Value Chain Analysis Produces Huge Gains
Global Health & Beauty Manufacturer
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.
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 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.
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.