing customer’s total cost of ownership:

  • Increasing the availability of allocated product by restructuring supply chains and leveraging consolidated purchasing power

  • Better allocating spare parts around the globe

  • Developing and delivering lower-cost alternative consumable parts that remain Lam branded

  • Negotiating better prices and terms with suppliers for traditional parts to reduce cost of ownership while maintaining margin

These profit enhancing initiatives yield carbon footprint benefits through:

  • Reduction in spare parts transportation and storage space 

  • Longer part life resulting in reduced replacement activity​

“TRG's approach and capabilities provided us with rapid product cost reduction results. Even with our ongoing supply chain management efforts, we would not have achieved either the speed or magnitude of benefit TRG was able to deliver. Their expertise and ability to work objectively with all levels of our organization, coupled with hands-on involvement in direct negotiations with our suppliers made them extremely effective."


Jim Goodrich, Sr. Director, Strategic Commodity Management

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