Value Chain Analysis Produces Huge Gains
Client Description
Global Health & Beauty Manufacturer
Background
The client desired to reduce out of stocks and logistics costs for a selected Beauty Care product line which was a representative pilot for other categories. Also, the client wanted to improve relationships with two targeted retailers with results that were below expectation.
Objectives
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Analyze the proposed value chain from inbound plant raw material receiving to customer/retailer store delivery.
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Determine recoverable losses in the value chain and develop projects (solution roadmap) for implementation.
TPG Approach
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TPG led a team of client supply chain functional leaders and their retailer counterparts to quantify the performance of processes and activities vs. “ideal loss” targets.
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Gaps were quantified and validated by the client manufacturer and retailer representatives.
Impact/Results
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TPG and the client project team quantified losses totaling 12-18% of COGs for the selected product line of which 6-9% were recoverable.
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Four (4) projects were identified to realize these recoverable savings.