RPM continues to be more efficient in utilizing manufacturing assets to generate cost savings opportunities. The benefits of its center-led procurement initiatives are becoming even more evident in the current inflationary raw material environment. At the conclusion of fiscal year 2021, which ended May 31, 2021, the company exceeded the MAP to Growth program’s targeted run rate of $290 million in annualized savings by $30 million.
Over the course of the three-year initiative, RPM reduced its global manufacturing footprint by 28 facilities, created a lasting culture of manufacturing excellence and continuous improvement, consolidated material spending across its operating companies, negotiated improved payment terms that helped to reduce working capital, consolidated 46 accounting locations, migrated 75% of the organization to one of four group-level ERP platforms and returned $1.1 billion of capital to shareholders. Additional details can be found in the fiscal 2021 fourth-quarter earnings release and conference call.
While RPM officially concluded its MAP to Growth operating improvement plan, the company expects to generate more than $50 million in incremental MAP to Growth savings in fiscal 2022. For the fiscal 2022 second quarter, RPM’s MAP to Growth program provided $19 million in incremental cost savings. RPM’s next step is to leverage the lessons learned from MAP to Growth to chart a course for 2025. Over the next coming months, RPM will be working on a ‘MAP 2.0’ program in conjunction with its operating leaders.