• Case Studies

    Supply Chain Diagnostic and Improvement Program

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The Background

  • A supplier of consumer packaged goods into both retail and commercial markets, with a complex multi-divisional business structure recently moved to an international sourcing platform for a major proportion of their product range
  • Whilst unit cost savings were delivered, the business faced issues with rising supply chain costs and performance decline impacting on customer service
  • Market was served through a complex network of overseas and local suppliers, local and overseas manufacturing, supported by national and multiple regional distribution centres (14)
  • The finished goods product range contained more than 10,000 SKUs

How the Siecap team helped

  • In order to define the long term supply chain strategy, an internal and external business assessment was conducted
  • The detailed assessment included a quantitative cost and transactional analysis, as well as a qualitative review of operations, distribution, customers and market channels
  • The immediate focus was targeted at understanding the voice of the customer and the upstream impact of service needs and  cost requirements
  • Due to the complexity of the global network and national warehouse configuration, inventory strategy and planning were identified as the key performance and working capital improvement drivers

Results

  • Identification of the key business issues and systematic root causes that were impacting on cost and performance
  • Identification of improvement opportunities that were developed to deliver total cost improvements of 16.5% and customer service fill rate level improvements of 8.5%
  • Each improvement opportunity initiative was validated and developed into a transformation execution plan, containing major deliverables & objectives, value statements and work breakdown structures, resourcing and costs

Case Studies