Supply Chain Diagnostic and Improvement Program

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

The 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

Our Clients

We have delivered results for distinguished businesses and projects in Australia and abroad.