Project Background
A multinational FMCG organisation (turnover $110m) was experiencing significant growth whilst also facing new aggressive competition. Supply chain operations were considered to be outdated and in need of overhaul to support the new business environment. Enchange was invited to lead this change.
An initial ‘Walk Through’ Assessment identified the following:
- Dysfunctional supply chain processes
- Poor systems utilisation
- Low supply chain management competency levels
A programme of Supply Chain ‘Re-engineering’ delivered:
- Supply Chain Processes – redesign & implementation of demand planning, production planning, RP, inventory management, purchasing planning, Sales & Operational Planning (S&OP), customer services, DRP
- ERP System – Optimisation
- Warehousing & Stock Control – Redesign
- SKU Segmentation & Rationalisation
- KPI Implementation
- Supply Chain Organisation Restructuring
- Route to Market (RTM) & Distribution – Distributor rationalisation
Results at the end of Year 1
- Working capital reduced by $1m
- No stock-outs
- Share price doubled
- Savings: $3.6m pa
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