Title

Value Chain Loss Analysis assessment of the Beauty Care category

Client Description

Global Manufacturer of Beauty Care and Health Consumer Products.

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 that below expectations.

Objective

Analyze the proposed value chain from inbound plant raw material receiving to customer/retailer store delivery. Determine recoverable losses in the value chain and develop projects (solution roadmap) for implementation.

TPG Approach

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. Gaps were quantified and validated by the client manufacturer and retailer representatives.

Impact/Results

TPG and the client project team quantified losses totaling 12-18% of COGs for the selected product line of which 6-9% were recoverable. Four (4) projects were identified to realize these recoverable savings.