Engagement Detail

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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

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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.

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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

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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

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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​